THE PRICE OF WHEAT 151 
(e) Alleged Hvils—The speculation of modern times, 
it is alleged—mostly by laymen who do not understand 
the system—on the whole works havoc in the economic 
world. Its evils are more easily recognised than its 
benefits. From an imperfect understanding of specu- 
lation, it is easy to ascribe many evils to it with which 
it has no connection. ‘‘The modern system of ‘futures’ 
has proved itself a convenient scapegoat for all the evils 
of the grain trade. It is charged with being the cause 
of low prices and of high prices, with increasing trade 
risks, and with diminishing them until there is no chance 
for profit. A few years ago the farming class clamoured 
for the suppression of the speculative market, while 
recently the Kansas farmer started a movement to con- 
tribute a cent a bushel on all their wheat to a fund for 
the benefit of the most daring speculator of the Chicago 
market.’’* But recently the operations of the speculator 
have come to be more understood, with the result that 
he is no longer regarded as a mere gambler, but a person 
with recognised and beneficial economic functions. 
The really fundamental objection to speculation lies 
in the fact that an individual, or a group of individuals, 
may secure control of the market and manipulate it as 
they please. Manipulation may occur from either the 
bear or the bull side, but ‘‘bearish’’ manipulations, on 
account of their attendant difficulties, are rare. A 
successful ‘‘bear’’ manipulation consists in selling a 
commodity short in sufficient quantities to reduce the 
price, and then to cover these contracts at the low 
price. A sufficient body of short sales will depress price, 
but the price will rise again immediately the ‘‘bears’’ 
commence buying. The danger is so great that such 
a manipulation is seldom attempted. The biggest 
operations on the short of the market were those of 
*Emery, ‘‘Economic Journal,’’ 1899. Page 45. 
