154 American Cattle Marlcets and the Dressed Beef Trade. 
preponderating interest in tlie market whose surplus supplies the 
Eastern and Soutliern States. The inference to be drawn from 
the above is the natural one, that competition is restricted ; for 
what would be easier than a combination of interests ? 
Practically we do not find it so, except to a very limited 
extent, and for the following reasons : — (1) That the dressed 
beef men are active competitors in selling their goods at outside 
points. (2) That the privilege of carrying their produce is 
actively worked for by the various roads. (3) That there are 
outside buyers from New York, Boston, Philadelphia, Pittsburg, 
and Buffalo, who are always on the alert for any bargain. It is 
true, of course, that, with a greater supply of cattle than we 
have a demand for, the dressed beef buyers step in and depress 
the market very heavily ; but this is the case in any other 
industry. As for instance, we have seen wheat, which is dealt 
in by the whole world more or less, where every combination 
to " corner " it has come to a disastrous end, go down far be- 
low its natural level because the supply was greater than the 
demand. In our cattle markets we have great periods of de- 
pression, and then again there is a reaction and prices are 
forced above their natui'al limit. The course of the market 
during the past year is an excellent example, as the price of 
cattle varied to the extent of thirty per cent, betwixt the highest 
and the lowest points of the year. In this great variation 
where were the dressed beef buyers ? If they are such a power, 
why did they not hold prices down and keep the market at 
zero ? 
As the result of practical experience during the last eight 
years, the writer believes thoroughly that prices (in the Chicago 
Yards, at least) are the result of supply and demand. There 
are more or less local incidents to affect it, but gradually they 
are corrected and trade revolves in its proper cycle. To revert 
to 1888 as an instance, we find that the receipts in January, in 
comparison with the same month in 1887, were nearly 40,000 
greater, and, as a consequence, down went prices. February, 
March, April, and May showed slight increases over the equiva- 
lent months in 1887; but the demand was also increased, and 
values stiffened at once. The month of June showed a decrease, 
and gradually the market, which had been surely and steadily 
advancing since February, made a decided advance, amounting 
to a " boom," as we call it, and values were quoted at least thirty 
per cent, above the rates current in January. With moderate 
receipts in July and August and the first half of September, 
prices kept steady, fluctuating, of course, more or less from day 
to day. During those months we had very active competition 
