Monday, Jun. 30, 1924

Wheat and Trade

The Chicago Board of Trade has had its troubles ever since the War. As a result of the speculative crash in the grain markets in 1920, the "farm bloc" imposed many new restrictions upon the organized grain market, and farm organizations have resolved to assume control of the free and open grain market or else deliberately put it out of business.

The movement among farmers to own country grain elevators cooperatively dates back many years. Now it has advanced upon the mammoth Chicago grain elevator companies also. The American Farm Bureau has under consideration a plan to take over five large Chicago grain firms-Armour Grain Co., Rosenbaum Grain Corp., Bartlett, Frazier & Co., Rosenbaum Brothers, J. C. Shaffer & Co.--which handle over a billion dollars cash grain transactions annually. In addition, some 5,000 small cooperative elevators will under the same plan be acquired. Curiously enough, the attitude of the five big Chicago firms is quite friendly, although they may be making a virtue of necessity.

Just what the realization of this plan would do to the speculative wheat market is conjectural. Some hold that it would doom it, since the farmers would hold all the grain and could corner shorts or ruin bulls at will. Others believe open speculation in grain is necessary and will continue. All agree, silently or aloud, that the move will not end grain speculation. The farmer will be compelled to speculate on grain held because of fluctuations in foreign markets, and the inevitable uncertainties of the factors of supply and demand.