THE CHEAGO AGO WHEAT "CORONER"

Ashburton Guardian, Volume VII, Issue 1625, 2 August 1887, Page 3

THE CHEAGO AGO WHEAT "CORONER"

Thi collapse of the Ohioigo wheat 'coroner," which took place a few days ago, adda one more to the very long list of failures to obtain a semi-monopoly of one of the world's groat products. That tho United States— tho paradise of Protection — is also the chosen home of monopolists, who evil themselves " corners, " "ciqies," ''combinations," etc, Ib perhaps only what might have benn ex peotad. For with. the chief commodities saddled with import duties, whioh are m a large number of Instances practioally prohibitive, the possibilities for theie monopolists are very groot It the poople of the United States happen at any time to be fortunate enough to be able to buy goods at much less than the price for which they could be imported when the duty \b paid, the general custom Beem to be for an association of capitalists to be formed to buy op and raise the prices of these as high as the consumer can possibly endure them without turning to Impottad goods In their place. In the oase of (roods of whioh the country does not produce an exportable surplus this may j I be all very well, but we oannot help feeling surprised that so astute a o1«bb ts the United States business men are supposed to be should attempt so often to 0 jntrol an article like wheat, whose price, as far as they are concerned, Is now regulated by the price ruling In London, the great wholesale market of the world. Probably the Bame confusion of thought whioh leads them to imagine that Protec* tion either creates or diffuses wealth, or benefits any but a small fraction of her people, renders them unable to see that a combination whioh could effectually control articles of which the State barely produces sufficient for her own consumption, may be utterly prwarlefs to make an impression on an nriclo of which there is a Urge «urplu3 for export. This latest " corner," of course, has bneu based upon the highly favorable "eta tlstical " position of whe&fv r< gating which we have so often supplied figures, m order that tha trade out here might see the position for themselves. Since Autumn last the Ohicago and New York and other '* bulls " have bean buying wheat extensively on the "certainly" of a " squeeze " In May and Juno, when it was anticipated that the United X ugdom and France would be at the msroy of the "corner." The result, hownver, is that the "corner " Beems to be at the mercy of the consumers. All kinds of explanations will, of course, be offered. *' Eng land's heartlessness m refusing to bay more freely when her own reserves are so low, and when her prospective supplies are so much curtailed ; " unmanageable visible supplies m the United States, and unexpected arrivals m London from some quarter or other. The fact is, however, that at prosent there is a limit to the power of monopolists, and that the wheat markei of the world is too big a thing for the biggest "corner" that Chicago, New York, and California have yet been able to put together. — " Melbourne Argus."