The Lyttelton Times. SATURDAY, APRIL 24, 1909. GAMBLING IN FOOD.

Lyttelton Times, Volume CXX, Issue 14977, 24 April 1909, Page 8

The Lyttelton Times. SATURDAY, APRIL 24, 1909. GAMBLING IN FOOD.

The champions of capitalism will find it difficult to justify a system that permits men to make money by gambling in tho food of the people. We are aware that attempts to corner the wheat, supply are incidents, and not essentials, of the commercial system, but there are so many iucidontal evils connected with the system that the Socialists, and tho other- zealous reformers, are never without ammunition with which to attack the fortress of individualism. Mr Joseph Leiter's attempt to corner the wheat eupply ten years ago is said to have failed, but there is no doubt that in May, 1898, Mr Loiter stood to "make" an enormous amount of money, and at least he succeeded in disorganising the food markets of tho world and inflicting intense suffering on millions of people. Possibly there would have been widespread misery in tho natural course of events, because the supply of wheat was deficient, but the operations of the American gamblers forced prices to a figure that was altogether unjustifiable. In October, 1897, Californian wheat was quoted at 38s 7-}d a quartor, and during tho next four months the price advanced elowly as the supplies from the poor harvest of 1897 were diminished. There was a fall in American prices in March, 1898, presumably engineered by speculators, but London prices remained firm. At this time Mr Leiter 'and his friends bought heavily, and April opened with a sharp rise. Tho position in Europe rapidly became acute. The Spanish Government suspended'the duties .on cereals, but without appreciably improving the condition of tho people, and in Italy tho high price of broad led to riots in many cities. In April, American wheat had hardened to 41s 6d, and as Mr Leiter had by this time secured control of a great proportion of the supply he was able to force prices rapidly upwards, until, in May, wheat touched 51s 2d a quarter. Tho price was quite unwarrantable, but if Mr Leiter had been able to induce other prominent speculators to stand in with him the corner would have been disastrously complete. But he was fighting the market, and - the burden he was carrying proved too great. The slump began in June, and by September the prico was down to 31s a quarter, but by that time, of oourso, the market had been affected by tho new crop. Ten years earlier Mr B. P. Hutchinson tried to corner tho wheat market, and almost doubled the prices, but be, too, was single-handed, and he closed his immense deal without showing a profit. Mr Patten's operations are on a different basis. He bought steadily in February and b'riskly in March, taking all the wheat that was on offer and simply holding it. Apparently ho left tho market to look after itself, contenting himself with keeping his stocks and adding to them as occasion permitted. In this way he seems to have acquired control of a large proportion of tho American wheat supply, but he firmly denied that ho was attempting a corner. Ho traded on tho fact that speculators wero selling him -wheat which they did not possess, and of course when tho speculators wanted to complete their contracts they had to pay heavily. Mr Patten, when the time was rip©, sold wheat to the men who had contracted to deliver it to him, and by this shrewd operation cleared a sum estimated at £750,000. Onco, when tho market threatened to collapse, ho bought furiously in order to maintain prices, but there is evidence now that fresh stocks are coming on tho market and that it will bo impossible for the speculator to -prevent a fall. Air Patten's operations aro no more defensible than wore Mr Leiter's. He recognised that it was not in the power of one man to corner tho whole supply, but as a number of smaller buyers wore working in sympathy with him the effect was to create a temporary corner, and tho influcnco of tho gambling has boon felt in every country in the world. Civilised countries cannot afford to leave their food supplies at tho morcy of speculators, and sooner or later drastic legislation will havo to bo adopted to prevent gambling in wheat. But when the last word in palliative legislation has been spoken there will still remain an element of danger, and it soems to us that nothing short of State control of tho food supplies will satisfactorily solve this vast problem.