Wheat

Recent wide fluctuations in wheat prices are believed to be without parallel in the history of the Chicago grain trade, even during War times. May futures broke from $2.05 a bushel on Mar. 3 to $1.51 on Mar. 17. Other futures were almost proportionately wild. Rye declined from a high price of $1.82 in January to $1.10--an even more drastic liquidation.

Secretary Jardine of the Department of Agriculture has ordered an extensive inquiry into the causes of this huge break. Meanwhile, gossip in the trade persists in ascribing it to a bearish assault by "the Palm Beach crowd"--to wit, Jesse L. Livermore and Thomas Howell of Chicago, famed speculators, upon the bulls headed by Arthur W. Cutten (TIME, Feb. 9). According to rumor, the huge "bull account" of Mr. Cutten provided a tempting target for the bears, whose assault was made so powerfully that the latter was compelled to sell some 8,000,000 bushels of wheat in Winnipeg, thus helping the decline along and enabling the "bear raiders" to cover easily. The result must have been to demolish much of Mr. Cutten's large paper profits resulting from the long advance of grain prices during 1924.

Mr. Cutten himself has declared he was rid of his wheat and, from his approval of Secretary Jardine's coming probe, it may be deduced that the events of the last few weeks have proved rather expensive to the great bull leader. He attributes the fall in wheat to the manipulative tactics of a "master speculator" in Florida, supported by a powerful group of interests.

Nevertheless, Mr. Cutten has not changed his opinions as to the value of wheat by next June. "I still believe," he stated, "that, in June, cash wheat will be priceless. Europe will pay any price for their supplies, the only question being whether or not it is obtainable. I think the United States has the only important supply of wheat in the world, and that everyone will have to come here for it. The farmers and the public have been robbed of their rightful due, merely because a clique of professional bears thought they saw the opportunity for a coup."

As usual, various people's sympathies in the Livermore-Cutten battle are being determined by their self-interest. In Europe, Mr. Livermore appears as the savior of bread-eaters by tending to reduce wheat prices. In this country, he will be made into a villain by farmers and other holders of wheat. Similarly, Mr. Cutten, hero of the U. S. farmer, has been considered a usurer in the necessities of life by Europe. In the end, the Chicago Board of Trade will probably be blamed by everyone, mainly because it has really been innocent of any hand in the matter at all.