If I knew how to make these statements stronger or more emphatic I
certainly would. It does not make any difference what anybody says to
the contrary. I know I am right in saying these are incontrovertible
statements.
_XI_
And now I’ll get back to October, 1907. I bought a yacht and made all
preparations to leave New York for a cruise in Southern waters. I am
really daffy about fishing and this was the time when I was going to
fish to my heart’s content from my own yacht, going wherever I wished
whenever I felt like it. Everything was ready. I had made a killing in
stocks, but at the last moment corn held me back.
I must explain that before the money panic which gave me my first
million I had been trading in grain at Chicago. I was short ten million
bushels of wheat and ten million bushels of corn. I had studied the
grain markets for a long time and was as bearish on corn and wheat as I
had been on stocks.
Well, they both started down, but while wheat kept on declining the
biggest of all the Chicago operators--I’ll call him Stratton--took it
into his head to run a corner in corn. After I cleaned up in stocks
and was ready to go South on my yacht I found that wheat showed me a
handsome profit, but in corn Stratton had run up the price and I had
quite a loss.
I knew there was much more corn in the country than the price
indicated. The law of demand and supply worked as always. But the
demand came chiefly from Stratton and the supply was not coming at
all, because there was an acute congestion in the movement of corn. I
remember that I used to pray for a cold spell that would freeze the
impassable roads and enable the farmers to bring their corn into the
market. But no such luck.
There I was, waiting to go on my joyously planned fishing trip and that
loss in corn holding me back. I couldn’t go away with the market as it
was. Of course Stratton kept pretty close tabs on the short interest.
He knew he had me, and I knew it quite as well as he did. But, as I
said, I was hoping I might convince the weather that it ought to get
busy and help me. Perceiving that neither the weather nor any other
kindly wonder-worker was paying any attention to my needs I studied how
I might work out of my difficulty by my own efforts.
I closed out my line of wheat at a good profit. But the problem in corn
was infinitely more difficult. If I could have covered my ten million
bushels at the prevailing prices I instantly and gladly would have done
so, large though the loss would have been. But, of course, the moment I
started to buy in my corn Stratton would be on the job as squeezer in
chief, and I no more relished running up the price on myself by reason
of my own purchases than cutting my own throat with my own knife.
Public-domain text, read in full here on John Shaqi.
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