GEOG 130 Lecture Notes - Grain Elevator, Futures Exchange, Winter Wheat
Document Summary
Role of technology & board of exchange. Understanding of futures market (why important, why traders like it) Grain moved on river, ownership tied to specific batches/sacks of grain until sold @ destination to chicago/st. Every batch qualitatively different from others (rated, buyers decided quality to buy) After railroads, st. louis lost out to chicago b/c st. louis w/ better port but railroads went to chicago. Cost to move grain cheaper = more could be moved = produce more. Grain shipments in car loads" (bushels) rather than sacks. Increased production = new technology = grain elevators mechanized (1843 steam. 1848 as private membership organization - not popular. Growth catalyzed by boom in demand for grain during crimean war (1853-56) Introduced grain grading system & associated regulations (1856) Pg 116: claimed grain of certain grade, not grain of owner (bank) Chartered under illinois law (1859) as quasi-judicial entity w/ substantial legal powers" powered grain elevator)
