M
y father wanted to find some business to sink his teeth into. There was a small group in Walla Walla that included him and these businessmen had discussions over coffee or lunch several times weekly. They came up with an idea that seemed foolproof. Let’s take a look at it.
There had been a depression in 1910 but it was a quickie and things economic were looking up. Wheat prices per bushel were much lower than they had been in other recent years. The wheat harvest was expected to be less than usual because the winter had been harsh. There were rumblings in Europe about a possible war soon involving at the least England, France and Germany. If war was declared there would be much production of bullets and tanks and although the need for foodstuffs would be great the workers and transportation would suffer. In town there was what you would term now a commodity exchange, or brokerage office. It was called a “Bucket Shop.” Dad and his friends decided to purchase grain futures under a ten percent margin requirement. They didn’t get grain--they just had the right to purchase it at the then existing price. Obviously if the price of wheat per bushel increased profits would occur and if the price decreased participants would have to put up more dollars to maintain margin or decrease the number of bushels they controlled. The calculated reason for investing was the guess that the price of wheat would go higher. And it did--but not until my father had lost his money. And now I must tell you a story that was told me many years ago. Ellen and I had taken a trip by automobile to California and we were now in Las Vegas. Getting there we had spent more than we had anticipated. I had answered correspondence from the cashier in the gaming room at this hotel and I went to see him about cashing my personal check. He assumed that I was planning to use the money for slot-machines and other games of chance. He said that he would take care of my needs and then he asked, “How much do you plan to lose?” Frequently if there is a chance to be a big winner there is also a chance to be a loser. My parents were now really low in cash. Mother’s relatives lived in the Spokane area. She and my father had visited Coeur d’Alene a few times and thought it was a proper place to make a fresh start. Staying in Walla Walla was out because they no longer could play the games they previously followed and Coeur d’Alene was reasonably close and was growing in size and activity.
Red Coats
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