Institution

The wheat economy, specifically the selling of Manitoba wheat abroad, is a complex process involving many actors. The farmers grow the grain, harvest it and haul it to the local country elevator for storage. The grain is weighed and graded, and payment is duly made to the producer. The country elevators and massive terminal elevators are owned by producer co-operatives and private grain companies. Export grain is loaded into railway cars generally destined for terminal elevators at Thunder Bay, Vancouver, Prince Rupert and Churchill. Shipping companies then freight the grain by water to its destination. Besides international sales enormous quantities of grain also are required by domestic millers, distillers and feed manufacturers. Grain brokers bring buyers and sellers together, while vessel brokers book space on ships for their clients. Banks and insurance agents see to the finances, while exporters chase down new markets. All these interests or companies which have a stake in the sale and movement of grain have seats on the Grain Exchange. (16)

The Exchange acts as a forum for all these interests. It is not a corporation itself, but instead is a non-profit association which provides marketing facilities for its members, set rules of trade, publishes commodity prices and related market information, and arbitrates commercial disputes. It is the only agricultural commodities exchange and futures market in Canada, and is second only in size to the Chicago market.

The tremendous growth in grain production during the boom years at the turn-of-the-century had its accompanying problems. There were shortages of elevator space and grain cars; grain was improperly handled; its grading and weighing were not standardized; and prices paid to producers often were low and unstable. In 1906, the Royal Commission on the Grain Trade in Canada examined these and other problems, including farmers' grievances against the Exchange itself. While steps taken to address some issues, the Exchange was given approval by the Commission.

The work of the Grain Exchange in establishing and systemizing a market in Winnipeg for the handling of the crops of the West has been a great benefit to the country. (17)

A further expression of farmers' discontent was the formation of the Grain Growers' Grain Company, a producers co-operative that sought a seat on the Grain Exchange in 1907. The Exchange blocked the co-op's admittance in a purely political move, causing the provincial government of Rodman Roblin to take legislative action to dissolve the Exchange, then re-establish it in 1908 as an unincorporated voluntary association with a revised constitution. (18)