New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1872-08-25
The Wheat 'Corner'' Smash Up in Chi
CagOs


We copy the following interesting dis
patch from the Memphis appeal Of Wednes-
day:
CHICAGO, August 2O,-The break which
commenced in the wheat market yesterday
continues today, and prices opened this
morning at %, and rapidly declined to
81 II for cash or August delivery. There
is the greatest excitement, and there are
numerous rEmoTs Of broken bulls. The
entire commercial community is in q whirl
of excitement over the breaking Of the
great corner in wheatand the consequent
collapse Of the managers and their aGher-
ents. What BLACK Friday" was to the
gold and stock market in New York II day
is to the Produce Exchange Of Chicago.
The decline in the price OF wheat, which
commenced yesterday morning and cOutln-
ued. steadily throughout the day, as
before stated in this dispatch, was only
more marked this morning, and rapidly
eliminated in a perfect panic, prices re-
cedug b ) 10 for cash or seller August,
CT 81 QS for September. This crash in
prices brought with it the managers
Of the ''cgrntT,' and reports that this
ore and that. who had been following
their lead, had failed. That these reports
are true. so far as a great many are con-
cerned, is beyond doubt: but until the
N
tanned whose checks have been thrown, it
can not be definitely known how mJny are
gone, nor exactly who they are. As mat
tiers stand at present there Is intense feel
ing and anxiety on the part of almost
every merchant. Many who were not in
any way connected with the clique, who
have been the architects Of the corner
VIII be more or less losers, having to stand
between their customers, whose grain they
81 of no hull
who were purchasers, and who are now I'm
able to put up the prices. The general
feeling IS one Of the greatest uncertainty,
and to some extent distTust, simply be-
cause at present it is impossible to tell
where men stand. Men who have been on
the Board of Trade for many years say
they have never seen such day as to-day.
No one can tell as yet the final result.
The crush of the wheat corner" is the
absorbing topic of interest IN commercial
circles, and even among classes OF citizens
who have little interest in the doings Of the
bulls and bears. The subject Is canvassed
eagerly. Tue fact that the break has car
ried wish il a greater or less number of
commission merchants and operators in
grain and crippled others, and that men
who were yesterday many thousands ahead
of the deal are to day bankrupt, invests the
matter with an interest which extends also
over the entire Northwest, the more so, that
many of the grain dealers in the country
have invested their money against the
Corner" selling largely OF wheat at the
advanced prices it reached. and are cOTise-
quently. by the failure Of the bull clgl ne,
large losers.
So far as the positive failures among mer-
chants are concerned, it is still too soon to
state with certainty who are really broken.
That the firm Of J. 3. Lyon 4 Co.., who
ayers of the %CorneF,' has failed, there ap-
pears to be no doubt The names Of some
twenty other individuals and firms are re-
ported unable to meet their obligations, but
many Of these, it is asserted by parties III
opposition to know, will be able to meet all
their liabilities as soon as they can get their
matters Ia shape. Hence an injustice might
be done to solvent parties by publishing
the list. That at least twelve or fifteen
firms have refused or been unable TO put
up margins. or 50 far to settle differences. is
Internationally true; but matters are still
in such confusion that it is difficult to ascer-
tain positively who the parties are.
A prominent operator who has been du-
ring the greater part Of the time since the
corner WAS established constant seller Of
wheat, on yesterday evening called for
margins TO the amount OF SlUu,eyO from
parties to whom be had sold. The total
The losses Of this operator viii aggregate
not Less than $500 00@ and this, notwith,
standing the fact be was on the other side
from the managers Of the corner. and but
for their failure to meet their obligations,
he would have been largely ahead.
There is an exceedingly bitter feeling
among many members Of the Board Of
Trade. at the manner in which the ring
have conducted their business, as it is al
legged that they drew many unsuspecting
brokers-to financial ruin, BY inducing them
to buv grain for them. representing. even
after the prices had dropped twenty-five
cents per bushel that they were still able
and determined to carry the corner through
the month. and that they had allowed
prices to drop purpUsely. These brokers
are now left in the gap, and some Of them
viii be crushed.
\ leading and thoroughly reliable mer-
chant asserts that one Of the leading mem
bers Of the ring came to him this morning,
and assured him that they had not failed,
nor were they likely TO, and wanted him to
bring Ig0, 600 bushels of wheat for tAen To-
day. He at first consented, but immedi-
ately recOGsideTed the matter and refused,
thereby saving himself $4,000
Among the parties who are positively
stated to have failed is Hagh Maher whose
recent IRREGULARITIES in connection " in the