Savannah morning news. [volume] (Savannah) 1868-1887, 1881-08-26
THE SPECULATIVE Squirt.
The Activity In the Produce and
Provision Markets.

We have referred to the effect in Savan-
nah of the rise in the price Of grain in the
Western markets, quotations showing q
considerable increase. Some large pur-
chases have been made, but there is a dis
position on the part of many to wait for a
decline. which from present indications is
not likely to occur, before operating. How
the bull feeling is fed at the North and
West one can well understand by the fol-
lowing article from the New York Herald,
which will be read with interest:
''There was not so much excitement in the
grain market Yesterday as during the closing
days of last week, which will long be mem
Orable in the annals of the Produce Ex-
change for the rapid fluctuations and heavy
transactions that marked the business on
the floor. At the opening yesterday the
great bull movement showed some signs Of
weakening. October corn-the only variety
speculated in-sold down to seventy and a
half cents, but before the close it went up
to seventy two and three quarters, which is
higher than on Saturday. Sales were not
very large, as compared with those Of Satur-
day. Wheat also opened lower, selling at
81 Al, but like corn, 1t closed higher at
81 Az. While the business of the day was
not SO large as during last week, the spe Gu
latiol in grain was never so large or so
general as now. 1t is enormous in volume.
A craze seems to have seized upon the peo-
pie, and orders come not only from every
city in the country, and from the CONNER
cial towns Of Europe, but from towns and
hamlets In the country districts Of the
West. Even the farmers have not been able
to resist The temptation of specializing in
the staple, and brokers say that they have a
class OF customers now who are entirely new
to the business. The gambling is done on
a margin, just as 10 Wall street, ten thou
sand bushels of grain being the equivalent
OF one hundred shares of stock, and the
grain broker requires margin Of about five
Thousand dollars, just as his brother Of the
Stock Exchange.
"The favorfte speculative medium is Octo-
Der corn, of which there are four bushels
sold to every bushel Of wheat. OF the lat
ter, the variety dealt in is known as No. 3
red, which means October wheat of the
grade classed as 'merchantable.' After
these come oats and rye, and then lard and
hogs. The dealings in the latter, however,
are chiefly done in Chicago, not in New
York.
"The extent of the recent grain specula-
ton may be inferred from the fact that
Rufus Hatch is known to have carried at
one time l, 500, 600 bushels Of corn; promi-
nent downtown merchant who prefers to
keep his name out OF print, had 5000. 900
bushels, more than the entire supply in
store at Chicago, and Mr.. Keene, it is said,
held ], 000, 600 bushels, purchased at forty
FIVE cents and sold at q profit Of 500, 900,
according to Tumor. The Armours, Of New
York and Chicago, held even more, and are
credited with having made handsome for
tune. Among the shorts who have lost
large amounts Of money prominent Ger
man banker is spoken OF, who, for himself
and his customers, has dropped 100000
within week, mostly on foreign account.
The loss among small operators who had
sold the market short have been very large
in the aggregate.
"Mr. o. H Armoner, a prominent opera
tor, says: Il think all food products for the
next twelve months are bound to range
much higher. Remember that we are the
great suppliers of cheap food for the world,
aud when there is a marked shrinkage in
the supply here it is a very different affair
from a failure In the crops OF any European
country. When our crops fail, then, the
markets of the whole world will show the
effects Of it,
"Mr. Rufus Hatch says: In brief, the
whole cause of the recent rise in grain may
be summed up in two words-short crops.'"