The daily gazette., 1882-11-25
A BAD PANIC IN OIL
THE PRODUCING REGIONS sh
AN uPROAR.
PUT NO FAITH In KEROSENE.
The standard oil Company Said to be ~
The Bottom of the Excitement-Fortunes
Lost And Made.
-PhIladelphia Press.l

PrrTsBURG, Nov 24-To-day must 20
into history as the blackest of black Fridays
in the history of oil. Those who thought
nothing could he worse than yesterday after
noon, when oil tumbled to 81 cents, con-
fessed by noon to-day that there were un-
touched depths on Thursday that were fully
sounded on Friday. The power OF the
manipulators was shown in such way as
must have surprised even the men At the
long end of the many sided lever. The
banks added to the panic here, in Oil City
and in Bradford. A big operator in Oh
City laid down this morning for an fndef-
mite amount and was promptly sold out.
His name Is withheld, but his misfortune
helped the panic, the like of which has NOT
been experienced here or elsewhere. Loans
have been called in, and oil margined down
to IS cents in other words one must con-
sent to place that value on each barrel be-
fore he can squeeze dollar over a bank
counter on oil certificates. The lowest
point reached during the forenoon was 88
cents, shortly before the noon closing. The
opening price was 80 cents, and the fore
noon range was as follows !, Bid, 95, 81, 95.
eS, 81, 93, 81, 921S "a bid at the close. In
the afternoon there was further reaction,
and the market closed for the day at 96L.
on CITY, Nov. A.-This has been an
other day OF great animation in oil, and the
result is disastrous to many men yesterday
possessed Of fortunes. The decline was un-
expected ard came like thunderbolt from
cloudless sky: yet close inspection shows
1t should hove been expected. The advance
has been extensive and continuous. A large
number Of men who never speculated he
fore had invested, They had heard stories
of how everybody was making money rap
idly, and they wenG in. The enormous
stocks were lost sight of. They thought of
nothing but the advance to $l.50, which
they felt sure must come. The brokers gen-
orally advised caution, but the speculatcrs
emboldcned Nv success bought more until
their capital was exhausted. When the end
of the string was reached 1t had to
give way. Many of the older and
more experienced spectators saw how
the matter stood and sold their oil.
When the break commenced the heavy
dealers having learned by bitter experience
the futility of trying to swim against the
current commenced selling short. Then
the president put out oil under the rule for
weak parties and these are the principal
sufferers. The decline can hardly prove ofa
permanent nature, and an early recovery is
more than probable. While the lambs are
being shorn the probabilities are that the
wolves are taking in oil, and when the
market gets on its feet agaiR it will proba-
bly, go higher than 1t has been yet. 1t
opened this morning at l0l, declined to SO,
advanced aud closed at SO. The sales
| reached 9,3U3,0 900. Numerous sales were
made during the day by the president under
the rules.
WARREN, Nov. 24.-The excitement In
oil exchange circles continued to-day. The
market opened at 81 40, broke to 9S and In
less than ten minutes oil was offered at 80
Withfew exceptions men doing heavy specu-
lating business were ruined fortunes being
swept away in a few moments. Brokers
were obliged to sell out their customers, aud
a number OF the former have already laid
down. Brokers Knowles, of Warren, and
Drake, of Oil City, stepped in and took ali
offered, which saved a further decline. The
market closed at 96A, with u
better feeling 1t will not advance
much until settlements are made. The oil
regions will never recover from the panic.
Millions of dollars have been lost, and there
is distress in nearly every homestead. 1t is
expected that there will be reports to-mor-
row Of parties falling to meet demands a.
the clearing house. The banks have refused
to do further business unless 90 per cent. on
all oil fought and sold is deposited.
THE CAUSE.
The excitement in Philadelphia was In
tense, and on the exchange the price
reached $751;. The agent of the Chester
Oil Company says
The cause is u tightness in money aud
the Standard Oil Company's manipulation
of the oil market. 1t is probably the policy
Of the Standard Company to drive all the
small Spectators out of the market, thus
| compelling them 10 sacrifice their invest
ments, They in this way reduce the price
of crude petroleum, and find plenty of it on
| the market. 1t is possible that they will
buy in the crude at low price and then
| force refined up to such figure as to make
| for themselves a handsome profit. At
| present it is my opinion that the Standard
Company IS jumping upon the market
| with both feet. Tbcre is, in m mind, no
good reason Tor the present decline. The
| demand for petroleum by consumers Is
strong, and the supply is not SO great as to
warrant any decline at all. AS to the future
we can only conjecture. What the result
will be remains 10 DC seen. OF course 1t Is