New-York tribune., 1883-06-18
MONEY IND BUSINESS.

Tho event of the week has been the failure
at Chicago. For nine months powerful
cliaue, comprising several millionnaires, backed
nv some of the strongest banks, and man
aged by one of the ablest and b0dest oper-
ators in the country, McGeoch, has ruled the
| Chicago market in lard and provisions gener-
ally. besides conducting enormous dealings in
grain. Prices have been marked up, in spite
of desperate resistance, and "pegged" at
high figures. but no chance was found to un-
| load. Hogs began TO come in at an unusual
rate. and we're even shipped westward from
Cincinnati to Chicago; packers strained every
nerve 10 make all the lard they could at the
high prices; and foreign buyers were deferred.
In order 10 force a settlement McGeOch made
charges of fraudulent adulteration against the
principal relners, and caused very strong tes-
timony to be given in support OF those charges.
But this only rendered it harder to sell lard,
at home or abroad, and made banks afraid OF
il as n security for loans Heavy sales on
Friday indicated that the pool was breaking
M. and the collapse on Saturday morning
brought the failure of McGeoch, who is said
IN have lost all his means and to be a million In
debt besides. There is probably some exag-
peration in the reports though the nominal
losses of the clique must have been
very heavy. The 100000 tierces sold on
| its account on Saturday were worth not long
| ago about 81 ,76O, ,000 at 12l4 cents per pound,
| and over $11,100,000 as late as Friday, at
| I 10 cents per pound. But at the lowest fig
uros of Saturday the whole quantity was worth
| only about S8,5l0,000. The losses OF the
oliaue may have been as much as $3,OOO,OOO,
| tbouph they certainly did not buy a great
deal at the top, nor was there much sold at
the bottom but it is asserted by some that as
mucb rs 100000 tierces, including paper
lard.r was held by the clique. Then the losses of
McGeoch alone were only part of the whole.
The final collapse was occasloned, 1t Is stated,
Inv the refusal of Mr.. Mitchell, a member Of
the pool, and the bank which he controls to
lend any more money on lard. But 1t Is IN
the nature of things that speculative cliques
come to grief, in one way or another, when
they try to maintain artificial and unnatural
prices.
A sharp decline in grain was occasioned in
part by sympathy with the collapse III provi-
sions and by the struggles of men who were
interested in both markets to keep their heads
above water But there were other causes !
esnecIally the remarkably favorable weather,
which has doubtless materially improved the
condition of all growing grain since June l..
II yns generally felt, too. when the
| limo report of the Bureau appeared,
that il was rather more gloomy in tint than
other information. AS to Oregon, where
decrease is reported, and California, where the
renorted gain is small, the Bureau does not
agree with the accounts given in papers OF the
Pacific coast. Another influence affecting the
market was that more favorable accounts were
| oivon of the prospects in Europe. Chi
| copo bankers report an unusual demand
for currency from the wheat districts of tho
Northwest, which indicates that the farmers are
inclined to dispose of their reserves at present
nrices. On the other hand, it is well to
remember that the long drouth, which played
havoc with the crops of 1881 began
about this time, and not even the winter
wheat crop can yet be considered wholly
out of danger.
The early demand for currency from the
Northwest is likely to put an end to the
movement of money to this centre. which, in
deed. must have been very small last week.
With Treasury balances differing less than
| $4,000 in gold from those OF the week
| preyious the banks return an increase IN
specie average of $71s,90O, against loss of
1897, 200 in legal tenders, of which $4,000
went into the Treasury. The rate of exchange
has at times been such that exports of gold
might have been made for speculative purposes.
But tho sharp decline in lard, In provisions
and in grain, which occurred late last week,
may incease the export demand. The main
tcnance of high prices by main force, as all
know, has been an important cause OF the
decline in exports for some months past. In