St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-04-08
THE FUNERAL MARCH. !"
The New York Sun Talks Interest
ingly of the Gloomy Pros
poets in Cereals.
Rascality, Dishonesty and Swindling In
Speculation Part the Cause of
the Decline.
Especial Telegram to the Globe. !

Especial Telegram 10 the Globe.
NEW YORK, April THE San says in its
Wall street column to-day. The continued
fall of prices in the Chicago mraket was the
all-absorbing topic of interest among fnan-
ciers and stock operators last week. They
seemed TO have given up their own business
for time and to have devoted all
their attention to grain quotations. Ths
stormy weather which several times inter
fered with the working of the telegraph
wires rendered the excitement still more
intense. Orders and return reports of
purchases and sales could sometimes
not be transmitted for two hours.
Meanwhile prices fuctuated with an alarm
ing rapidity. The deep interest in Chicago
affairs was evinced not only by those who
speculate in grain and provisions, but by
everybody who has anything at all to
do with wall street. The leading Chicago
spectators believed that as soon as the stu
neral march, was played out everything
would ''bob up serenely,'' and that April
would bring with it cheaper freight rates on
export demand and improved prices.
They spread this belief all
over the country, and the
farmer took it up as readily as the banker
or the financial editor. 1t began even to be
argued among the latter two classes of men
that the gold exports were the best thing that
could have happened, as a point would soon be
reached at which grain and provisions would
be forced to take the place of gold. All this
proved to be nonsense, of course Freight
rates have been cut in two, wheat went
down nearly 30 cents bushel, yet
gold continues to be exported, while
grain and provisions still remain without de-
mand. The Funeral march'' is being play
ed still louder in April, and in all appearan-
ces will be played louder still in May 1t is
just as well to put aside the illusions to look
the future right in its disagreeable
face. Our wild grain speculation and the
constant efforts of lighter Ethiopian markets
have caused Europe to look for supplies
elsewhere. To-day the English and French
grain merchants buy futures in Russia and
India and go short against them in the
New York and Chicago markets. 1t is hard
to believe, but it is nevertheless fact that
there is at the present moment foreign
short interest Of over 100000 bushels
in our market. OF course, the Won
derful change in the condition of
the grain market could not have occurred
but for the immense railroad progress made
by India, Russia and Australia, but progress
was not the work of few weeks 1t took
years to build up the roads which
now bring to the seaboard at almost
nominal rates all the wheat grown in the in
terror of these vast continents. One hears
now on every side the question: ''But when
is this liquidation to stop9'' The question
is not an easy one to answer
But it certainly looks as if the process must
continue until we bring our products to the
prices of other countries, and until
we reform our system of corporate
institutions so as to inspire some
confidence in their management. 1t is
evident that when money is drug at =
per cent, and per cent. dividend paying
stocks like the Union Pacific and the ST. Paul,
for instance, are selling at 10 and so cents
on the dollar, there must be something rot
ten in the very foundation of the system.
When all the speculative and swindliug
directors are put out of office, when honest
reports of the working of the companies
are regularly printed and when divi-
dends are reduced to the strict basis OF
the earning capabilities of the roads,
we shall possibly get foreign money again,
and if we remain still unable to export
wheat, we may be able to export stocks and
bonds again. Those who are anxious
to find out what the bottom prices
are likely to be for grain in
Chicago will probably not make great mis-
take if they put down wheat for roc, corn fol
40c and oats for zoe. The great mass Of
sales made within the last three weeks were
mostly genuine sales of actual property
Speculative short sales were INDUCED in
principally in New York, the Chica
goans being naturally bulls
and it is not unpleasant to state that New
York has hardly beaten Chicago this time
The peculiar beauty of the game was that thu
fluctuations were so rapid that the covering
could often be done within few hours O
the sale. The consequence was that there
was never any large short interest outstand
ing and no danger of squeezes.