Omaha daily bee., 1888-10-01
WEEKLY BUSINESS REVIEW.
A Largely Increased Demand For
Money in the Interior.
RATES ARE TENDING UPWARD.
An Active stock Market-InCreascd
Speculation in the Hog Market
Receipts OF All Products Light
Heavy Reduction in Stocks
The Financial Situation,


the current week. Shipments of currency
to the interior were larger, and country
bankers in the leading grain producing sec
tons of the west and northwest who had
good balances here during the summer, have
drawn them down, and in many instances
are asking for discounts. The high price of
wheat, compared with year ago, requires
an increased amount of money to move it,
and the indications are that calls on Chicago
banks for funds for that purpose will increase
in the near future. Mercantile and manufaC-
turing interests are also using considerable
money, and are liberal borrowers.
Banks are fairly supplied with funds but,
as usual at this season, the tendency of rates
is upward, and there is an increased dspo-
sition to discriminate in the matter Of collat.
erals. Borrowers who want funds to carry
grain in Chicago are generally supplied at 5Qf6
per cent, while advances at other points are
chiefly on 6d6H per cent basis. Business
paper is quoted at Gas per cent. Western
cattle feeders are appearing in the market as
| large borrowers and pay 71@60S per cent. Ex
| change on New York was quiet and ranged
| at 6O@i0c discount per $1,000, and large
amounts of currency were ordered from New
| York. Foreign exchange was dull weak and
| lower
| The New York stock market was active
| but the aggregate business has not been of
| the same magnitude as during the preceding
| week. Prices showed more activity, and al
| though fluctuations were frequent at times,
| they were confined to narrower range The
| general feeling Was more confident than for
several weeks past, and the impression pre-
| vailed that the worst is over and that about
all weak holders have disposed of their
| StOrka Tntprpct rpptprnl chi in hp
Vanderbilts, especially Lake Shore and
Michigan Central, and grangers headed by
| ST. Paul. Coal stocks and the southern
stocks and New England have attracted
| more attention. The latter was one OF the
| strongest on the list, and was bought more
| generally by the outside public on reports
| that it was about to absorb some outside
| road, or be consolidated with a number of
| other lines, and prices advanced over 4
| points Sharp approximations were also re-
corded on all the principal stocks and were
freely sustained until the close. St. Paul,
although closely watched, was quiet COM
pared with the preceding two weeks, and
prices advanced AZ points on buying by
| foreign operators. Reports of net earnin gs
| for July were not as favorable as expected.
| All the leading roads which run into grain
districts are doing little better business
| than at any previous time in several months,
|
show a fair gain over the same week last
year. Efforts are being made to advance
rates to a paying basis wherever possible,
and the indications are that the roads will
have an increased business the balance Of
the fall and winter at fairly remunerative
rates
The aggregate sales on the New York
| stock exchange for the week We're ], ,S9S, ,904
shares, against l,S7i, ,4l5 for the previous
| week.
| In the wheat market the oft made pre-
| dCtions of 30 wheat have not only become
true, but Hutchinson's brokers bid $500 for
| it before the close Saturday. Trading in the
| early part of the week ccntered chiefly in
December, though final developments in Sep
| tcmber attracted unusual interest, which
was impaired moro or less to October. Take
| all in all the last few days Of the week. or
the closing day of the month, seemed to
bring the shorts to a realization Of what was
in store for them, and they hastened without
ceremony to provide for their outstanding
| contracts. That the advance was due princ-
paly to speculation, of which the direct re-
suit was an oversod market, cannot be dis
puted, although undoubtedly some manpu-
lation on the part of the person or persons
| suits
Not for great many years has the market
been in such condition for manipulation as
| during the present year, The stock in store
| here of contract wheat is down to about
900 bushels. The receipts are small
| and most of the contract wheat shown in the
daily inspection is wheat transferred from
one elevator to another, or coming from some
| receiving point, and not, strictly speaking,
country receipts. 1t evidently is wheat
shipped to take advantage of the wide differ
ence in prices in Chicago markets over
those ruling at points from which wheat was
| shipped.
New winter wheat was graded low this
year and the new crop of spring wheat is
equally poor, or at least arrivals thus far
have for the most part inspected No. and
l g n,tl,,
| has been eagerly sought after by milers IN
J | that part of the country and the competition
, | there has kept the receipts from coming to
Chicago. Thus it will be seen that the
short interest could eXpect but little
= | else if the one in power wished to exercise
J | that power to suit his own convenience.
! | Manoeuvers of the September future stirred
1 up the shorts to realization of the facts, es-
| peCally those in October, who argued that
with the September future so easily manpu
lated, what might they expect in October
and the fever Of excitement and the anxious
e fear of being caught extended to operations
in that future and shared in more or less By
O | the still more distant deliveries. The infu
. ences governing the market have been de
:, cidedly local, though some uncharitabe per
;. sons incline to the belief that collusion be
n tween the operations of the Chicago market
l. | and those ofthe northwest existed They were
n | certainly wonderously in harmony with eacl
a other, though 1t is doubtful if this was NOR,
v than incidental upon the general situation.
|
II nothing definite can be said. Some parties
S incline TO the belief that wheat will all b
n delivered out, and others claim that if II is l
:. will undoubtedly find its way back to th
y present holder Much, of course, will dcpeu'
y upon receipts within the next few weeks
II But the influence and power that lies behin
the control of cash wheat Is not TO be ig
a nored, and il is not likely that the presen
holder will let it pass out of his control A
IS far as corn, oats and other grains are con
y cerned the market has been practically nom
p inal during the week, as wheat has over
is shadowed all else.
9 In general way the market for hog pro
AZ ducts attracted rather more speculative al
tention during the week just closed. Trad
n ing was we'll distributed through the mex
4 live months though January deliveries Inc
~ with most favor. The feeling was somcwha
il unsettled and prices huctuated considerabl
ts for some articles, taking quite q wide range
3 Receipts of hogs We're moderate, with price
n | favoring buyers which had some effect i
ie reducing prices for the product during th
NJ early part of the week Toward the clos
the market showed more strength, PARTIAL
due to the sharp upward turn in prices G
grain, the reaction in the hog market and
. desire on the part of shorts TO provide 70
- outstanding contracts. Prices for all d,
scrptions of product for January deliver
~ are based on about s5l21z4525 per II
pounds for live hogs. The shipping deman