The morning news. [volume] (Savannah, Ga.) 1887-1900, 1889-10-19
THE LIVERPOOL COTTON CORNER.
It's History-Closing Scenes and Col
lapse.

-
lapse.
From the Ne,c York Commercial Bulletin.
The history of the Steenstraud corner is
practically the history of the Liverpool
cotton market since last December. 1t may
not be correct to say that the operation was
actually contemplated so far back, but
there is no doubt that the course of action
consistently pursued since that time by the
operator chiefly. concerned directly led up
to it. In the closing months of last year
the prevailing estimates of the cotton
crop for 1SSS-'S9 were from 7,150,0O0 TO
7,250,000 bales, and under their in
fluences prices seriously declined. Mr.
Steenstrand did not believe in these esti-
mates, looking for a maximum of 1000, 900
bales; believing further that even were
his estimate too low, prices had touched a
point which made cotton on Its merits a
good purchase. He acted on his convlc-
tious, combining his attention at first to near
deliveries. At each successive stage as
these matured, prices had improved and he
was able to resell the cotton taken up by
him at profit on the spot, always increaS-
ing his interest in the months to come
being able 20 do SO at a considerable dis
count. In April and May the idea of the
corner appears to have taken definite shape
and been vigorously acted upon. His
GEAO us DdU rlRnCty
gagged the position must have been
strengthened by his success up to that time.
and the fact that prices had risen 13-16d.
for American on the spot and for cultures"
some ed. from the beginning of December
to the beginning Of May shows how much
he must have benefited financially. Under
contemplated short time in the mauufactur-
ing districts prices subsequently, receded
about I'd. per pound. This was more than
pOrY .tnr tod hnt hry
fear among spinners and "bear" operators
that the crop would fall decidedly short
of what they had been counting upon.
and the first three weeks of August saw a
rise of no less than I'D. per pound. During
the closing week Of that month there was
decline, prevented from assuming serious
dimensions by further free purchases by
Mr. Steenstrand. The upward movement
was resumed ia September, the highest
point, 6 52-64d., being touched on the 9th,
with Intervening breaks. After that time
fluctuations were considerable until the
last day of the month opened with Septem-
bers at 45-64d. and the market in highly
excitable state.
In order to give a clearer idea of the
scene on that day, it will be well to explain
that the cotton future" business in Liver
pool is transacted on the Exchange flags, a
large, uncovered quadrangle, partially in
closed on three sides by the exchange
buildings and on the fourth by the city hall.
To these flags the public have free access,
and are constantly used by pedestrians as a
short cut between impor ant thoroughfares.
In ordinary times the method of doing
business on the flags is free from the noise
and apparent excitement almost daily to
be noted in our cotton exchange
Buyers and sellers roam around in,
to us, an apathetic mood, out of which they
are only occasionally aroused by the near
approach of closing time. The presence of
the public in the shape of q constant
stream of passers-by is thus no hinderance
to trading. When the anticipation of IN
usual excitement delays the ordinary way
farer and attracts besides a crowd of
curious outsiders, it can easily be seen that
the 'packn may be 50 dense as to impose
upon those who have sales or purchases to
effect physical exertions to attain their OBJ
iect, of which strenuous shouting is the
least exhausting. The closing scenes of the
corner were enacted under just such condi-
tions, and were in that respect an exact
reproduction of the famous Ranger cor
ners" of 1879 aud 1881. Here the likeness
ends, however, for where the Ranger cor
ners" closed strong the "Steenstrand cor
ner" ANONYMOUSLY collapsed; for it soon
became apparent that instead of the ex-
pected rush of 'bears" to cover a supposed
short interest, there was to be wild scram-
BILE on the part of "bulls" who had been
riding on the back of the chief operator to
get out, and that he himself, far from stay
ing the stampede, was a seller too
The scare was complete, and the
difficulties already described of max
ing way amongst the crowd Of
purely spectators, and the fear Of being
unable to discover in it the needful buyer
intensified the rrigat of the whilom bulls !"
The market was broken up into twos and
threes, and with each separate knot differ
ent prices were recorded on descending
scale until 1854 was touched, fall from
the opening of nearly I'd per pound. The
last price Of all was 6 22-64d, the corner"
closing thereat with the leading operators
wealth less by some $3.50 900 than what he
could have figured it at before the first
transaction Of the day was recorded.
In the "corner" of 1879, Morris Ranger
handled lis, 900 bales out Of a st 1ck of 49,
900 bales Of American, and In that OF 1881,
about 400, 900 bales QUO Of a stock Of 5i5, 900.
La the latest one Mr. Stee 1strand is reported
b have handled some $1,000 bales out OF a
stock Of $4,000 hales In this re-
g. ec5 IL falls far short Of the
other two ia digniiy-1r indig ity-
ms a "cOTnsr." It's ultimate outcome 20 tho
originator may however, be none the iesi
profitable on that account Both the