Omaha daily bee., 1889-10-01
The BIG CRASH IN COTTON.
Total Collapse of the Corner at
Liverpool
GREAT EXCITEMENT ON CHANGE.
Stecnstrand Unable to Keep the Price
Up, and Rather Than Suffer
Complete Failure Yields
to the Inevitable.
f.iverpoors Cotton Corner Collapses.

LverpoOi's Cotton Corner Collapscs.
ICopWiglH 1889 bD James GOIfon Bennett
LIVERPOOL Sept 3O.-l New York Herald
Cable-Spcca to The BEE. The cotton
/ corner crash came to day. aud when the
crisis came il fell like thunderuot upon all,
especially upon Steenstrands friends and
supporters for the result was not what they
expected. The result was an utter collapse
Of the corner. and although doubtless many
brokers have lost heavily, the cotton king
has not come out with flying colors. 1t yet
remains to be seen how he will be affected.
The opcuing Of the market was awaited
/ With great anxiety and the excitement of the
4 'rowd on change has not been equalled
Since the time of the .groat Nor
ris Ranger cottoA corner in 1881.
For some days the rumors about settling had
bbeen of a varied and somewhat exaggerated
tnature, and therefore the opening of the
{market was looked forward to with intense
interest, not only in Liverpool but in Man
hester and throughout the cotton manufac-
urng district. Among those present were
Iome of the largest cotton spectators in the
! world, representatives of the great manufac-
uring firms OF Lancashire, agents of Amer
can exporters, and representatives of conti-
rental houses, all more or less interested in
he cotton ring. There were numerous con
letting rumors flying about. Some said that
'teenstrand was only a fgurehead acting
L OF behalf of himself, but of
werful syndicates, who formed the corner
f id hir'ed that it could stand any amount
squeezing, and, let the market go as it
= ight, they could not lose much, having edged
4 cleverly us to counteract the tactics of
,ither bulls or bears. Others were more
y 'loomy Great financial catastrophes were
ely to follow the collapse of the corner.
N . one time it was stated that great
merican operator, instead of purchasing,
Y is throwing his cotton into the market to
Ill at falling prices. This caused some
\ ing like "A panic and there was quite
rush of holders of cotton to get
ut. Then came another story that
he market was being manipulated
corner ring; that broker had been in
ucted by the ring to purchase 500 bales at
\ prices; that this had caused reaction
confidence, and that, taking advantage of
1 he feeling the operators had at once rushed
thousands of bales into the market, getting
| ut themselves, but leaving Others of the
| 'llls in.
( These rumors and reports that much cot
ton had been delivered led to some extrordi-
J nary fluctuations.
About ten minutes to IL o'clock the crowd
+ move in the direction of the cotton assoc-
I alton rooms. The excitement was intense.
! There was more jostling and hustle than
j there is to be found at exciting election gath
Il erings. End the shouting put the betting ring
II in the shade.
y From this time on the market continued to
drop, and when the first chime of IL was
heard from the town hall clock loud hur-
krah was raised by the crowd, several shout
| ing, 1.-THE corner has been broken"
| Much speculation exists as to the reasons
y which induced Steenstrand to make no at
tempt to check the falling market. The
y general belief was that he would be "a heavy
buyer and that Saturdays closing price
would have been largely exceeded. He, how
II ever, held entirely aloof, and the consequence
vas that the price, instead of rising, fell.
1 Many think that in the end he will benefit by
4 this step 1t is now generally believed that
the short time movement will not be carried
II into effect, but the splnners, who, with their
operatives, We're determined to resist any
) attempt to raise the staple to an abnormal
] prices will, after the turn events have taken,
buy from Steenstrand, VINO, if he has not
cleared so large profit as might have come
4 to him had he forced the market, has at any
rate reduced the risk of failure
ence to Steenstrand, as he had no
Z intention to sell any contracts.
q He had always resolved to receive
every bale which he had bought. He held
much less cotton than people gave him
credit for. IL is clear that he did not hold at
any time more than $4,000 uales, whereas the
general estimate was that he had 100000
bales. The disappointment to-day is there
fore more the disappointment of small bulls
than of the principal operators themselves.
An instance of quick delivery of cotton
! was Afforded On Saturday the steamer
Hesperides docked in the Toxteth dock
= about noon Among her cargo were 3, lI5
bales of American cotton which were dis
charged, carted and stored III warehouses;
Instant from the steamer over one and half
miles, in the short space of seventeen hours.
A )eductng stoppages, the owners were thus
Enabled TO meet September contracts ANA to
assist in defeating the cotton corner.
4