The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-02-14
BROKERS FEAR THE RESULTS
1t Will ForeStaIl Movement in
Fall Wheat.
AND MAY BRING CATASTROPHE,
The Prospects for the Harvest Are
Unusually Good, but the Market
Is Already Overstocked.

The persistent buying of wheat III the
Produce Exchange by Broker McGlautiln
and whoever may be his principals begins
to assume a serious aspect. Unless more
wisdom he behind it than any brokers,
theorists or ordinary buy-and-sell dealers
here or elsewhere can discover, If per-
sisted in much longer it will result in one
of the most serious ca tastrophes in the
history of local wheat.
According TO current rumor on the EX-
change. TINS extraordinary buying has con-
tinued ever since September. BY Deem
Der the persons concerned in it had pur
chased 90 600 tons. This would mean, at
the rate of a cent pound, no less than
100000 OF transactions up to that time.
Since December l there has been scarcely
any perceptble dimbnutOn in the buying,
and it still continues while the price OF
wheat goes down and down below prices
ever recorded before.
McGlauf1ln claims 10 be able TO continue
buying indefinitely and providing the cash
on purchases as fast as il IS demanded.
But already trading in spot wheat has
entirely ceased and nothing but May
stocks are being manipulated. In these NJ
profit is looked for but that on storage,
and even that has decreased until II
amounts 10 only 2R per cent With the
conditions prevalent, were it not for Nc
Glauflin's buving, the market would be as
dead here as it is IN Chicago and Liver
pool.
More wheat was on hand December l
than there has been any time since 1889,
and only twice since 1873 has such large
storage been recorded.
The Shipping tonnage engaged ahead is
25 per cent less than ii was last year. and
freight is at such figure that cargoes can
"a. l-.- H.
there is no demand for wheat at all
Prices in Liverpool are Of course on par
or even lower than those reigning here,
fer they practically dictate worlds prices.
~ ct in the face Of this" said promi-
nent BROKER Yesterday, "McGlautiin and
his hackers Will persist in buying. Soon
Ieli able reports will begin to come in as to
the prospects for fall wheat. We know
now that they are better than they have
been for many years When those pros
poets are announced the farmer will begin
10 offer the growing crops in the market.
Who will buy them? viii McGlauflin?
Is he prepared to accept all of the millions
of bushels that will be harvested
Hardly. Aud what Is the worst of it
all is he is fixing IL so that nobody
will be able % buy. Last summer or fall
war arose betW cen McNear, presumably
and Balfour, Guthrie 81 Co. One bought
I'D the shipping; tile other, TO circumV ent
the corner, bought up the wheat. The re-
suit was that wheat 10 the local market
went up TO 10 cents above the figures at
Liverpool Inc Inevitable result was the
transfer of great amounts of foreign stock
to this market.
Whether or not McGlaufiin was in the
deal at that time with BalfOur 81 Co., if
they were really the firm who sent the
price of wheat up. Is not certain, but GER
tain it is that when Balfour IL Co. COM
menced 10 withdraw from what proved a
bad bargain McGlaufln Il Co. took the
lead. They have kept ii ever since with
the result which is Ow evident.
When such willing buyers were on
Change everybody SOl1. foreign holdings
piled In, and the local market became more
heavily loaded even than some Eastern
ones. OF course, therefore, the prospect
Of any future movement for some time
to come is killed. Local dealers are aware
of this Tney not only have sold out to
McGlautiin but have also ceased buying.
Now. l can figure out that MrGlaufiin
IL Co.. or al least some OF the brokers who
are in the buying movement, have lost
$500. 900 on endeaVors to cover. They can
not suffer many such losses and remain
any length of time In the market. At the
first sign of their weakening or at any
evidence Of desire on their part to
lquidate the marAet will go 10 pieces.
Then the farmers viii come on with
their offerings, and there will be great
slump. No one VIII want to buy. The
wheat Will be thrown back on he farmers
hands; their win er's work will all be
wasted; their future source of sustenance
made doubtful. Then will be undermined
all the foundation there is Tor California's
better c0ndilIon than that OF Eastern
States. Ana very. very much of it is Que
TO the blind mauipuations of some brokers
on the EXCHANGE"