The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-04-18

fected with the sale of but 5000 barrels OF
reaction may s- have S Been ng precpitated % by the
action Of the Seep purchasing agency in re-
fusing to purchase credit balances from
minor importance. The established price of
$3.50 per barrel for credit balances re-
ana wi Who ,hs Sad rea o
aseney's office AID aid realize $3.50 per barrel
for 1t. The speculator who had bought this
oil In small lots, with the idea of realizing
the difference between the actual market
commodity was promptly checked in his ex-
pectation or realizing profit through his
a hs step ts pas nrodseer and %
the purchaser. Its only object was to give
the producer the benefit of a market estab-
1ished by the 'unalterable law of supply and
demand and not fixed by a speculative
craze for buying something merely with
the end in view of selling 1t again TO some
one else at big advance. The speculative
market simply overtopped itself. The cul-
minating point was reached and the reac-
ton set in. The market was carried down
much more easily and rapidly than 1t went
up. There were no heavy buyers at hand
stepped out with their profits were not re-
investing at $2.69. The price was too rich
There was no particularly big & short ,,ea- inter
tors were at hand to take the oil offered
on the floor, and the buyers, who were
other in their hurried desire to dispose OF
what they had bought. Through 1t all the
price at the Seep purchasing agency re-
manned unchanged. Producers who had
rushed in to dispose of their credit bal
ances found q fixed price for their product,
that was not dependent on the ups and
downs of the changes in quotations on the
OIL Exchange. They were brought face to
face with a realization of the differences
between real and speculative values, In
way that had never before presented itself.
They perceived in an instant that the ex-
change no longer made the oil market and
that the price established was fixed by the
law of supply, and demand, to which both
speculator and producer were compelled TO
submit.
1.-The lesson of yesterdays experience Is
a plain one, and he who runs may read.
There are but 10000 barrels of speculative
oil in existence, represented by certificates
Probably twenty times more than this
amount have been bought and sold during
the past three weeks The man who made
the last purchase was unable to find anoth-
er buyer to take it off his hands. He had
not bought anything that he wanted for his
own use. and when he found the other fell
low was not at hand to take 1T at higher
figure than he paid for it,. in his eager de-
any price to any one who would take it off
his hands. 1t is the last buyer who pays
all the profits. The slump applies to purely
speculative oil only and there is no reason
to anticipate that the panic that started yes
ter1ay win extend. to the price paid for
credit balances to-day. The price of credit
balances has remained steadfast, and pro-
ducers who have oil to sell have no cause
to apprehend any very sudden. change IN
the present conditions of supply and de-
mand. The price that was established and
prevailed throughout the excitement on the
Oil Exchange yesterday has substantial
asiS and there is every reason to bellev0
that 1t will remain in force until there is
of the general law that governs values OF
all kinds