The San Francisco call., 1896-10-23
DECEMBER WHEAT
TAKES A TUMBLE
Collapse in Prices Almost
Causes a Panic in
the Pit.
Scenes of Great Excitement on
Change in Chicago Are
Witnessed.
LARGE QUANTITIES UNLoADED.
Thousands of Bushels Dumped on the
Market, but All the offerings
Are Not Bought.

| wheat took another big tumble on the
Board of Trade to-day and the wild excite
! ment on Change which accompanied the
collapse bordered on a panic. There was
| a fall OF 4s4c from yesterdays close, ex-
ceeding the advance for any day since the
sensational upward movement began in
this country and abroad. The closing
price to-day was 701Sc. Late in the day
| there was recovery and the highest point
during the morning session was 7414c.
Toward the closing hour the slump was
so rapid that drops of l cent and more
found no bidders. The price went from 73
to III in FIVE minutes. The scenes in the
pit were such as Board of Trade history is
made of. There was frantic rush of sell
ers on the strength of rumor that Cudahy
had joined Armour in unloading his hold
lngs. Thousands of bushels were dumped
on the market, but there were no buyers
who could keep pace with the quantity
offered. There were some heavy losses,
and general fear is expressed for to-mor-
row. The main cause of the decline was
said to be failure to secure advances from
the banks for buying cash wheat.
Within half an hour after the opening
the price of December went down 234 cents
and the inexorable banker was blamed for
refusing t o lend money on any terms. The
demand for money overshadowed all talk
OF foreign shortage, of shipments to India
or news from Australia or Russia. Cash
wheat sold below futures and the price of
the former declined from to cents be-
fore traders were allowed a breathing
spell.
Armour said that the key to the situa-
tion was the scarcity OF money and that
the price of cash wheat was pulling future
wheat down. The curb last night pre-
pared the way for the slaughtering of the
market price to-day. Wheat sold at "a
cents in the street, and this, added to the
cry of distress from the cash market, threw
the pit into Mysteries at the opening.
Houses were swamped with country orders
to sell at certain price if the decline con-
tinued. Most of them wanted the deal
stopped at "a to 7413 cents, but before they
could as much as shout "sod" the expert
in the box had marked the price down
from 75A to 7214 cents.
Then pandemonium broke loose in all
it's fury, and the brayest speculator was
filled with a dread of what might come
next. The bulls with big lines of Decem-
Der wheat, who have been busy unloading
during the last few days, surrendered
some more to the tottering market. They
sold at prices which brought them fort
unes and took their chances of buying
back again at lower price. The bulls
who have been crying dollar wheat"
however, have not been silenced by the
tumble of the last two days. The bankers
said that the election uncertainty made it
imperative for conservative banks to de-
cline loans for speculation in large sums.
| Armour's grain department stated the
money market was becoming more closely
allied to the wheat market. and that the
election was the only relief in sight
ST. LOUIS, Mo-, Oct. 22.-Notwith-
standing the effort of the bulls to main
tain prices and even advance the mar
ket, the speculative character of the ad-
when the bears almost without effort low
cred the December option from 7615 to 733s
cents. Liquidation by the traders who
wanted to get out on raise aided the
bears. The first and most powerful factor
was the fact that European markets re-
sponded so quickly and largely to yester-
days break on this side. A decrease in
receipts did not materially check the gen.
eral downward tendency. & report that
605, coo bushels had been worked at Duluth
for shipment yesterday and that the total
engage ments for export at New York
were seventy-tive loads, with heavy clear
ances, caused q sudden stiffness in the
market, but it soon died out again and
another decline set in. This started some
liquidation and there was a panic, traders
climbed over each,other in their desire to
sell. The pit was wild for time, but just
before the close there was a slighs re-
action. The selling was not heavy, as
no one was anxious to buy, there having
been decline of 8 cents with hardly
rally.
After a moments rest there was an
other break and December dropped to 73
cents, but rallied slightly at the close,
closing one-eighth Of a cent better than
that asked, but at a net loss for the day of
3M cents and cents down from the top.
May showed net loss of 51l cents for the
day and was weak at that On the curb
the balance OF prediction was on the side
of the. maintenance of prices, and the ar
gument OF short crops abroad, depicted
stocks, etc., was made to support the con-
tention.
ST. PAUL. MINI, Oct. o2.-For the first
time in years the elevator companies
have found it i'm possible to conduct busi-
ness on natural basis. Because of their
inability to get money for wheat storage
operations they are compelled to sell the
wheat bought in the country in order to
| realize money with which to make further
purchases.
The demand for cash wheat is thus cut
| in two by the fact that terminal compa-
nies md it difficult to provide themselves
with necessary money, SO that mlllers
come in as practically the only support of
the cash market and their wants are not
sufficient to take all the wheat offered.
The result is the cash price has fallen
heavily within week and elevator COM
panies have widened their purchase charge
from cents to and 5 cents. They can
not pay more because they cannot sell the
wheat except at wide difference. The
millers have not money to put In wheat
except as the offer is sufficiently low to
warrant the payment OF high interest
rate when they are fortunate enough to
find one who is willing to let money on
the best security on the money market.
Up TO within a few days there has been
fair supply of money moving wheat.
The elevator companies have, however.
been obliged to ship wheat to some extent
to provide funds, but they have not cut
| the price to the farmers on that account.
Developments within week have made it
imperative to do so, because from pre-
m ium over December wheat the price of
cash wheat has fallen to and cents un-
der Decent ber price.
WASHINGTON, D. G., Oct. 22.-The
Cao~at.rr of a Acrio,,1trra to-day Cavo nv