The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-10-23
PANIC ON IN THE WHEAT PIT.
THE DECEMBER OPTION DROPS TO
7O5 CENTS.

The Highest Price of the Morning
Session 74N Cents-FOrmer Bulls
TumbIIng over Each other In
Their Rush to Unload Their Hold
Refusal by the Banks to Advance
Money to Carry Cash wheat.
Chicago, Oct. 22.-December wheat took
another big tumble on the board of trade
to-day and the wild excitement on change
which accompanied the collapse bordered
on a panic. There was a fall of 494 cents
from yesterdays closing price, exceed
ing the advance for any day since the
sensational upward movement began in
this country and abroad. Late in the day
there was a recovery. The highest point
during the morning session was 7414 cents.
The closing price was 7012 cents. Toward
the closing hour the slump was so rapid
that drops of cent and more found no
bidders. The price went from 73 to 71A
cents in five minutes.
The scenes in the pit were such as board
of trade history is made OF. There was
a frantic rush of sellers on the strength
of rumor that Cudahy had Joined Ar
mour in unloading his holdings. Thous-
ands of bushels were dumped on the mar
ket, but there were no buyers who could
keep pace with the quantity offered.
There were some heavy losses. The main
cause of the decline was said to be fail
ure to secure advances from the banks
for buying cash wheat.
ho1f -.
the price of December went down 22tc,
and the ineXorable banker was blamed for
refusing to lend money on any terms. The
demand for money overshadowed all talk
of foreign shortage, of shipments to In
dia, or Of news from Australia and Rus
sia. Cash wheat sold below futures and
the price of the former declined from to
cents before traders were allowed a
breathing spell.
Armour said that the key to the situa-
ton was the scarcity of money and that
the price of cash wheat was pulling future
wheat down. The curb last night prepar-
ed the way for the slaughtering of the
market price to-day. Wheat sold at "a 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 a certain price if the decline con-
tinued. Most of them wanted the deal
| stopped at "A to 7415 cents, but before they
could as much shout sold" the expert in
the box had marked the price down from
| 75A to 721a.
Then pandemonium broke loose in all
it's fury, and the bravest speculator was
| filled with a dread of what might come.
| Bulls with big lines of December wheat,
who have been busy unloading during
! the last few days, surrendered some more
| to the tottering market. They sold at
/ xryI,a
took their chances of buying back again
| al a 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 i'm
perative for conservative banks to de-
| cline loans for speculation in large sums.
The Armour grain department stated
that the money market was becoming
more closely allied to the wheat market,
and that the election was the only relief
in sight.
St. Paul, Mimi, Oct 22.-The elevator
companies, because of their inability 10
get money for wheat storage operations,
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 COM
panies find it difficult to provide them
selves with necessary money, so that
millers 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 a week,
and elevator companies have widened
their purchase charge from cents to 4
cents and cents. They cannot pay more
because they cannot sell the wheat except
at a wide difference. The millers have
no money to put in wheat except when
the offer is sufficiently low to warrant
the payment of a high interest rate when
they are fortunate enough to find one
who is willing TO let money on the best
security in the money market The Min
neapolis elevator companies have been in
the habit of borrowing millions of money
at S15 and per cent. on wheat security,
but now little can be had, no matter what
rate is offered. Up to within a few days
there has been a fair supply of money
for moving wheat. The elevator compa-
MES have however, been obliged to ship
wheat to some extent to provide funds,
but they have not cut prices
to the farmer on that account. From a
premium over December wheat the price
of cash wheat has fallen to 4 and cents
under December prices. AS the elevator
companies must sell in the open marker,
they cannot pay more than they can get.