Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-10-23
TUMBLE In WHEAT.
EXCITEMENT BORDERING ON
PANIC ~ CHICAGO.
FRANTIC RUSH OF SELLERS,
Some Heavy Losses--Main Cause of
slump Said to lie FaiIure To Secure
Advances from BanLs--EIecfion
Uncertainty.

CHICAGO. ILL, October 2-De-
oemoer wheat took another big tum-
BILE 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 iS-4 cents from yesterdays closing
prices, exceeding the advance for any
day since the sensational upward move
ment began In this country and abroad.
Late In the day there was a recovery.
but the highest point reached during the
morning session was "A 1-lc. The closing
price was 701-2 cents. Towards the
closing hour the slump was 80 rapid that
drops OF cent and more found no bid
ders. The price went from 70 to n Ia In
five minutes.
The scenes I'm the pit were such as
Board OF Trade history is made Of
There was frantic rush Of sellers on
The strength of a rum0r that Cudahy had
Joined Armour in unloading hls holdings.
Thousands OF bushels were dumped on
the market. but thore 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 failure 10 secure advances from
the banks for buying cash wheat. Within
half an hour after the opening the price
Of December went down 2S-4 cents and
the inexorable banker was blamed for
refusing to lend money on any terms.
The demand for money 0vershadowed AL
talk OF foreign shortage, OF shipments 10
India. or news from Australia and Rus
sla. Cash wheat sold below futures, and
the price Of the former declined from
6 TO Z cents before traders We're allowed
a breathing spell.
Armour said that the key 10 the situ-
alton was the scarcity OF money and that
the price Of cash wheat was pulling future
wheat down The curb last night Vrc-
pared the way for the slaughterne OF the
market price to-day. wheat sold at "a
in the street and this. added 10 the c-y
Of distress from the cash market, threw
the pit into Mysteries AT the opening.
Houses were swamped with country or
ders to sell al q certain price II the de-
cline continued. Most OF them wanted the
deal stopped at a 70 "A l-2 cents. but be-
fore they could as much as shout Sold
the expert I'm the box had marked the
price down from 70 IL 20 y ID.
Then pandemonium broke loose In ell
it's fury. and the bravest speculator was
filed with dread OF what might come.
Bulls with big lines Of December wheat
who have been busy unloading during
the last few days. surrendered somo
more 10 the tottering market They sold
az prices which brought them fortunes,
and took their chances OF buying back
again at a lower price. The bulls who
have been crying dollar wheat" how
ever. have not been silenced by tho
tumble Of the last two days. The bank
ers said that the election uncertainty
made IT imperative for conservative banks
to decline loa Cor speculation in large
sums. Armour's grain department stated
that the money market was becoming
more closely allied to the wheat market,
and that the election was the only re-
lief in sight
ELEVATOR DIFFICULTIES.
ST PAUL. MINI, October 22.-The
e'evat0r companies, because OF their
ability 20 'get money for wheat storage
| operations are compelled TO sell the
wheat bought in the country, in order 10
| realize money with which 10 make fur
ther purchases. The demand for CASH
wheat Is thus cut in two. by reason of
the fact that terminal companies find Ir
difficult to provide themselves with neces-
sary money. so that millers come
in as practically the only support Of tho
cash market, and their wants are not
sufficient TO take all the wheat offered.
The result Is that the cash price has
| fallen heavily within a week. ana eleva-
tor companies have widened theiE pur-
| chase charge from cents to ana 5
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 10 find one
who is willing 10 let money on the best
securities in the mOney-market
The Minneapolis elevator companies
have been In the habit OF borrowing mil
| lions OF money at Sl-2 and 4 per cent.
on wheat security. but now little can he
| had, no matter what rate Is offered. Up
| 10 within a few days there has been a
| fair supply Of money for moving wheat.
| The elevator companies have. however.
| been Obliged 10 ship wheat TO some ex-
| tent TO provide funds. AS the elevator
| companies must sell in the open market.
! they cannot pay more than they can get.