The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-06-14
1T WAS ANTICIPATED.
Views of WeI1-Informed Minneap-
offs Observer ON the ColIause.

Views of a WeI1-Informed Minneap-
oils Observer ON the Collapse.
The collapse of Joseph Letter., the bull
leader in the famous Chicago wheat deal of
lss7-9S. was clearly surprise Ia the trade
Doth IN that city and in Minneapolis; that Is
to say, 1T was a surprise coming at this
time. when the latest reports repre- ented
hlm as having successfully closed his spscu-
lat1ve accounts and retired from the mar
ket II he had gone by the board three or
lour monehs ago, the predictions of the bears
tnen current. would have been fulfilled. Fur
thermore, the tears which would have burst
forth unbidden, in the excess of their re-
Jofclngs, would have been as pearls Set in
pure gold, inasmuch as they would have
gained rich harvest in the progress of the
resulting slump. AS it is, they are them
selves still in mourning; and they are WITH
out tears, save those which spring from
their sorely wounded hearts as they selfshly
nurse the memory of their own personal
losses experienced during the past season
And what is most bitter of all, many of them
nave been compelled to witness the slump
destitute of the wherewithal which might en-
able them to retrieve those losses.
MI. Letters kite proved an excellent fyer
While its strings were free from entangIe-
ment, and he did not attempt to gather too
many in one hand. The secret of his col
lapse is easily comprehended The cause was
Identical with that which has brought MANY
OF MS predecessors in the same line to grief
with the creditable exception that so far as
Known he carries no one else with him IN
his fall. He simply held on too long. his re-
sources tailed him at a critical moment and
tne eno was inevitable. His management
OF the December option was masterful; but
would hay hoor
ne not been favored in the first instance W. tn
control OF an enormous amount of caoital
and secondly If the conditions for export de-
mano due to the worlds shortage of wheat
had not existed to encourage advances in
price by natural processes
gentleman in Minneapolis thorousbly
familiar with Mr.. Letters recent campaign
and cognizant from time to time of many
OF It's details, said yesterday: Until quite
recently this break was anticipated. Mr.
Letter, IN the first place, is a young man.
and lacked experience in the details of
specializing in the wheat market He enter d
when prices were comparatively low and at
time when predictions were being made
that there would be large shortage through
out the world. These predictions were ye.i-
fled. Prices advanced without being forced
and simply in obedience to the law of su ,ply
and demand. Foreigners wanted our wheat:
they had to have it, He passed through
the December deal successfully and it is
generally believe with large profits Then
he entered upon the May future The price
was high. He set out to control all the
contract wheat. In doing this he was obliged
to make the price; and, furthermore he was
compelled to buy at the prices of his own
making. AS the figures advanced the mar
keting OF wheat was constantly being invitsd
and he went on loading himself down with
STOCKS Tor which he was paying ever increas-
ing prices. The heavy receipts were aug
menting his burden. Then he began selling.
Meanwhile the July future became active In
order to support the price for his May ho.d-
ings SO that he might come out with
profit over and above the high prices he
was paying for contract wheat, he was abliged
to take hold Of July. But the season was
sweeping his granaries clean and marketing
his grain at the high figures which had been
reached. Mr.. Letter could not dispose of his
May wheat rapidly enough, by actual sales,
at a profit and he began shipping on consign-
ment. Thus it happened that much of his
wheat is still unsold, being simply in transit,
between here and the seaboard, and between
the Atlantic ports and Liverpool, for sale
there, as consignments, at the prices pre-
vailing. Meanwhile the prices have broke
here and this will have its effect on the prices
to be obtained for 1t when 1t comes into
the market for actual sale and delivery as
cash wheat"
This is the situation in nut she'll. In
February, Mr.. Letter fntimated to a repre-
sentative of The G o b e, at his Office in Chi
cago. that he had no intention of travelling
beyond the May future. 1t was undoubtedly
his purpose at that time, to rest on his win
ming and await the development of the forth
coming harvest. But, stated by the Min
neapolis gentleman above quoted, the offer
tngs of contract wheat came out SO freely
that In order to maintain control Of the sup
ply he was obliged to peg" the May future
Continued ON Eighth Page.