The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1899-10-05
ALMOST A PANIC.
Intense Excitement ON New Orleans
Cotton Exchange Caused by
Sudden Advance.

New Orleans, Sept. 30.-The widest
panic ever witnessed on the floor of the
New Orleans cotton exchange occurred
Friday shortly after business opened
and caused in the midst of the intense
excitement the complete suspension of
future business, pending the investiga-
ton of what, at the moment, was as
sumed to be gigantic conspiracy to
swindle the cotton exchanges of the
country. The panic was due to an APP
parent terrific jump in the price of cot
ton, based on alleged Liverpool adj
vices, and it was roughly estimated that
$1,000 had been lost on local trans
actions as a result. Later in the day
the exchange, after receiving legal adj
vice, declared null and void all future
transactions of the day. This action,
however, promises to be bitterly con-
tested, and litigation is likely to be the
final outcome. Future business here
will not be resumed until Monday.
The market at Liverpool opened 3-32d
lower On spots and 4-64 down on deliv-
cries as compared with Thursdays
values and continued without material
change for some time. Then the wires
became hot with tales of rapidly add
vancing prices. They started up one
half of a sixty-fourth at time first
and then jumped 1-64, 1h-64, 2-64 and
2b-64 in quick order until the net adj
vance up to 9:45, local time, showed
41-64.
In the meantime New Orleans had
opened under the influence of the Liv
erpool advance 81 to "a points higher
than Thursday evenings closing and
quickly climbed 30 points additional.
Then the explosion came. With an I'M
accountable advance of 81 points IA
cling them, operators began to receive
cablegrams from Liverpool asking the
reason for the heavy gam IN prices III
this market and stating that values in
the English market still stood about at
the opening figures. These cable adj
vices, in the face of from 10000 to So
900 bales sold and purchased, threw the
operators into a frenzy of excitement,
and they surged, shouting, yelling and
gesticulatiDg about the ring as Pres
ident Parker rushed to his desk and
summoned without the usual formali-
ties a meeting of the exchange. Amid
tumultuous scenes q motion to suspend
business was gasped out by wildly eX-
cited broker, and with tremendous
shout it was unanimously carried.
The news of the excitement on the
floor in the meantime had spread like
wild fire through the business districts
and Carondolet street, in the vicinity
of the exchanges, and the bucket shops
were soon thronged with excited men
Manager West, of the Western Union
company, as soon as he got wind of tn.
sensational advance, set his wires &c
work with messages of inquiry to New
York. Replies came promptly direct
ing that all specials in reference to Liv
erpool fluctuations be suspended un
til they could be confirmed. In the face
of these reports and the advices from
Liverpool, President Parker convened
the directors early in the afternoon
and it was then concluded to close the
future market until Monday, in order
to permit the brokers to recover from
their shock, and enable an investiga
ton to be concluded, fixing the blam'
for the remarkable laundering or the
responsibility for the conspiracy. A.
the same meeting the board summoned
it's counsel. Z. ID. Saunders, and asked
an opinion from him as to the legalit,
of the contracts that had been made un
der the misapp-ehension of facts.
Having been informed that all con
tracts made this day." said Mr.. Saun
ders, "were based on false reports from
Liverpool as to price, ] advise you tina
the consent essential to a valid coutrac
was wanting, and the contracts, there
fore void" Upon the basis of this opin
ion the contrats were declared off. Tn
curbstone brokers. or at least some o
them. protested against the action
the board in declaring contracts void
and claimed that they were not gov
erned by the axchange. Other broker
were likewise of the opinion that th'
exchange had exceeded it's authority
and threats were freely made durin'
the afternoon of resort to litigation
to determine whether the contracts
should stand or fall.
Friday is the first time in its histOr,
of 30 years that the New Orleans cot
ton exchange has been compelled tc
SUSPEND business. During the panic
1898 a similar attemnt to sus~end We
made. but failed. The exchange too
the ground then that Suspension woul.
iniure it in the markets of the world