The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-01-15
GRAIN PITS BADLY UPSET
BY FAILURE OF PHILLIPS.
PANIC OF DEPRESSION WAS
THREATENED.
Markets Finally Rcgaincd Some
Losses: and Close Was Better
Than Expected.

Chicago. Jan. 1i-There was tumult to,
day In the grain pits. For 4 time q PAM,
81 depression threatened everything. Al
otAer news was subordinate To the failure
of George Il. Phillips to advance margins
ON his deals. ard the consequent uulcIdins;
OF many million bushels of cereals ON the
already weakening markets. After the early
!apl! ana wide fluctuations and Il heavily
snort marhct had absorbed the Phillips
stun to The profit Of many Il bear. the mar
NttS 'Gletei and gradually came under us
udl liihuenceS. The close Wis much better
tAan mad been expected. May wheat SUI
Tered Il net loss of lsc. May corn %sQIec. MAY
oats 'sr'i. and May rye s.. Provisions
Giosed Independent. l"gi2'sc to l5qI7loc
higher.
Nhcn, Just before the opening of the
pSaId ne notice MS posted at the request
OF IhiIilpS tnat houses having open deals
with hlni c!oae them out at once. traders
became radly frightened. Late last night
II was Known that Phillips WAS III q tight
! tiich 10 make good his margins because 4
the SINAI! raid on his rye deals made yes
tcrGay. Bears in the wheat pit began aug
which rIlnor credited him with. Bulls. who
mad been Wavcring for the past few DAY.,
became frightened, and the result was that
When the starting gong sounded Nay wheat
WAS selling lC TO ~li-TI".c down at Sofa NUc.
such prices Were bargains to The heavily
short bear crowd. and everywhere covering
- 'rS "a i'al AL'lLs'sSAa'llN. sbtN ID
longs ana the Phillips houses. kept up at Il
trellendouS rate. fhe Phillips stuff WIS
estimated at five and I half millions, all Of
when was put out almost AT the very start
OF the market. The large extent Of the
snort accounts is. credited with having
saved the market from Il panic. Covering
ana some late bull support put the price
Tor May up again to slI.c. but the effect %
the failure was still felt, and the market
the usual conditions began to have their
eitect and the market quoted down. The
Slightly lever cables which were over
looked at the opening showed but n small
reflection OF tn" weakness Yesterday in this
market. and the continued reports of 40
moisture III the winter belt helped press
The market at the low prices. and May
closed barely weak. &c down at SlTSlIsc.
Local receipts were 6S cars. two of contract
grade.
Corn opened weak and lower. The selling
for the Phillips account WAS estimated ut
were much the same as in wheat. MAJ
opened llsII4c TO SsnAc down. at 6iiac
to zoe. Selling orders We're much Ill evil
dence throughout the session. The cash
situation was Gull. and the salvation OF
the pit rested, almost entirely on the COW
er!nE Of the heavy short accounts. After
the opening slump there was Il sharp reac-
ton to 6oIsc. slightly above yesterdays
close. The advance WAS lost. however, when
wheat weakened again. There was some
attempt at bUlling. and late in the session
the reaction brought a close only slightly
weak. ~sa &c lower, at 60i4c. lseceipts were
IL cars.
Oats had the same troubles TO contend
against as the other pits. There We're about
Gs.vo bu. sold here 10 close the Phillips
deals. Az in other markets. shorts were
The buyers. This pit. however. showed 4
considerable independence at the opening. |
May started a4nfsc lower at 45c. slumped |
TO 4il2c. but jumped back quickly to A. c, |
sc higher than yesterday. y good many |
traders who sold short at the opening !
were caught for losses, hut after the early |
excitement trade quietcd down and easCi !
materially. Bulls did not attempt much |
support to this market. May closed steady. |
lower at 45asc. Receipts We're 22 |
cars.
Rye.
Rye. the pit which caused all the trouble. |
had the hardest day of all. Yesterday the |
fancy deal which Phillips is said to have |
started. was raided by one or two elevator |
concerns. and at one time there was n SC |
Support had huoyed prices up, |
but the brokers became afraid of the Phil ,
lips deals. and had demanded the full 10 !
per cent margins. He was understood 10
be over 100000 bu. long, and when his
closing notice WAS posted at the opening |
May prices were i34c to sac down at &C
TO Gle. The heavy liquidation that began at /
once was more than this usually small nit |
could stand. and May dropped even to 6Gr.
AT TINS figure, short covering and long /
buying by n prominent house. which all
sorbed nearly all the Phillips stuff, brought
a reaction to sc. The close was weak, &c
at 63aic.