The Denison review. [volume] (Denison, Iowa) 1867-current, 1914-07-29
SKY HIGHVAULTS
IN WHEAT PRICES
Wild Scenes Witnessed on Chicago
Markets-Terrific Uproad Is
Heard in Streets Below.
FORTUNES ARE WON AND LOST
Transactions .TotalIing Nearly 1oo,-
100000 Bushels send Values High
.-One Man Cleans Up $4,000

Chicago, July 29-Expectation of
war between Austria Hungary and
Servia and the subsequent declaration
today demoralized the markets of the
world.
In Vienna the bourse had been
closed since Saturday, but there was
heavy run on the Austrian Savings
bank, the most important in the dual
monarchy.
In Paris the Commercial exchange
suspended all dealings in grains, SUI
gar and other commodities, and eX-
change on London and private dis
count for the first time in years was
not quoted.
In Berlin runs on savings banks,
begun yesterday. grew heavier.
In London, after the close of the
stock market, stocks tumbled on the
curb.
News of the declaration reached this
country while markets were in ses-
sion. With it came an avalanche of
foreign selling in the New York stock
exchange. Leading securities slump
ed from to 20 points and conditions
parallel in their intensity the do
nestle panic of 1907.
The stock exchanges of Toronto and
Montreal suspended their sessions.
On the Chicago board of trade there
was a tremendous rise in wheat, and
the widest trading in many years.
Foreign exchange was demoralized
and millions in gold were engaged at
New York for shipment to London and
Paris.
Wild Scenes in Chicago.
The widest scenes witnessed in
the wheat pit on the board of trade
here since the opening of the twenti-
eth century were precipitated today
by Austria's declaration of war against
Servia. Transactions totalling near
ly 100,O00,OO0 bushels sent prices sky
high, the net gains being Sh to 9A
cents. The stories of fortunes made
specific case was that of heretofore
obscure trader who actually pocketed
$25 ,O00,. which he had netted in an in
terval of exactly five minutes. :
Hundreds of spectators thronged
the galleries watching the traders
struggling and tumbiing about in the
pit. The uproar was plainly audible
in the streets surrounding the board
OF trade building.
Heavy Call for Margins.
/ Although failures were momentari-
ly looked for, there was none an
.nounced Tonight, however, margins
were being called for right and left,
| and to such wide degree that it
seemed certain that the volume OF
business tomorrow would be greatly
restricted as compared with today,
regardless of how high or low the
market might go.
The risk of specializing in such a
frenzied market formed strangely one
Of the elements that promised to
bring about speedy order, notwith-
standing the close today was at the
top of the excitement, with values at
the highest pinnacle reached. How
hazardous the situation was deemed
tonight was shown by the action Of
leading firms in demanding that all
customers put up margins of 20 cents
bushel on every trade.
The first throb of excitement was
given when the news came that quo
tations had been discontinued at
Paris. Bullish feeling rose rapidly
after advices were received that Ger
many would stand aloof from any
peace conference. Even after the
bulletin of the declaration of war
a sharp report that Servia had con-
coded everything asked. Dispatches
later seeming to involve Russia and
Great Britain carried spectators COM
pletely off their feet.
High margins were defended to-
night by those responsible. the ground
being taken that the present situation
was only paralleled by conditions in
the American civil war and at the
time of the Franco-Prussian war. Dur
| ing both of these conflicts variations
of Is to 20 cents day on wheat
values were not unprecedented, and
may yet be equalled, whether up or
down, If not far outdone.