Over Ten Million Dollars lost on a Wheat Corner.

Evening Star, Issue 7411, 5 January 1888, Page 4

Over Ten Million Dollars lost on a Wheat Corner.

As a correspondent reminds us we, "before any paper in England or the United States, predicted the crash and smash of the wheat clique at Pai Francisco." We did so at the beginning of August, and our anticipations then have been more than realised. The details to hand show that this "corner]' was the most gigantic commercial speculations of ancient or modern times, the loss being estimated at over 10,000,0000d01. William Dresbach, the now dethroned wheat king, was prepared to cope with the world at large, but his statement of affairs shows that his entire possessions were not estimated at 10,000dol. Ho had wealthy backers, however, and among these were Mr Charles Reed, a prominent farmer of Yolo county, who signed an agreement to protect the ; Nevada Bank of San Francisco against loss in Drcsbach's business relations with them. According to the book account Reed is a creditor of Dresbach's to the extent of over | 6,000,000dol; .or, in other words, the Nevada Bank accepted his endorsement for the sum named. As to the liabilities of the bank, the amount is not clear, but it is estimated at from 8,000,000d0l to 12,000,00d01. Flood and Mackay, "tho two bonanza ' men," are involved to a large extent through the bank, but they have still ample fortunes. The liabilities of Dresbach are approxi- ! mately put as follows: -Money borrowed on wheat, 1,855,454d01; borrowed from Nevada Bank, 6,553,111d01; losses on contracts, 300,000dol; losses on cargoes en route, 535,000dol; estimated other losses, 200,000 dol; total, 9,443,555d01. Tho schedule states that the security given for the first aggregate, viz., 1,855,444d01, will be sufficient to cover that sum entirely. The balance shows the amount of Mr Dresbach's actual liabilities, which, howover, may be reduced rather than extended. It is difficult to show how much wheat was actually dealt in, but Dresbach's statement shows about 70,000 tons to be in dispute, GO.OOO to have been hypothecated, and nearly 300,000 tons in the hands of European brokers. Taking the average price paid for this wheat, and allowing for cost, freight, and insurance, as well as the enormous difference between prices, which were as high as 43d0l 50c per ton, and are now as low as 24d0l per ton, about 8,000,000d0l at least of the loss may be accounted for.