Chicago Daily Tribune Newspaper, January 1, 1880, Page 9

TH THE YEAR 1879 Trade, Commerce, and Man= ufactures of Chicago for the Past Year. A Steady’ Run of Business During the First Six Months. The Last Half Active and Prosperous---The Au- tumn Boom. A. Forther, Inorease in the Volume of Businoss, and a Decided Gain in Valuos. The Effects of the Resump- % tion of Specie Pay- ments, With Big Crops in the West » and Unusual Deficiency : in Europe, A General Advance in the Prices of Produce and Merchandise. Our Receipts of Brendstuffs Foot Up the Enormous Total of 187,624,833, Bushels, Being a Decided Gain Over 1878: the Biggest Year in Our Previous History. ’ Tho Hogs Brought to This City Numbered 6,448,933; and 4,805,000 Were Slaughtered Here, Chicago Now Kills About Half the Hogs Packed in the Whole West. The Produce Trade Amounts to $253,000,000, and Whole- sale Sales to $341,- 000,000. e 7 J Our Manufactures Foot Up $236,+ 500,000; Being an Increase _ of $10,000,000. The Total Trade of the City Measured by $764,000,000 A-Gain of 16 Per Cent. tage kng These Figures Include Only the First Sales of Personal Property. ‘The history of tho trade, commerce, and manufactures of Chicago in 1870 1s a record of substantial progress, It differs, however, from thot of many preceding years in cory taining comparatively few items of interest which are not shared by s largo part of tho United States. ‘Tho history of tho elty sinco 1878, lin an industrial and commercial sense, ts practically tho history of the Great West, with which Chleago !s more and moro widely, If not more closely, identified with each suc- ceeding year. . Superficlally considered, the record divides inti :wo widely contrasted portions, Eight of atendy, plodding Industry in most nts, with little apparent reason to be any material change of condi- vay" om thoso of two or threo previous Tue ‘Thon a business boom which has few pirnilais In the history of settled commuhl- Les, except those arising ont of the strain of preparation for war. But the difference was only one of phenomena, The fires had beon smoldering for many months cra they burst ont into © flamo Inst September. Tho ‘country had been growing rich at on ‘rate which would Nave made specio resumption possible long before New-Year'’s Day in 1870 but for the foolish’ diforts of tho currency-tinkers, who kept'the public mind unsettled, Good crops in 1878, well sold on a specio basis, paved the way; nnd this was made possible py the In- creased wants of Western Europe tn bread- stuffs and -provistons. A still greater def- clency In thelr Inst harvest has made our transatlantic neighbors more axtenslvely de- pendont upon us than over before, It has given the Amorlean producer a powerful * voice In tho fixing of prices, the grentest in- terferance in which comes from the men who carry the property from the farm to tho sea- i ‘ This may bo regarded as the primary cause of tho business revival witnessed during the past year; but tho proximate cause was a largo inerease in the volume of our “ money,” leas than half of which ts of forefgn origin, Wé have recelved, suy, $83,000,000 in gold by Jmportation, nnd exported $12,000,000; have coined somo 840,000,000 gald and $24,000,000 allver, which approximately represents the product of our own mines; increased the yolunic-of, our paper currency 815,000,000, besides bringing to par the $070,000,000 in elrculation a year ago, and fetching out largo amounts pf specio long hoarded by private Jiidividunls, as well as that locked up In the United ‘States Treasury. ‘Thera has alto- gether been an additlon of 16@20 por cont to the qniount of “money” of all kinds actually inciretilation in the United States, In addition to the enlatged’reserves held by banks and by the Government. i : ; And this pecuntory augment—tnflation as ‘Wo may call It—pas not only caused the rot Yivpl ft pudiiess, but gauges the extent of rat oh that revival about og closely as it {s pogslble , toesthnate it for the whole cquutry,, The development of mining iindustrles’ to the Westward, and the spread of agricultural emigration to the Southwest and Northwest, “with the further ahrinkaga of cereal produc: Hon in Europe, have stimulated activity in ‘CHICAGO TRIBUNE THURSDAY, JANUARY J, 1880-SIXTEEN PAGES. some branches of trade and In some sections of country to a areater extent thon this, But there has been tardiness enough in other di- rectlons to redtice the total to. general aver- age for the whole country which falls within the above-named Hmits. It may surprise tho general reatler to note how closoly this de- duction fs borne out by the comparative fig- ures which follow,—made up, dby-the-by, without any referenos to the theory. It Is ensy enough now to philosophize on theso things, and remain poor. ‘Cho nien who wero wise enough to draw theso now self-evident conclusions in advance of tha fact have made money, Tho greatest losers were those who failed to read tho “algns of tho times,” and contracted to perform serv- ico or deliver property on tho basis of old prices, The same rule holds good with regard to prices, but not to the samo extent. ‘The av- ernge for tha whole year does not exhibit anything like so grentan increase, Tho big Jump In prices under the autumn boom ratsed the general level very much less than. niost people would suppose, The speculn- tive grade of wheat only shows an Increaso of 234 per cent, and corn actually shows a decrenso of 2 per cent in the averago price per bushel, ‘The smaller grain markets show an increase of 9 per cent in ryc to 19 per cent in onts; but even including these, tho average price por bushel of all the bread- stuffs received in this city during tho past twelve months was only a little above that of tho préceding year. A nenrly similar state of affairs exists in provisions, though the price of “the whole hog” was about 434 per cent higher. ‘The average quotation for pork was advanced about 10 per cent, by an enor- nous speculative movementin thatarticle, but lard was depressed no less than 63¢ per cont by the fact of unusually big stocks, and meats were 13g per cent lower in sympathy, Tho advance was more marked in other descriptions of prod- uce, raising the general = nyernge. Tho advance In prices of all kinds of -prop- erty some twelve months ago is a little moro than the increase In the volumo of our moncy: elreulation; but tho average Increase for the whole year mny be roughily estimated nat not more than 7 to 8 per cent. It fs plensant to be able to record the fact that this city has increased the volume of her business transactions more than tho average of the country. *Twould have been well to Nave done equally well; to have done better proves that Chicago has taken still another step tn her triumphal march towards the proud position of the world’s comuiner- cinl metropolis. Our figures show that wo have gained 16 per cent th produce, 21 percent on wholesale trade, and 4.4 per cent In our manufactures,—making a total of It¢percent. It may be interesting to compare this with tho increase of about 80 per cent in the Clearing-Ifouse returns, which aro usually regarded as an accurate index to the relative volumo of trade. Tho difference is chiefly due to the vast increase In the volume of speculative trading in produce during tha autumn. This does not figure in our estl- mates, Which only include the first selling cost of all the material bought and sold here, and take no note of the number of times the property may bo turned over while in tho elty. A small part of tho excess in clearings is owing to tho renewal of: confidence by many men who were ‘their own bankers in 1878, being frightened by the bank-fallures which had‘been so frequent. ns to become nlmost monotonous, though not the less dls- agreeable, : It should be noted that, whilo our quota- tions of prices, ete,, for former yenrs are given in currency, all our totals used in comparison are reduced to a speclo basis. We have changed our figures for 1878 in two or three eases, as a result of information gained after our Inst Annual Review was pub- lished, but the differences In the aggregate aro not important, ono item’ nearly compen- snting for the other. In tho Introduction to our Reviewyof 1878 we remarked, “Thero Is Ittle room to doubt that we are now on the upturn in prices; on produce, other stocks of merchandise, and renl estate . . . Our prospects were never thore bright.” ‘There certainly Is not at the present tlino less ronson than a year agoto anticipate prosperity'in tho future. All the conditions point towards 1880 ns to be amore actlve and prosperous year for Chi- cago than any that has preceded it; though it {8 possible, and perhaps desirable, that the fevor-heat of speculation experlenced Inst autumn be toned down Into 1 more sober’ activity during tho ensuing twelve months, PRODUCE. The produce trade ofthe past yenr has been a very netive one, mitch more so than that of any previous year in our history; tho volume of recelpts and shipments aggre ented 5 per cont moro than in 1873. In that year Chlengo made a big stride forward, the causes of which were fully dotalled in our, last Annual Review. Sho then passed the ling of 100,000,000 busliels of brendstuils and 0,000,000 head of live stock, which had for a rathor long thine scemed to be the Iimlt of her capabilities, And she passed it with abound, eclipsing by mora than one-third all: former efforts In handling and controlling the produce trado of the Great West, ‘That tremendous Increase was widely regarded as phenom: enal outburst of activity which could not be ropeated In this generation. In actunlly sure passing It during 1879 the ¢ity ling done much nore than was genorally expected, and It ts notaworthy that the high-priced broadutulls show © big increase, Provisions apd most other descriptions of produce haya rolled in upon usin much greater yoluuna than tho previous year, so thut the grand total ls again bigger tian ever, 7 * ‘The tendency of prices was again to alow range: during the first three-quarters of the year. ‘There was a widespreatt disposition to regard the short side as the safo side, the principal check being that administered by the Keene investment of the previous winter, “Big crops of everything, overywhere, and prices will go down lower than you ever knew them before,” was the bellef of the great majority of those, who try to form an opinion about the matter. And prices kept down till the speculative world was slowly mado aware that Western Europe was atart- Ungly deficient In her crop yield, a8 8 conse- quence of unusually bad weather, ‘Then thoro wag 4 reyulsion, and the altered tono of ‘popular sentiment was go decided that it sont prices up high enough to make the year’s averago a large improvement upon that -of 1878, ‘though there was no falling off in quantity of the principal farm products, . Our produce buglness was widened out materially in character during the past year, it notin apparent volume, The ‘merchants of this clty have controlicd more‘and more the movement in the country around us, and the Old World Sn the faroff East, The con- sumers of our provisions and breadstuffs wwho-live on the Continent.of Europa haye ceased to’ regdyl Liverpool and don as the best markets In which they can buy, and so mundo Fi Poluts to glip direct send thelr orders to Chicago. The buyer in English ports has learned to look beyond our senbourd for the materinl he wants, and reeogulzes tho merchants of Chicago ns tha men who command tho outpouring of the horn of plenty over the nations, As a natural consequence, the producer In the West has learned to look upon them ns Ds best customers,—and not seldom his only ones, other men being unable to compete with them. Under thesq clreumstances, the passage of tho material Shrotg this city, or around ft, becomes a secondary considern- Lon, to be determined by the current and con- current conditions, ‘The wheatof Michigan and Indiana was forwarded directly East; the corn of Central and Southern Mlinols has sought the cut-off lines; buts Jarger propor- tion of ft than ever has heen moved on orders sent from Chicago, The great bulk of all the hogs In the West come here, heenuse of our vastly superlor facilities for packing and carrying; but our merchants have not hesi- tated to establish packmng-houses elsewhere, when more convenfent to deal with the ma torial there. ‘They practically handle about three-quarters of the vast hog crop of the West and n volume of cerenls fully equal to the total export surplus of the United States, Very few persons outside the trade, and not all of those engaged in It, have more than afnint idea of the part which our Jeading operators take in the produce movement, Most éf them are noted fn the directory as commission merchants or brokers, and from this it has been widely Inferred that they only do business on orders from other parties, ex- cept as they may speculate a little on their own account during the lulls of activity in the order-lepariment, It is true that the majority belong to this class, but thera are men in the ranks who move the world. Chi- eago eash, as well as Chicago brains, ts en- gaged in tha business to a very large extent. ‘The nen of other cities, who send out cireu- Inrs stating that they are ready to do other peonle’s business, and then wonder why ft does not come to them insteni of going to Chiengo, do not understand the way in which our folks do it. The produce is sent hera by men who are operating on, or In conjunction with, Chleago capital. Fully one-elghth part ofall the grain and live stock that comes here is paid for here In ndyanco of its ar- rival, and some of it months beforehand, as in tho case of corn eribbed in the country during the winter. It is tho property of tho graln merchant in this clty is completely as if he had grown It on a farm of his: own, free from mortgage, So, too, 9 large propor- tion of the produce is forwarded from this elty by the owners, to the people who distrib- ute It to constmers. We have commission merchants hers who do 9 large export trade, both in grain and provisions, But a very large part of the whole is shipped on owner's necount. Our two largest packing firms send much of thelr stuff to Europe ns thelr own property, and thore are several other finns who “hardly ever sell a pound of their property on this market, except In a speculative way, for the surpose of preserv- {ng the balance of trade by lessening ship ping risks. Nearly the same state of things obtains in the hand|ing of grain, Its largely bought here by nen who sell [t abroad, and they sometines hold it here for weeks, or even months, tll a favorable opportunity of- fers for sending It to Its destination, But thoy also buy in the country, as well as here, and send the grain forward by that route which is the cheapest for the time being, so that tho volume of our recelpts and shipments isnot by any means necessarily a gauge of the magnitude of the business which Is ne- tually transacted here. Tho careful observer cannot fail to noto that the character of tho produce trade has very markedly changed In this respect within the past two,or three years, and especiully during tha: last twelve months. It §s being controlled more and more by capital, and left Jess and less. to tho mercy of mero opinion unbacked by ensh.: ‘Till recently the produce business was chiefly transacted “on the scalp,” the buyer of to-day. holding himself ready to sell to-morrow If a small profit should present Itself, Tho tendency now. is to buy grain asone buys real-estate, to hold, —though not always for so longatime, Tho dry-goods merchant buys ‘his shectings hnd calicoes with intent to sell them ata price which will pay him a profit, and he is willing to hold them till buyers want them at that price, unless he should become satisfied in jo meantime thot altered conditions render it prudent to sell for Jess, ‘hoe big eapltal- ists havo showed that they can. buy pork and Jard, wheat and corn, in the: same way; and thelr example hgs been followed by smaller operators during Inst autumn, who hang on with bulldog pertinacity through mther wide price-fluctuatlons, determined to, walt till the stuff should be wanted at better prices, They have allowed their ‘money to lic in the deal ns an investment, instead of a mere gambling operation to be dechded by the turn of acard, BS ae s ‘fhe course of events during the past four months has shown, however, that capital is nat king untess accompanied by brains. Some of our largest moneyed mon have been tho henylest losers by the autumn boom In produce, ‘They guessed wrong,-and tho er- ror involved n loss of much ensh. Indeed, the mast notable phenomenon of the recent movement was the fact that so many of the Dig men wero on the wrong side of the deal. And this is the renson why there were so few fallures, Tho men who Jost money were able to bearit. Not tho least noteworthy polnt in tho history of the movement Is the fact that capital has lost prestige as well ns gained It. Men who were looked up to for years us able to dictate the course of prices have proved to bu only mortal, Dagon has fallen prostrate in the mfdst of lis worship- ers; the charm Js broken, ‘There ls now less of anthropolatria on the Board of Trade than atany provious timo in a dozen years past, though individual power fs not wanting. The “milking process” Is not yot a thing of tho past, ut 1t can searecly ‘be counted on, beforchand os a sue- eess except in the. provision crowd. ‘Tho folks who deal in pork prodyct prove themselves to bo pork reachers two or three times In the yearonan average, ‘The rope goes round thelr heads go smoothly and si- Tontly that they aro not mware of it till It, he alns to Ughten; and then they are Ilke the poor ox Whose nose goes down to the ring slowly but surely, amid futily efforts to ovade tho finishing stroke, It is well known that a great circlo drawn on the globo from Chicago to the South of England would colnelde with tho Valloy of the St. Lawrence. ‘Ihe consumers of: nearly all our export supplics, ‘both of proviaions and breadstiifs, Hve north‘of that ine; and all of those hr Europe are north of tho tatl- tude of Chicago and Boston,.except a fow Inhabitants of Italy, Spain, and VPortu- gal, Honce, ‘tt would appear, as has often been urged, that the St. Lawrence is the great natural ontlet for the produce which the Old World buys from the New, But the Canadian youte has not been a favorit ‘one with our shippers during the past year, Thar Juke business las been chiefly done by way of Buffulo, chietly because of tho greater certainty of belng.able to obtain ocean freight room at American ports, Our slilp- ments to all the lower-lake porta were ght during the last scason of navigntion, and those made wore chiefly for distribution to Now-England polnts. yin. Lake. Champlain and fron Qawego, Tho grain trade of Mont- real shows an increase during the past year, by regson of more Jutimate business rela- tions betweon that city and Detroit and ‘To- lego,—the direct Commueuenee of a ble wheat crgp in ‘the States of Michigan and Indiana, a movement from ‘those States dirertly eastward was asslated in the luster part of the year by more nearly equal local rates ' than‘obtained formerly, Tho rallroad mag- tas seeni to have been afraid of legislativas: Interference If they diseriumlnated too atch, hich enabled coun! tnd reallze good prices, Eg as compared with those ruling at Chicago, though speecttation often kept our quotations: aboye the point at which shipments could be ninde on stralght terms without loss. It fs notorious thatthe Liverpool quota. tlous on wheat and corn are almost always to Uhe disfavor of shipments, and In this fret the bears have a standing argument in faver of their position that prices here are too high. But there are several things whieh make it sdimicult to Insitute a direct: comparison be- tween this and that. {0 the first place the Enaliah people have no standard grades a3 wo have. Their trading ty ull done by sam- ple, on the judgment of, the buyer, atid [tls hot an infrequent ocenrrence that two or more buyers will differ by several penee per quarter In their eatiinates of the milling value ofa alven parcel of grain, The quotations sent hero a derstood to give muze from the poorest quality of No, 3 spring to the best No. 2%, for fulraverage No. 2 corn, ete, But it fs well known to people in the trade that very Jarge quantities of our redecte ed and new mixed corm have heen sofd in England as C hint our No. 3 spring, sometines cleaned a little on the wa: to the sendoard, has done duty tn the British markets for months lonelier ny alealght Amerlean No. 2, For this and some other reasons forelan buyers will not infrequently send orders here naming figures which aro 1@23 per quarter above the current quot: tlons, “Sone of them say that they could not often buy a Inrge round lot nt those quota. tions, ns prices wotld advance on them if a demand were suspected; but the inajer rea- son undoubtedly ly that above indicated: they obtain a better tunity of graln by sendin, orders ton reputable firm here than ly offered in the London and Liverpool markets as aur No.2 We have been assured by parties In the trade that It iso common thing on the Amerlean seaboard for an Inspector to re- ive a sample of wheat barely equal to our No.3, with an order to “anak equal to that? and the mixture on its arrival in Europe. But were no such difference In quality, there are still conditions which often permit export when quotations are considerably to the dis- favor of the operation. For fnstance, the finporter who sends the order here may do hig own brokernge, and this save, the ex- pense of about 23 6d per quarter for com- missions, which is the least allowance made here Incomputing the cost of buying here, transporting, and selling in Liverpool or London Ageia, ocenn steamers cannot wait for cargoes, and finportant concessions are not seldont offered by agents when a toad ts wanted right. away, Which engbles the com: inission-merchant here to fill hks order at eonaldernbly below the nominal cost of -exe- cuting It. There ts no such bonanza in the trade ns sng pictured a few months age by a Philadelphin broker who thought the Liver- pea quotations on. grain were for a bushel nstend of a cental, by which he figured out ft profitof about 40 cents per bushel, But the bustness Is proseetted ona large seale fn spityof quotations which would soon bank- ritpt every one in the busine they were literally correct, and yet the people engaged in {t make money. Urgo, the quotations, like some, other things, “are not what they seem, ‘Tho following. figures, may be af interest in showlng the nonitial position.of the wheat exporter during the past. yeu. We give for the 16th of each month (or: the: 1th when the 16th was Sunday) the cost-per ba to put No. 2 spring free an board ‘and Insure It; the “official? through freleht-pur 100 ths to Liverpool; the cost per cental ex-vessel In Liverpool; and the reported market In that elty, “delivered terms,” of the same. dates, Contracts. were fregnentty. anule below of- Aclal figures; 20e-being taken privately In une: IN LIVERPOOL. Month, Cost. Quoted. aBnasis, =| 2yMaut fis 100 Bs kh OG 88 OGD Us. 78 OGG Rs RL 0 Bs GNGD Pa Td 60 jits 1 dl0s Hitb10s Rd GO 1103.10 1303 GdGhIs 101 Gissills Od] Vs Mt@lis id Much complaint was heard in the early purtof tho year from receivers of grain in regard to the Inspection. ‘They eluimed that it was “too lileh, and did not always sue- ceed in obtaining a change of grade on ape pealing {0 the Committee. The complaints were loudest and most frequent on the early inepection of tho new cropof wheag—n great deal af: which was passed as No, 3 -almpl: because It wasn litte damp, or not re ably clean. ‘Chis was not all loss, however, The No. 3 was eagerly sought for by shitr pers, and they paid at one time within de per fe ni of the prices current for No, 3. ‘The dit- ference afterwards widened to 17@18e per bu. The feellny was so strong that the Committee on Appeals resigned, and tholr successors wero appointed about three months ago, Since then there lias been less -com- plaint, but this Is not necessarily due to a changes {n tho inspection, | Tho rallroad officials have imposed n tax of $2. per enr on every Jot of grain held over for anpenl 4£ tho appeal be not sustained, and this, with tho fees of nbout $5.00 per car-load to be paid to the Inspection Department, is a strong argument in favor of not appealing, exctp In cases where the Inspector tins evi- dently made a mistake, ‘The imposition of this tax by the rallroad SOL al 8 belleved to be unlawful, but people have to submitter loso time by appeal to tha Courts, We note that a rather large quantity of wheat In- spected here into grades which the recelver thought too low, has been sent to Milwaukeo instead of being of Ithas been inspected high enough there to pay for the trouble of sending {t thither, As many as ten ora dozen car-loads in ons day have been sold in Milwoukee as No. 2 when it had been graded No, 8 here. ‘This fact certainly speaks well for the excellencs of our grades, and justitles the higher opinion of them reeently shown by’ European buyers. dt is remarkable thit most of the wheat appealed during tho past three months has come from Nebraska, aud two-thirds of that which has been appealed proved to hive Ween “ pligeed,” gond grab wing placed on the top of poor stuff. ‘Ship- pers in the country ought to know that this attempted cheat Is detected here every thine, and the grain invariably elnssed as belonging to the poorest grade found in the car. Pare ties In tho trade say that most of that poor grain tins been made poor by the want of nuturing and yentllatiig in the stack, which is possible only when the grain ds cub with a faly length of straw, They sy, the grain fs cut with “headers? and that the evil is so great that n heavy penalty should be imposed. on all parties who manufacture and sell that eloss of farm machinery, Thore has bean no complaint of moment heard ‘against the Inspection of provisions, That department works smoothly and well under the new reeline, ‘Che registration both of grain and provistons hits progressed without a known snag, und aro universally: conceded to bo valuable gafeqnatds to the Integrity of the trade. A Tittle more neen- miey In the reports of stocks In store would leave Httle more to bo desired In cither de partinent. Much complaint has been herd about the senrelty of rallroad-cars, and the grumblings of would-be stiippers and receivers have not seldom been accompanied by insinuations to the effect that railroad officials were Inter: ested In keeping them back so as to check tho voluine of receipts, Our proiuce move; ment would doubtless have beon greater had cars been fitrrnished more freely, but thore is no Frou for the susplelon that parties cone trolling the cars have not done thelr best tokeep thom moving, ‘The rallrond com- panies lave not Increased thelr equipments fo Keep pace with the growl of the country, ‘There ig not onty more stuff to be moved now than afew yearns ago, but the average: distance over which It fa hauled tins Increased with the speed of agricultural alevelopinent westward. Dut there has also heen a great delay of enrs at hintaan polnts, "They have stood on side-tracks In Eastern elties by already full elevators to relleve thom of thelr loads, ‘They have had to. stand hore waltlng for athers to be switehed out of tho way, ‘Then the cars have been longer in returning, becnuse they were wanted to carry. more Joads {nto the country, as well as from it. ‘the prosperity of the past few months has enabled the farmers tobuy more merehandise, and their orders for building materials have exhibited a large inerease, Hence the curs tro hot seldom detained here a weok or niore to be loaded. Probably few of the grumblers are aware that thera Ls only one rack communteating with the lumber dis trict of this city, and’ thatthe engines of dif- ferent roads lose a great deal of thine in walt- ing for the chancy to haul thelr own cars over that golltury palr pf tron rails, ‘That thls should be so is 8 disgrace to the elty, but it is not the less a fact, ‘The «lelay of cary at Eastern cities because ‘of Iinited storage’ fucilities is orying evil, warehouse propristors in the inatter of stormge charges hus rn simply outrageous. Tho different eltles on .the seaboard have outbid each ‘other in ef- forte to seoure the export trade of th appealed here, and most of. the thousand for days together, waltling fur | th q Got. 13. 8 great | No do their West, and, haying obtained st, th %, iy he golden worst to KI the goose that lays eae The privilege of carrying wheat through the month of Noyember fn Walt. nore was charged for at the rate of 10¢ per bu, the greater part of which was for stor- age, The excuse was that the warehouse- inen wanted to make. the owners move the grain, Fortunately our warchousemen sre prohibited by: Jaw from Inerensing their charges, but hey never would have imposed n tax of 234¢ per bu for ten days if there had been no” Warehouse Jaw. “They had. the chance some fifteen years ago, and piled np the gral Jn alead of f eds outsite the elevators In- asing charges inside. They y males large permanent adcdl- storage room, The capacity of the public grain ware honses (the elevators) fins remained the same for several years past Ul n few weeks ago. The 00,000" bushel roonr provided in the rebuilding after the Hane fire was found fully ndequate to hold all the grain ordinarily here till the wlater of 1878, ‘There was their alittle pressure here, due to the accumulne tlon of whent by Keene, but no serious trouble fn this respect. A few months slice it appeared probable that the tn ising rain trade of the elty, and the chan: 1 the mode. of conducting It whieh had been Introduced byeanitallste, would necessitate the holding of more grain this winter: than ever before; and provision was made for it The new elevator of Armour, Dole & Co. has a nom- {nal capacity of 3,000,000 bu. This gives a total of about 17,000,000 bu room after inne. ing a little allowanee for overstatement, and not taking into account a building on Grove street whiel will hold sone 600,000 more, but will probate berun asa private storehouse. swe known, hewever, that the above-statedl quantity of grain could not be housed atone tho without filling all the bing and flooring over the railroad tracks, would be diftentt to work with more than 18,000,000 bus ant we have fully that much in store here now, long before the winter 1s over. ‘The business of gratn warehousing has deen n very profitable one, in the aggregate, during the past year, tical the protit was very unequally “distributed. The elevators nenr ‘Twenty-seeond street have een com- paratively negteeted, while the others were ited to overtie ving. About three-fourths of the grain received here has gone Inte eleva: for, paying first storage. shntey: of bus and more of It than usual has ond storage, the ordinary proportion being aboutone-sixth, ‘The recelpts of the ware: honsemen have been not fess than $1,490,000, ‘The business has been coutducted without much reason for fault-findIng. Vessels were Joaded promptly, 23 a rule, and no bet grain was turned out to shippers, nor was any posted as hot, the grain being generally in fou condition when received, ‘There has been sone outery. about cleaned grain, and one palr of houses was diserin- inated nzainst at one time on thaé account, but there is good reason to believe that the Ink of the erain eleaned in this elty and vie cluity hns gone vast on its merits, and not been put into the elevators along with other Ufo per paid see- grain, ‘There has also heen n large increase, nearly one quarter, In the capacity for storing pro- visions, ‘The new house of 2, D. Armour & Co,, 800 feet square, and two stories high, will hold about. 100,000 packare: ‘The angle: American Company has ereeted a building which will hold some 50,000 packages, ane 10,000,000 to 15,000,000 pounds of meats. If necessary, our packers and operators, could: now find room for 300,000 barrels of pork, 400,000 tierees of Laird and hams, and 00,000, younrls of meats; or 140,000 tons of stuf, the praduet of nearly one aida quarter millions of hogs, And this makes no allowance for untold acres of pralrle room whieh are avail- able during the cold weather of the winter Se. he regular business hours af the Board of te six Ineluded between 9310 no, DL, exeept Saturdays, It has. been dificult to keep: the trading Within these Imits, unless in very colt weather, and the speeulative boom in nuttin led ton great den) of this irregular trading, ‘There were eurbstone gatherings in the carly morning and the Inte afternoon, at whieh large quautitles of grain were bought and sold, and quotations often under- went considerable change. This obliged many members to attend wiwillingly, as the range ,of prices was telegraphed far and wide, and understood by many outside tho elty to be a regular market. Orders were forwarded on tho strength of these quota- tions, and sometimes could not he filled on ‘Change at those prices. In any event, the cominission merchant was obliged to be on the wateh, and ready to brenk a. rule of the Board when occasion offered, untess he pre- ferred to run the risk of losing # customer, ond perhaps sustain one - side of. lawsuit, The'fact that the Board of Eride does “not enforce a contract mnde out of? business hours, ov that the Board forbids such contracts ta be made, —hna | iittle weight with oa non-member, if he knows that scores of inembers do trade, and make aud maintain a market, And 50 the business day has often been Tengthenad out to the hours of darkness, and scares of men kept on tho gut vive, with their correspond- enee delayed, us long. as a few frresponslble ones might choose to hang together and offer to Duy or sell, Itis unfortunate that the President lias persistently declined to clther interpose his authority and Impose a fine, or to ask that the rule be rescinded. At present: the Board {sina very anomalous position, and ought to get out of It as soon as possible. ‘The room upstairs should be kept o; me] Jong as is deemed inecesanty: to transact the business, and rigorous polles pawers be ex- erclsed outside. ‘Che curbstone guthorings are not infrequently given up to transactions which are forbidden by the State law, and that fact alone should be decisive as sn argu- mentin favor of action. The figuity of the Board, no doubt, suffers materlaily from the silent permission, to break the laws of the State by dealing in puta and calls around the Chnimber of Commerce Building, . an effort was mady during the past year to introduce the cental system of trading In rain, which has been found to work well In Gin Emnetsco and Liverpool, ‘The attempt was n failure, chiefly beenuse, the warehouse Interest opposed it, Tho, State Jaw names certain figures as. tho maximum rate which imay be cliarged for the Borage of groin, and it was found that a silght reduction of. thoso rates would be necessary to make the figur ing simple under the cental system, | ‘This seems to have been the chief reason for urg- Ing the prerlle objection that the State law prucidtes for the clinrglng of storage on the bushel, and that it would be on infraction of the law to charge by the cental. (fie ware- housemen were not quite so sensitive a few years ayo In regard to taking out leonses uns der the State inv) Tho opposition to tho vental system ig all tho more to be regretted, as the attitude of the trade here has probaly prevented it~ from belng now in use In other cltles, It amay be remembered In this connection that our dealers In provisions have long bought and sokt Inrd and meats by the 100 tbs exclusively, and it ls notorious that onr grain 1s actual handled by welght and not by measure, welzht Is divided by numbers, which are dif | ferent for the diferent cevenis, In order to obtain the number of “bushels, which are not bushels after all, but certain weights of grain that in nearly every cnso world mens. uro out more than the stated number of bushels. ‘Lhe objection fs entirely artificial, It is much to be desired that it will bo aban- Honeds and ae cental system adopted, dur- ig the ensuing year, hiarters Wwero made Inte in danuury at 6e for corn to Buifalo, tho grain lying In vessel hold during the remainder of tha winter, Tho season opened May 1 atde for carn, fell to 2170 at the close of the month, and ranged at Ty@l¢e during most of June, touching per- aps Uge early inthe month, After duly 10 the rate advanced steadily, closing at ae e About the middle of August rates \Woro he, then off to 4c, and ranged from 44 auc in Beptomber, rising to 7 0 on Oct, 20 (WIth 8340 bid for steam room for wheat), then fell off srantually | to dlge lute In November, closing at about Ge, ; Canal freights from Buffalo to Now York opened at Se for corn, wenduindly declined, touching 3h In the Inst of ‘une, thon advanced, renehing Le lata In October, Dur tng November the rate wus 6@0}¢c, closing at ye, “io following shows tho TH zates, en yy BI corn by sall froin Chicago to cant from Buffalo to New York, for sovera! TBM, 423 910 The changes in the ‘published’ railroad tarll€ during 1870 are given below, the rates being for transportation to New York; ih) Boxe Take Rises oe meats, SSREBSS “eSREESS | SaSREEE ‘Tho rail rates given above were very freely ent in tha first half of the year. In February fiat was tnken to New York at 9c per 100 by, andl the rate was very irregular in te inonths following, being at the close of May 103 on grain and boxed meats, and 15¢ on bulk meats, . It was rumored that specin contracts were made In May and dune at 7@ alge to New York. Rates advanced stenilily after June 2, Grain was taken to Liverpool in the early partot the summer at 30c per 100 Ibs, nnd bacon absitge, The gratn rate advanced in August to Sde, and later to 5c. ‘The higher rates of lake freight obtained during the past season of navigation wero inst Welcome to the vessel-owners, who had searecly been able to make expenses for five years previously, ‘The advance was a gen- ‘ine surprise, too, considering the concerted effort inde in the spring by the railroads ta break up the vessel Interests, No credit is dueto the rallroad managers forthe unusually favorable terns on which the prodtets of the West were carried to the consumer. ‘The concession appenrs to have been only part of a plan to strengthen their own hands by crushing out some rivals, and pringliig others to terms, under which a grand combl- nation might be effected that would enable them to take a surer grip on the commerce of the country. How well they succeeded is shown by the autumn tari, which was strentiously maintained, though confessedly double the figures at which’ the railroads could do business at a fair profit, The ex- peices of the past twelve months has sure- y furnished proof, if any ¥ ve wanting, that the water routes to market are our great safeguard against the Tapaclty of the rail- roads. Without a Iake marine the onty eheels on railroad rates would be the possibility. of leaisiative Interference, ‘Tho Iinols & Mich- igan Canal is apparently an fusignifieant channel, exeept for drainage purposes, but it J all powerful In regulating trelght rates to Chieago. It controls rates on the Rock Island Railroad, which runs near ft, and tha tariff charged on that road deterinines the frelght charges on com- neting lines. ‘The canal really governs rates of transportation aver a much wider area. "The vast surplus of grain ratsed In the yal- ley of the Upper Mississippi would | he slipped down that stream, and a part of It find Its way up the [linols River and along tho canal [f the railronds dtd not carry It, as ag Itean be forwarded by water. important ‘The water gheaply The Erie Canal holds an equally place ht the economy of the Enst. routes have made possible the de of the Great West, and are equal now ag when they were the only mean inland transportation over long: distanees, They are vitally essential to the commercial prosperity of Chicago, whieh but for them would soon be reduced by the diserlminations of the ruilroads to the poor dignity of a way- side station. ‘The policy of the railroads fn reward to this efty has been almost uniformly of the ettthront order; and the fact should never, never be forgotten, PROVISIONS. THE MARKET FOR 10G PonucTs has been quite irregular, much more so than usual, though the trade now spreads over the whole year, with no intermission on nc- count of hot weather. The market was rather tame fn January, butn little more Hfe was infused into It the next two months, thotgh our stocks were unpreeedentedly large, every available foot of storage-room being full about the close of winter, Hogs were plentiful and cheap, and the packers operated freely in fall falth that: the product woukl bs wanted. But the de mand was not equal to the supply, and the spring production was somewhat lessened in consequence. ‘The people who believed that a big decline must occur In the summer were numerous enough to develop a heavy short interest, aml they oversold themselves on pork, Asa consequence, they got squeezed nlitticin April, A fair speculative Inquiry followed, mostly on Southern account, and the market was very steady during May and June, with no pressure elther way. Tho first rent excitement of the year ovetrred July 10, when the country was startled by the report that | * THE YELLOW-FEVEI lind broken out ip Memphis. Coming atsuch an early dnte, it was feared that the South would be swept ns with the besom of destruc- tlon before the frost season, aud there was a genera! panic in provisions, as most of the pork and a great den! of the meats here.were belng carried for tho Southern -trade. -Dur ing tho 10th and 11th the market broke about $L.374¢ on pork, 47¢c on lard, 37}¢¢ on shoul- ders, and nearly 85c on short ribs,—tho Intter selling down to 23,95 for August, equivalent to $3,02!¢ spot. The collapse broke nearly all the Southern people who were connected with it, caused some severe suspensions here, owing to inability to communicate with soine principals in time, and the unwillingness of others to forward money anid so much wn- certainty with regard to the future. A good many local operators lost heavily by being forced to cover on tho brenk, and consider- able sums of money are yet owed here on those deals, some of which will probably be owing at Doomsday. Many complaints wero heard about the Punic filth. cls- played by Southern men, some .of whom were'abundantly able to pay, but would not, The market continued tame, and tended downwards for severnl weeks afterwards, chiefly because of fears that the fever would spread, Pork declined to $7,773¢ In August, and this fuvited investment by a few of tha far-sighted ones, By tho time the market had advanced a little above $8.00 they hind it under control, and the result was « cormor in October, the top settling price on which was about $15.00, though the market was quoted as high ns $13.50. ‘Tha article known as “short ribs” was taken hold of about the same time, but the resulting squeeze culml- nated earlier, the settling prico being 6c per ‘Ib on the September deal, Thore was an- other pressure in Octobor, but it was nota “gqueezo” in tho aecepted sense of tho word. ‘Thore wns a genuine scarcity of stort ribs, which caught the short operators at about $5.75@5.80, This wos caused by a much moro VIGOROUS SOUTHERN DEMAND than had been looked for. In fact, tho South never took so much us last year, Tho yollow fover did not spread beyond the outskirts of Memphis, after all. The South as a whole was prosperous, with big crops of sugar and rice, and a fate yield of cotton, and thoy took our pork and meats twieo as freely ns 171878, and continued to do so into the cold weather, By tho close of October the stocks of short “ribs had been exhausted, not only here, but {u about every other Western city, The de- innd bad melted away tho big stocks of spring, and absorbed a current: production nearly equal to that gf tho previous summer, Of courgy Europe had also been taking free- ly; but the great Increase In tho consumption was domestic, . ‘The pressure in pork and meats during Oo- tober wag colneldent with the autumn boom In grain, aud porhaps helped to bring that about, Whether or not, tho return of “ good times” stlinulated a cnormous speculative demand for pork products, which Insted into November, then lagged for about no week, and sturted up afresh in the latter payt of tho month, when the sales of pork oxcoded 100,000 bris por day, and other product was active In propartion. In December the market ruled still higher, and generally active, but with an unsettled tone, as many operators thought prices were too high for safety, and some packers tried to depress quotations, The middle of the inonth prices were unsottled bya nearly total suspension of work at tho packing-houses, and tho resulting decline in hogs, while tho demand for axpart fell off to a very low pont, But the speculative spirit was stronger than ever, belng excited by the roport that the hog crop was £00,000@800,000 head Jess than the provious year, nnd carried the market up to the Ilghest prices of the year during tho cure rent week. It closes rathor weak. TUE ENIGMA OY THE YEAR has been the lard deal. Capital invested vory largely In the article Jast winter, and carried itthrough bravely, but without making any headway except in the wrong direction, till utuimn, ‘There were rumors at intervals all through the first elght or nine months of eat, sometimes to effect that a squeeze Yas In reparation, and ab others that the whole th: was to be lef BO, Perhaps both 9 were false, beenuse each was alike Ampos: And sible. ‘Chere was too mich for a corner, too much to be abandoned without a yery severe loss. In November the stocks of dard in this country were estlinated to bo nenrly 200,000 tlorees greater than year pre- vious, and recently the prekers ld ‘not trim their meats so closely as usual, which hag. diminished the avernte lard yield thus fare But there ts plenty of it, gepretalty na tt our be made in untold quantity if a domand be. found to exist for thenrticle, : ‘The volume of outside spéoutation much greater last year than {n.1873, It was, perhaps, 10 per cent greater provions to Se) tember, and some 30 to 50 per cent bigger at-- terwards, ‘The great mass of the people’ have been thinking about [t, and not nto have gone into the deal as nn Investinent, ‘They reasoned that the lowest prico of lar : In thmes of depression, was about 5! fc pe pound; that 12!¢c for lard and 815,00@18,06 per bri fox pork wers not unusual prices bes ‘aro the War, when things were Supposed i to be on a gpecle basis, and that Otc forone - and $10.00 for the other must be cheap now. It quaintly sald hy 0 focal authority w few weeks ago that there aro no bears tn rovisions, except those who would like to invest aba {ite below present prices.” It is this speculative feeling that keeps up the produetion of pork long after meats ara. found to, be much the cheapest to the con- stuner. Two hundred pounts of meat pny (say) $1.60 freight to distant consunicrs this winter if shipped loose, It boxed, they pay. $2,003 while lf barreled as pork the freight at the same rate (for a pack- age) Js $2.50, This alone ts 110 small consideration; but there is nlso the poine that salted meats are relished best by the great mass of consumers, [t {s nlways & question what shall be done, with our surplus pork. It all goes off, however. What is left after the supply. of the lumber Tegions and ship-messes {4 elther taken out and smoked to he sold as strips or shipped to the West Indlos, and what Dame Partington, would have called “other contaglous ports.” OUR ExPonts TO EUROPE continues to inerease; but the augment is chivtly in the British Isles, where the old: tine prejudice is gradually wearing away. The Continent of Europe lias about held ice own in the sections formerly supplied, an there has been a slight Incrense of territory in the direction of North and Enst.. The are partly fed by American hog meat now ex tends some £00 iniles from the coast linc. Tt may be somewhat contracted by the highen prices now ruling, as the chief recommenda tion to many tn the intertor lins been that hog meat was cheaper than fish. : Tho sups, ply of Europe in 1878 was largely effected by: pushing things, placing the property on snlq to retailers, “Last year u little of the specu= lative spirit was apparent among European: traders, aud some of thom bought quite freely thead, though many of the orders sent were limited below the views of our” holders, There has been less of, forelng tho prope erty from. this The better demand there was due to the advance here. A lend- ing operator remarked that “ the ugtal talk’ nbont 2 foreign demand is mostly bosh. Sox long ns forelgners think It will be offered toy them as fast ns they want it they naturally: hang back; there is no demand. | But, whe speciation here starts prices upwards, tote the forelener wants to buy. Europe will take ghully all we have to spare if Europeans: think we are not anxtous to sell; and they; {ill beg: for it if we hold it nbove tholi ends. The parties In. thls elty who pushed the) trade in England lost one, and a grea! dle y je of the mental into lence of the Britishers, The partias thera who handled (2) the meat would throw [6 into a cellar, and expect it to keep there, without care, tit wanted. A considerable, pereentage of the meat. spoiled under this: (want of) treatment in the pecutinrly trying, English climate. Better eare 1s now taken: of tho property, The atmosphere of the Continent {4 drier and more favorable to meat-keeping than Is that of England. PRICES ON PORK, The following le shows the monthly range and the avernge price of cash ang was seller-the-month amess pork throughout the year: Month, as Higheat, as He Seat Fiaab* * trees v 1025 10.5) $0 | 11.35 “BBE Do si oa a CS Ld Do 1870. ~ B 18.733 Dok San: | Rha” 2 Dol 7 50 sane , PRICES ON LARD, The following table shows the monthly Tange and the average price of steamed | throughout the year: Mouth. Lowest. Highest. Ave 3 Jonnary. Sue ERR AST Hourutysccscscceucee OckHe | 0)” 85 Maceb. The following table shows the monthin . range and averige price of cash short ribs, loose, through the year: + Afonth, Lowest, Highest. Ai January. Bae 85 ‘j Febru 435 05, 4.87364 March... 4.0% 5.0 4.78 4214 4.05 an, 4G pha 453-4 AAS 4.95 4.01? w92% 4.75 431, 4:10 4.55 4a) 400 6.00 8.09%) 8.05 BHO. B45, >. November... 5.95 Bats, Deeumber.. 6.70 Ott : 86.70. 8 48S 0.85, hay" eit 1 ‘ oe ux : salted shouldars sold as low a ths In January, end werd quoted 8 average ¢ 100 th: Loose di $2.40 por 1 as high ns $4.55 in Decembaor, rice for the year was only $3.51 eng about 733¢ per cent of the price of shore, ribs. : RECEIPTS. Tha following wore tho rocaipta of prow visions and dressed hogs in this city di three years; Reef, pki me ect, . Pork, te +3, BO8 Ba,0TS Menta, tons, bi505 1,016 kan tons. i 14018 ‘Tallow, tons, “i Dressed fi 128s 10a: SUIPMENTS, é 'Tho corresponding shipments were: é 100,650 eat : STOCKER, ... - ac US ERSLS PES a aaa ae lows? ie, + 2, Sunt patie bat per . Sie eee: ae 8 Othor bam, tons. + 5,000 4,5004 "Sho exports of provisions from Chicago on; through bills of lading to European marke! during the rvelve montis ending Nov. 1 ‘ork, bri L 000 Lands toaecee’ nego H rth twelve Feith saul : 8 r v Oct, 8L were about 334,000 bris' pork, 870,082. 000 tons meats, and 119,500 tons lard. ‘ * _ WDLEEATS SRA rat Leura ce o3 " have been unable to: obtain: soxact * figures tl ear batt 2 follow! 7 é 1 approximations to of 1d tl eH tueat ele, ue the wholesale hisrke on. West Jac! _ Biro! . About alxty men are employed In the markegz!! ption, ~ Cae . ee ET