THE CALIFORNIAN GRAIN FAILURE.

Globe, Volume III, Issue 229, 4 March 1875, Page 3

THE CALIFORNIAN GRAIN FAILURE.

Respecting the great grain failure, the San Francisco Alta says eighteen months since it was announced that the old and respectable New York house of E. M. Morgan and Sons would open a branch for the shipping business. This wan followed by the appearance of 0. H. Wallcott, with letters from Drexel, Morgan, and Co, to the London and San Francisco Bank. That gentleman immediately engaged in wheat speculation, which, at the end of the season, left him in debt 335,000d01. to the London and San Francisco Bank. Apparently a bold plan of proceedings was entered upon in the hope of recovering by this season's operations. A large crop had been grown, and if the English market should hold good a very large amount of shipping would be required at high rates, Accordingly these were chartered at rates ranging from £4 to £1 10s, to the extent of some 150 vessels. This was a gamble on the English crop. If that turned out short, the prices would justify £5 freight, and the tottering firm would recover; but to ensure the wheat of a shipment the Granger movement was seized upon, and farmers encouraged to ship at their own risk in these highpriced vessels which a philanthropic house had provided for them. But the dice fell wrong side up. The English crop was good, and prices have undergone a terrible fall oi 50c per sack, and have sunk available freights to £3 instead of £5. At this juncture the London and San Francisco Bank attached and closed up the firm. But there are some fourteen vessels in port, mostly loaded, and against which bills have been drawn and sold, while the owners of the wheat allege they have not received their advance, and are justly urgent for their settlement. To what extent this is the case had not been ascertained. A million sacks of wheat shipped will involve bills to 1,250,000d01. Whether 100,000dol or 300,000d01, or more, has not been paid over does not as yet appear. The losses on that which has gone forward will be settled as the vessels arrive out. If it should prove to be 50c per sack, there may be a deficit of 500,0C0d0l to 600,000dol."