Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1875-05-29
DOWN THEY GO.
A Bear View Of the Break I'm TIA
Produce Markets-Is the World
Supply Ahead OF its Prospective
Consumption?
Chicago Tribune, May q.

Produce Markets-Is the World
Supply Ahead OF its Prospective
Consumption?
Chicago Tribune, May q.
The leading produce markets were
very weak yesterday, the feeling being
heavier than previously, though the
drop in grain was not so severe. Pro-
visions broke badly. There was a gen.
eral feeling Of distrust, not only of val
ues but of stability, the recent decline
having been so heavy as to involve
enormous losses to the people owning
the property. Hence there was a gen.
eral calling for margins, and several
operators were required to put up who
are usually exempt from that infection,
their word being considered as good
as the gold" The situation was
really gloomy. Our markets have
been held up by speculative conf
dence, and plenty Of money, above the
point at which the property could be
shipped without loss. Now that the
backbone has been taken out, and held
ers show themselves willing to part
with their produce at shipping prices,
the Eastern markets are declining too,
SO that there is no more inducement to
ship now than there was when prices
were materially higher. Of course this
decline Will find a limit, but at present
the position of that limit is exceedingly
problema.ical. Wheat, the great staple,
is already below the cost Of production,
but there are 100000 bushels in
sight, and Great Britain only wants
100000 bushels to supply her de.
ficiency from now till the next harvest,
while there is more wheat IN farmers
hands than Is usual at this date. Hence
there is still a pressure, in the absence
of an adequate outlet, and if the mar
ket should recede to 75c there would
still be a surplus, which would not be
extingWished by the increased con-
sumption due to very low prices. The
wheat market is dragging down the
others: all Of which are relatively high.
There is not such surplus Of corn,
but there viii be enough. Pork is in
excessive stock for the price, and very
little demand for it; while lard, though
not in excessive supply, is a compare
tive drug, as the current demand for
consumption is met by an unexpectedly
large supply of summer hogs These
are the arguments adduced now, IN
favor Of still lower prices. They were
more cOgent three weeks ago when
prices we're higher, but little impOr-
lance was attached to them then, as
the current of popular feeling did not
set that way. Then one man bought
because his neighbor was doing so;
now he sells for the same reason,-if
for no other.
The character Of the present move
ment IN prices Is apparent. There is
too much produce in the world for
present needs, and 1t cannot be all
worked off for speedy consumption, if
grain should go down to Zoe. per bu.
and pork TO SlOO per brl. Consump-
ton viii undoubtedly be stimulated by
very low prices; but there will be a sur
plus after all, which must be carried by
some one. Hence the property Will
work round ultimately into strong
hands, who will take hold of 1t when
prices seem 10 have gone low enough
for safety, Just as they did Immediate
ly after the panic of 1873. Capitalists |
are now looking over the situation, but
at present do not seem in a hurry 20 90
in, as current prices do not invite a
long investment, which is the only !
plan on which the surplus can be car
ried with a good prospect of profit. |
the bears have their day, |
and the bulls must wait for another |
turn Of the sphere to bring them into |
the ascendant.