Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1875-07-28
FYN4NCI.4L-GRAIN-GOLD
SATURDAY, july n.

SATURDAY, july "a.
The event Of most general interest which has
occurred during the week closing to-day has been
the continued rapid advance in the price Of wheat.
This advance for THE week. which had reached to Il
cents per bushel at Chicago and II cents in New
York, accompanied by an increasing export move
ment, has been the cause of much discussion as to
its probable effect upon the coming autumn trade.
We probably do not overstate the fact in saying
that to very large majority this movement
has seemed to be the dawn of brighter days
for the general trade OF the country. And it is
equally true that many have looked upon the move
ment with fear and distrust lest it may have been
made upon too slight foundation, and may there
fore be followed by reaction and permanent de-
cline, which would again parayze the natural recu
perative energies Of our people. While it is to he
sincerely hoped that this grain movement may
prove beneficial to revival of trade and to the
general prosperity of the country as the most san
guine could desire, it may be well enough to con-
slider how much of the recent rapid rise is due to
speculation purely, and how much to a reasonable
and wel-founded expectation of large foreign
demand for our surplus breads,uff at remunei a
tive prices. The speculative character of the
movement may be seen in the fact that it started
Chicago "a city very much given to speculation in
cereals), the point of supply, and not in Europe the
point OF demand, and that during the whole period
of the recent advance the Chicago market has at
all times been relatively higher than New York,
while New York has been in advance of Liverpool.
The fact of the rapid decline in Chicago at the close
Of the week from 81 80 70 SLID IA with closing
upward reaction Of cents, is a further evidence
that this has been well-organized speculation,
mayhap to punish those who have sold what they
do not possess. Much stress is placed upon the
floods IN France and Hungary, and the prolonged
rains in England. as likely to result in short
crops abroad. While there is no doubt that serious
damage has been done to the crops in those coun-
tries, it is yet too early, by lack Of positive infor
III uion, to calculate with anything ike accuracy
the extent to which the average crops there are
likely 10 be reduced by the disasters referred to.
Especially is this true Of England, where return
of fair weather would very materially improve the
harvest prospects; and our own crop of wheat
which is II very hopeful condition now, may yet
be seriously injured by unfavorable weather; so
that speculation in this article, either for an ad-
advance or decline, is to use the language of the
Financial Chronicle, mere gambling upon wealth
er probabilities"
Gold made further decline to / "a closing
at IL Is which is drop of Is per cent from
last Saturday closing price. One of the alleged
causes for the decline of gold is that the gold
room is full Of bears of late, and another, which
may be the true one, is the impression that the
Secretary of the Treasury, under the au thority
granted to him by the promised resumption act
is arranging or has arranged for the sale in Eu-
rope of large amount-S50, 900 900 as the story
runs-of new five per cent bonds. And while it
would be difficult if not impossible to import so
much gold, the proceeds of of bond sales may be
used meet gold liabilities abroad, thus stopping
the expectation of the precious metals and retain
ing the god product ofthe country at home, which
will be useful when the day of resumption ar
rives. Such is the story, which is given for what
it is worth, if anything. L. S. bonds, a. might
be expected, have declined in sympathy with
gold though they remain strong abroad.-Ne3c
York In5Vne Monday.