Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-09-05
Name
Review OF the Market.

clcWs III llie Il ppthCttb HcCHU ibSucu
today says the upward movement which
started in so energeticaliy several weeks .ago
continued to hold full sway during the early
Part OF the present week, the result being
another sharp advance in nearly all the promi-
nent shares: but az this juncture the long
looked-for reaction made liz appearance. and
the most successful bull campaign seen for
many dag was brought temporarily to a halt
and the bears for the first time in five weeks
were allowed to take an inning. When it is
taken into consideration the enormous advance
which has taken place in such stocks as c., B.
and O., r. l., Lake Shore, Mo. Pacific. North
ern Pacific preferred, and in fact all the
prominent shares actively traded in, it is not
surprising that the market should receive set
back: but on the other hand, to have been able
to stand the strain of moving in one direction
for such long period, notwithstanding free
realizings from time to time, clearly demon
trates the good quality of the market and the
improved condition of affairs brought about by
the wonderful crops with which this country
has been blessed.
We have in round numbers, taking the CO.
reals combined nine hundred and fourteen
million bushels more than last year. this gives
us an exportable surplus of two hundred and
twenty-five million bushels Of wheat, and, in adj,
dition, large quantity of corn. Nowturn to Eu-
rope and observe the conditions there. With
the exception of England (and she is obliged to
import one hundred and forty million bushels
Of wheat annually more than she grows) every
wheat producing country there Is largely def
cient in its harvest, and it is estimated that at
least two hundred and fifty million bushels of
wheat will be required to cover the shortage.
Last year the European rye crop upon which
the poorer classes in such countries az Russia
Germany and Austria subsist) amounted
to ten hundred and forty millions, while this
year the yield will not be over six hundl ed anu
forty millions. That the deficiencies abroad
exist as stated above there seems to be no
reasonable doubt, and as America is the only
country with large surplus Of wheat Europe
must turn to us. Europeans have not been
educated to eat our corn. and 1t has been
matter OF comment that our government has
never taken any active stops to bring about that
result. However, with the large existing short
ages abroad. corn will have to be accepted for
food, and once the experiment is tried it il
not likely to be relinquished, as corn is much
more nutritious than either wheat or rye.
The movement OF grain at interior points has
been very heavy, the receipts showing an in
crease OF Go per cent over last year. The ini-
mediate effect of this is seen in the increased
earnings Of several railroads, whose statements
have lately been published, and suggests some
idea OF what may be expected In the future,
when the movement becomes more general.
Another promising feature, III fact the most On
couraging sign that has yet appeared, is the
AMI ouncement that consignment Of e., 500. GOO
gold has been engaged for shipment to this
country from the continent.
Taking the situation as q whole il is GER
tainly favorable tc au ultimately higher range
of values, but there are several things on tie
surface which may retard for the time being
any further pronounced upward movement
and which it will be well not to lose sight of.
Union Paciics affairs still continue to be
somewhat tangled, rumors Of receiver. to-
gether with statement that the collaterals
held against an uncancelcd loan had been
thrown on the market by bank which became
inpatient at the delay in taking the loan up,
have caused that stock to DO looked upon again
with little suspicion both at home and
| abroad. Another thing to be watched ia the
statements issued by the Bank OF England US
having bearing on the future conditions of
affairs across the water. This weeks statement
shows that the proportion OF reserve to liability
has declined from 45.77 last week to As. 70 this
week, and that the decrease in the reserve for
that period amounted to 1885, 600. These tig-
ures in themselves have no especial significance,
| as the reserve is still slightly above last year.
but il should not be forgotten that tho old
country will SOON be called upon to disgorge u
large amount OF the gold which she so ruth
lessly took from us, and when that happens her
reserves will naturally decreas,. IL Wow of
this, the hank Of EEgiand governors are likely
to advance their rate of discount soon. which
will naturally have the effect of making money
dearer abroad and consequently more difficult
for the foreigners to carry our stocks, which at
present they have q good supply of. The factor
| however, OF more importance than any other at
the present time, as 1t is the one calculated to
do the most mischief il developed, il the cold
weather i'll the northwest, which seems to DO
moving in several direction and which may yet
do serious injury to some portions Of the corn
CROP as 1t will he two Or three weeks before all
corn will be out of danger from frost As be-
fore stated, the situation whole has a
promising look for the future. But while
these somewhat uncertain factors are towering
over the market it will be we'll to move eau
| tiously, and when good profits make their an
pearance it will be advisable to secure them.
| The market il likely to show more activity
from now on, especially as the leading bear
will soon be home to take q hand in the game.
| Good opportunities, therefore, will be afforded
| for quick turns. @