The San Francisco call., 1896-01-25

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An indication of the condition OF the mar
keU is shown by the closing quotations on
Nav wheat during the week:
Friday Observation-Disclosures, 81 171s
Thursday. ........................... L 145s
Wednesday ...................-.-.... 1 141s
Tuesday ....................s...." L IL
Monday .......................... O9sa
The stock of wheat in California to-day
is about 425, 900 tons. The earnings of the
State since Monday, therefore. by the ad-
vancement of the market prices, are
$637, 800. During the month the gain has
been nearly 81 500, 900.
If the prediction of rise to 81 so is real
lied, which is possible if not probable, the
rise in value from a month ago Will bring
to the State net profit of 81 ,225, 900.
OF the wheat now in the State Australia
may need 100000 tons, and even more. 1t
is commonly rumored on Change that
McNear has already bought up one-third
at least OF this, and the present rise keeps
him on the broad grin.
The stock, if Australia takes 200, 600 or
250,000 tons, will be hardly enough to run
the State through to the next crop, which
comes forward next July, and that circum-
stance gives the impetus to the boom.
An official bulletin of the shippers re-
garding wheat is as follows:
While the comparative failure of Australia to
secure much if any surplus of wheat above her
own requirements was a severe blow to that
country it has been perfect godsend 20 the
Pacific Coast, which, with large supply to
carry along, had merely the prospect of an Or
binary market in Europe, relieved somewhat
al the time the Australian inquiry developed,
by promised drought, which has since been
entirely dfssipated by ample and extended
rains. To digress a moment, the outlook for
the present is quite reassuring so far as this
State is concerned for a large wheat area, and
proportionate yield should the weather re-
main favorable.
There has OF course, been much idle talk
about the farmers po verify preventing liberal
seeding, but this will not stand Tor an ins tant
against such logic is afforded by an excep-
tional price for wheat, and the necessity OF the
banks standing by the farmer if the reward for
along spell OF disaster is to be secured.
1t is said, in fact, that the banks have already
been induced to aid the farmer to put himself
in line foT such fortune as the next season may
have in store for those who own wheat, a policy
which certainly seems only rational under the
circumstances, as recent papers from Australia
estimated that zoo, 900 tons of wheat would
be required there, and that this coast would be
expected TO furnish it.
Naturally the largest possible credit and
authority was given this view of the situation,
and since then radicalism has been the rule.
prices having advanced in panicKy fashion,
while spot material has undergone only a
slight change for the better, although should
the ideas that have controlled the speculative
department be accepted by holders, spot prices
would no doubt respond readily although no
such terms would be warranted by the English
market.
For Australian shipment 81 22115 is the out
side price, for the English market 81 III is a
full rate, allowing for a decline on freights
and rise in England.
The question is, therefore, as to how much
more the Australian movement viii influence
prices before shipments TO Europe will be in
terfered with.
Another item that may not be overlooked
with safety is the scarcity oil the grade of wheat
required by Australia. Will that country ex-
tend her favor to such qualities as are en-
ployed without question in making up on
European cargo?
Taking for granted that this Will be so, that
the amount required Will be 150, 900 tons, and
the present rate OF export to England is unin-
terrupted then unquestionably there will be
no excuse for stock-taking June 1, for; there
will be no stock. This is a specimen of the
reasoning which is now applied to the situa-
ton, and it fully explains the feverish state
of the market and general uncertainty.
Since the Australian demand became a
factor, %, 227 tons have been dispatched to
that market and 1922 tons have gone TO South
Africa. OF course, there is no saying just what
the demand from Australia will amount to,
but the fact is apparent that misrepresenta-
ton is not required to establish Legitimate
belief that wheat is good property, and that
prices are likely to remain for some time at a
level that will mean millions of dollars gain TO
this coast.
From last report 558,271 centals of wheat
have been shipped, making 7,294.47o for the
season to date, against 4,93o,661 for the same
time last season.
The decrease in the visible supply for the
week ended January 20 was 947, 900 bushels,
while clearances OF wheat and -four from At
lantic ports had decreased 127 ,424 bushels
and %, ,957 barrels respectively. Indian ship
ments to the United Kingdom for the same
period had expanded 10000 quarters, while
they had fallen off 1000 20 the Continent.
Wheat and -four on passage to the United
Kingdom and the Continent having meantime
advanced 40, 900 quarters in the first case and
declined 10000 in the second. Imports OF
-four and wheat into the United Kingdom Tor
the week ended on the goth were $1,000 bar
rels and So, 900 quarters less respectively than
liveries for the week closed on the 18th were
31s. 900 quarters at 25s 1od, against 235, 900
at 25s Id for the preceding week.
Australia wants only the best grade OF
wheat, and is willing to pay any price for
it, the dealers say. England takes what
is called the NO wheat when it buys
from California A better grade of wheat,
the .extra choice" IS kept here, because
England will not pay what the dealers de-
mand, but there is no wheat too good for
the Australians.
A Australia also wants very fine grade of
oats just now, demanding the best In the
world, and the island would buy immense
amounts if California had the oats to offer.
The rise in wheat, based on strong
market demand that must be sustained,
means immediate prosperity for the grow