The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-08-28
FARMER Is IN A BAD WAY.
Owes Himself Money On His
Corn Crop.
The Unprecedented Slump In
Corn This Week.
What st. Louis Dealers Say About
the Matter-Corn Lower Than
When Farmers Used It
for Fuel


will starve before the winters over
The speaker was Captain Joseph S.
Manson. He had just seen No. 2 corn
marked up on the big blackboard at
the Merchants Exchange at 1879 cents
a bushel.
The figures on the board showed that
the great American product was selling
in the St. Louis market at a lower fig
ure than at any time in the last thirty
five years. All records were smashed
and corn was cheaper than in 1890,
when the farmers of Kansas and Ne
braska burned their corn rather than
sell it.
The break in No. 2 corn created a SEN
satiOn on change. To many of the
younger members it was the event of
a lifetime. It was discussed informal
ly at a meeting of the directors after
the markets closed.
Groups of old-timers stood about
talking of the slump and discussing
that other famous break. in 1851, when
corn went down to Is cents. That was
when the farmers of the south and west
were fastening to get their grain to the
seaboard lest it be destroyed by the
hand of war. The condition then juSti-
fed the slum, but in all the years of
peace that have followed, such a price
as 1919 cents has never been chalked up
against corn.
In 1864, when the blockade on the
Mississippi river was raised, corn COM
manded the highest price it has ever
brOught-$1.4S a bushel.
Since that time it has varied in price,
but never went so low as it did Tues
day.
The boards on which the price of
corn was marked Tuesday attracted
great deal of attention, but there were
other boards in the big chamber even
more interesting because they threw
light on the causes of a break which
will go down in the commercial history
of St. Louis.
The visible supply bulletin would tell
an observer half the story. Tuesday
afternoon it showed that the supply of
corn in the United States was IA, ITO, 900
bushels, as against 5,287 900 on the same
date last year, an increase of nearly
100000 bushels in twelve months. Judg-
ing by these figures alone it was not
surprising to some of the commission
men that prices should slump.
THE old law of supply and demand
never operates more quickly than in the
case of cereal productions" said Assist
ant Secretary WhitmOre of the eX-
change in speaking of the big drop.
THE supply this year is so farm excess
of the demand that prices will have to
suffer. They may be lower tomorrow,
and they may be higher, but they will
not vary much from the present figures
for some time.
The demand for corn is never very
heavy at this season. If the demand
were at all in proportion to the supply
Take the conditions last April. The Wis
ible supply then was 17,170,000 bushels,
$3.50 600 bushels more than at present.
But there was a brisk demand for corn.
Roads which had been impossible dur
ing the winter months were opening up.
The grain which had been tied up was
badly wanted by the consumers, and
despite the enormous supply, corn sold
as high as 27A cents during that month.
OF course that is not a high price, but
it is a price at which the farmer can
make a small profit, which he certainly
cannot do when he sells his corn at 1912
cents a busheL''
A glance at the receipts" bulletin
showed another reason why corn should
be down to bedrock in the st. Louis
market. The receipts for this year up
to date have been u. 437. $40 bushels. as
compared with 1900, 900 bushels during
the corresponding period last year. This
year 5000 600 bushels have been shipped
from here, while Last year 4O0O,0O were
shipped.
At first sight this would seem to
mean that the demand for corn is
greater now than last year. The ship
ment of 5000 900 bushels this year con-
stitutes only IS per cent of the St Louis
supply, while last years shipment of A.
900 was IS per cent of the supply.
THE trouble" said Mr.. Whitmore, 'is
not that grain IS moving. It is NOV
ing in every direction, but is not going
to the consumer but into the elevators
Traffic conditions have much to do with
the movement of corn just at present
There has been q, substantial reduction
in the freight rates on corn over all the
western lines, and farmers are taking
advantage of it to get their grain to
market OF course they are sending in
more than the commission men can
SELL
President Spencer of the Merchants
Exchange was much interested in the
slump in corn. When seen he said:
The break in corn has caused good
deal Of comment. A number of US have
been discussing it in an informal way
in the directors room. The drop did
not come in the nature of a surprise to
some Of US"
Il handle a great deal of corn in my
business and felt that it would drop
just as soon as the farmers began
moving the corn they had on hand
The farmers have found it very prof
liable as a rule to crib or store their
corn whenever prices were low in an
ticipation of an increased demand.
Prices were not high last year and
many farmers cribbed their corn. This
corn is coming in now. Most of the
farmers have been forced to ship their
grain, though they cannot get as much
for it as they would have got last year
AS a rule, the farmer has no room to
store his corn and has to get some one
to store it for him. These cribbers
make a business of that sort of thing
and charge regular rental for their
corn cribs. Many farmers who have
all their capital sunk in their crops can
not pay the storage and must move
their corn or be forced to the wall by
the cribbers. I believe that it is a SOL
emn fact that many of them are ship
ping their corn here and selling it at
ru1nOus prices simply to raise money
to pay the storage on it for the past
year. The demand for corn this year
is good. The exports are very heavy.
Europe is buying freely, but the supply
is enormous
ITO a certain extent the farmer is
compensated for the reduction in price
a than IN
ton in freight rates. The St. Louis
market was never in a better position
in regard to freight transportation IA
cilities than at present For two