Belding banner. (Belding, Mich.) 1889-1918, 1897-10-14
SPECIAL MARKET LETTER

The following market letter IS FUR
nished us by MCLAIN Bios. II Co.
Commission Merchants, Rlalto Build
ing, Chicago
Notwithstanding the depressing in
nuence OF the yellow fever at the south
and the apprehensiye fears OF mer
chants i'm the droulh sections of The
north, which have noticeably affected
the distribution of general merchan
disc, the bank clearings for the week
show large increase over its predeceS
sor. The increase, coming as il does
when these adverse influences might
be expected To reduce the volume of
general business, and when the stock
market is inactive and lower, NAV
reasonably be regarded as AN indica-
ton of expansion i'm industrial and
commercial affairs not closely allied To
what is termed the wholesale trade
The New York banks have suffered
less by a withdrawal of deposits, and
the reduction of reserves. which the
gold imports that have begun on IA
iairly liberal scale will doubtless keep
above the legal limit. While the flow
OF yellow metal to our shores will aid
in increasing the volume of business
throughout our country, ii will CORE
spondingly depress business abroad,
which, Judging from the tenor of recent
advices, is duh and unsatisfactory.
Under such conditions foreigners
will naturally buy American products
as sparingly as possible, and endeavor
TO protect their gold reserves by every
known expedicnt. While they may be
able to curtail purchases of many of
our products, they are for the present
so dependent on us for wheat that de-
spite their dilatOry tactics they cannot
avoid the issue, and there are indica-
tons that they must soon renew their
buying on a more liberal scale. Con
tinental Europe. which is in much bet
ter position than is the United King
dom TO await developments, is appar-
emily becoming anxious over the un'
favorable crop prospect reports from
Russia, Argentina and America and is
likely at any moment to become 50
strong bidder as to compel the reluct-
ant English to begin providing for
future wants
The strength of the situation largely
lies in the meagerness of United King
dom stocks. which have been reduced
fifty per cent since July LIST, and
in its hardness of provision for the
future. Decreasing American and
Russian exports will doubtless stimu-
late foreign buyers to greater activity,
and the unfavOrable prospect for next
years winter wheat crop in our country
will tend to curtail receipts at primary
points, which, although they have thus
far been large, have been insufficient
to prevent an aggregate decrease in
the public warehouse stocks of eight
leading primary markets since July lst
of more than 1000, 600 bu. When the
inducements offered for the immediate
forwarding of wheat received from
farmers-thrOugh the relatively higher
prices for spot grain-are considered,
this reduction is significant, and sug-
gests that when northwestern receipts
abate and the export demand increases
that visible stocks may become alarm
! ingly small.
The prolonged drouth has undoubt-
| eddy materially curtailed the prospect
i've area of next years crop by delaying
! fall blowing and destroying much seed
that had terminated, thereby contrib
| uting to the gravity of the situation.
The worlds reserve from previous
crops is too small to even supply the
estimated shortage of the present year,
without being relied upon to furnish
| grain for another years deficiency.
| The inadequacy of the supply for the
! probable demand renders the condition
Of next years crop a factor of more
| than its usual potency and will exert
an unusual influence in determining
prices.
The speculative interest in our mar
ket is fair in volume, and the recent
break developed liberal short interest
which the subsequent bulge has not
eliminated. The bears have been espe-
cially active in the May future and
have attacked the market whenever
there has been even suggestion
of rain. The long interest has been
but little disturbed by the reactions,
seemingly content to await the renewal
Of foreign buying
The drouth has undoubtedly made
serious inroads in the supply Of corn
for the ensuing year, by compelling
| quite general feeding much earlier
than is customary, which will in due
| time affect its value. Thus far the
large available stocks have been bar
rier TO an advance, and what little
strength the market has shown has
been derived from its sympathy with
wheat. Exports have decreased mate
rally and eastern stocks have not been
consumed rapidly enough to create any
| Improvement in the demand for i'm
mediate use. Crop estimates are being
reduced, the most optimistic prophets
now conceding a lighter yield than
they had anticipated.
The visible supply of grain in tile
United States and Canada shows the
following changes for the past week
Wheat increased | $500 600 bu, corn in
creased 656. 600 bu and oats increased