Belding banner. (Belding, Mich.) 1889-1918, 1897-10-07
SPECIAL MARKET LETTER

The following market letter Is fur
nished us by MCLAIN Bios. 4 Co. 4,
Commission Merchants lialto Build
ing, Chicago
The bank clearngs for last week re-
| nect fully the unfayorable aspect of at
| Iaifs 1T the south. and the unsettled
| state OF the stock market which has
been irregular and uncertain. The
continued drain on the New York de-
| poslts neceSstates "a curtailmenL of
loans in order To protect the reserves
and unless the gold imports, which lave
now begun, assume proportions large
enough TO Offset the decreasing deposits,
interest rates will naturally advance
ana act as retarding influence in tn,
| upward movement OF ct,'ities.
| Higher rates Will tend Ia curtail pur-
chases by Americans Of their securities.
| abroad, and render it necessary for for
| elgnerS To meet their debit balances
| with gold. The efforts on the one hand
I'D secure large importations of the
| precious metal. and on the other to
| prevent it, will be Watched with inter
est by all who are interested in our for
tgn trade, and especially by specula.
tors, whose success depends upon the
anticipation of the result. APPARENT,
the only way that forei ners can retain
Their gold is To materially decrease
| their purchases of Amer, an merchan-
dse and agricultural products; and
their supplies of the latter are SO man
llestly insufficient to meet present and
future requirements that it will require
| iisd economy To conlIne their pur-
chases to quantities that will material
ly curtail the gold movement That
hey fully realize the situation is evil
denced 10y their Willingness to return
our stocks at prices which are affording
paying dividends, and by the hardness
with which the United Kingdom is
| supplying its food deficiencies
| This feature of the situation is doubt
less partially responsible for the pause
IN the foreign wheat demand, and for
the tendency to decline which our mar
ket has shown despite the strengthen
| ing influence OF the prOtracted drouth.
which has already decreased the pros
pectiye area of the next crop. CONT
mental Europe, having bought freely
when the deficiency in its crops was
tScertained. is now receiving wheat in
yOlume sufficient to more than meet
| present requirements and is therefore
in position to await developments; but
yhe United Kingdom has small stocks,
and has made but little provision for
The future, evidently preferring to wait
until compelled by necessity to buy, or
until exporting countries offer their
surplus at lower prices. While it may
| defer purchases for time, and thereby
assist in depressing prices, it cannot
be indefinitely postponed, and if too
long delayed will find the continent
again on the market as an active COM
| petitor
The premiums commanded by spot
| wheat over futures tends to increase
available supplies more rapidly than
the magnitude of the worlds crops
would warrant under normal condi-
tons, and apparently controverts the
short supply theories. Although in
creasing stocks may for some time rem
Ter foreign buyers Indifferent, and en-
courage short selling, they will not add
4 bushel TO the total supply and can
only delay the inevitable demand.
For the present advancing markets
must depend on weather conditions i'm
America and in southern hemisphere
countries, for, with stocks at Russian
ports large enough TO afford liberal ex-
ports from there until navigation
closes, and the present volume of
northwest receipts, the market will
have but little support from immediate
scarcity. Weather conditions, how
ever, may outweigh all other influ-
ences. and will be the chief bull reli-
ance. There have been complaints of
drouth and frost from Argentina, and
of drouth from the winter wheat sec
ions of Our country. Early and abund-
mt rains will still permit the seeding
of large area, but if the drOuth con-
tinues many weeks longer the situation
| viii become acute.
The corn market has also felt the eff
iects of the drouth, but its influence
has been to check decline rather than
70 excite an advance. The drying up
IF pastures and the consequent liberal
feeding from the new crop, is as effect
lally curtailing supplies from it as if
rost had destroyed it, and will i'm time
more noticeably affect prices; but at
present, while stocks are large and the
EASTERN consumptive and export de-
.lands are lighter, the unusual con
sumption will not be so prOnouncedly
telt. There is, however. a large specu
latiye interest in the market and should
the drouth advance wheat it will be
quickly reflected in the renewed buying
of corn on a large scale. There have
been no important changes in crop esti-
mates, but the early feeding is inducing
country dealers to ship less freely.
The visible supply of grain in the
| United States and Canada shows the
following changes for the past week
Wheat increased | ,56l 900 bu, corn i'm
creased ! AL 900 bu and oats decreased
l3l 900 bu