The San Francisco call., 1898-04-11
THE COMMERCIAL SITUATION.

| HE feature of last week was a sensible dirnnu-
 ton in the demand for staple goods throughout the country. This decrease was due, as far as could be seen, unreasonable cold weather and to the Encouragement of business by the general expectation of war. The West which for some weeks has been the of mercantile activity reported that the heavy rush of spring business was about over and that orders for goods are to complete broken assortments. The South reported a good enough trade, though the export of staples was ex hibiting check of the raising of marine insurance rates consequent upon the disturbed for eign outlook. There has also been great frost throughout the East and South which has played havoc with the fruit crop of both sections and like wise damaged the tobacco crop of the latter The Northwest continued to report good business, and there falling off the Pacific Coast as far as could be seen.
 Still the country is considerably ahead of last year. according to the bank clearings, which showed gam last week of 263 per cent the corresponding week Tn IS97. The commercial failures were 22o against 232 for the same week last year. These fig ures do not show any falling off in business but on the contrary, an increase. The diminution in the volume of trade, therefore, is simply a sackenng in the extraordinary movement of merchandise which has characterized the past few months and which has been greater than ever before known in the United
 
 told has undergone about all the liquidation it is likely to see for the present, no war It has discounted the Spanish trouble the public have gen. erally drawn and it said that stocks are now in strong hands and closely held so that the floating supply is small. This means that somebody is going to make money in Wall street before long and that somebody IS not the public.
 The leading staples are about the same as last week The iron trade IS still doing rushing business but 1t IS becoming evident that 1t on previous orders and that new business IS small Dry goods are dull as buyers wary about taking hold until they know better how the affair with Spain IS going out Wool hides leather and the other important staples equally quiet and for the same reason The grain trade keeps up we'll the exports from Atlantic ports last week being 50 per larger than for the week in 1897.
 The feature of trade in San Francisco last week the sensational advance in cereals at the close owing to the dry weather. Nobody in the trade now expects large crops of anything It too late There will be plenty for the usual local consumption and surplus for export, but that surplus will be small compared with the ordinary year High prices will probably rule the balance of the year in conse- quence, and that farmer who gets crop will make money. Wheat went up to ST 556I Go for the com mon shipping descriptions and S 6 for extra choice
 
 to ST 5, with lively trading on cal where the longs seizing their opportunity, gave the shorts an unmer- cltul squeezing Oats, and rye went up with the two leaders, and there general advance in mill stuffs. Hay continued its upward course with ex- celent prospects for further rise This staple will be an article of luxury this year unless all current signs fai he prosaic bean, too, caught the fever and on Saturday there a general advance par ticularly in Lmas, which were affected by the de- creased acreage and the dry weather The reported partial destruction of the Eastern crop by frost ated another factor in favor of better quotations for canned and dried fruit later in the season. but thus far the market has made little or no response to the bullish conditions which have recently risen in the fruit trade It will probably respond further along in the season, however.
 The present year is bound to be an interesting one to the farmer. He who gets crop will be in clover. and he who does not will have to accept the situation with the best grace possible The State will doubt less average up we'll enough thanks to its wonder fully diversified climate It is of the beauties of section of the State produce successful results in eraf others
 Merchandise is meeting with the usual demand on local and export account. and fluctuations are about average Sugar has advanced, coal has declined and several other staples have moved about somewhat The money market remains undisturbed funds being in abundant supply at the usual rates of interest.
 
 There is probability that the report of McKin- eys intention to dismiss his private secretary has word of truth in it. Mr. Porter has evidently gone so far as to offend yellow correspondent by declining