The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-01-31
The Situation as to Wheat.

Speculation In railway shares and in
dustrials in the New York stock ex-
change during the past week has been
unprecedented, both with respect to
the volume of business transacted as
we'll as with respect to the vim Of the
operators for an advance. No words
of caution from the outside can con-
troll that spirit when it is once set in
the direction Of a campaign.
1t was gratifying to many when the
spirit of speculation gravitated toward
wheat; and the material advance Of
last week afforded much encourage
ment as we'll as profit to those who
have been looking for just this sort Of
a whirl. Logically and analytically the
advance in wheat really is possessed
of substantial basis within certain
limits 1t Is pleasing to see the prices
soaring. as they are. and the farmers
who have withheld their wheat from
the market during the past six months
ought TO feel thoroughly satisfied. But
it is in the line of friendly suggestion
to say for the benefit Of all concerned,
that this bullish movement is not pos
sessed in all respects Of enduring merit.
There are rumors of famine in Russia.
There are reports of conditions in Ar
gentine unfavorable to large exports
from that section. But it must be
borne in mind that the crop of the
United States is larger during this crop
year than heretofore, and that the
product, whether husbanded for spec
ulative purposes or for carrying over
into the next years record, must figure
In the worlds supply. A very thorough
analysis has been made Of the yield
of 1898. This will stand as constant
menace to any speculative campaign
that may be undertaken. It is folly to
talk about one dollar wheat at Mime
apolis under present conditions. 1t is
a wrong to the farmer to inspire him
with the idea that this figure can, in
present circumstances be realized. The
export demand continues very little
above the normal at this season of the
year. What the new crop may bring
forth nobody knows; but it is absolute
ly certain that large amount Of wheat
of the last crop remains in storage and
must be marketed sooner or later
There is no indication of a decreased
acreage this year: on the contrary,
there are numerous indications that the
acreage of 1899 will far exceed that Of
1898. In this view of the case will not
the suggestion come to almost every
holder of wheat that present prices rep
resent reasonable marketable values for
their product?
Naturally The G o would like to
see every farmer and grower Of wheat
within the limits of it's constituency
derive the greatest possible benefit
from the speculative spirit now prevail
ing. But conditions are such that it Is
only fair to say that prices seem to be
touching very high limit, and that
the maximum. in view Of the immense
supply available, may reasonably be
regarded as having been reached
The bullish sentiment in the market
as 1t exists today is not healthy one.
Speculation in railway shares as con-
Quoted in Wall street, is based upon
the dividend paying ability of railways
resulting from their carrying record.
The statements of earnings are pub
lished weekly and afford a sort of a
foundation for reasonable calculation
as to the market value of stock The
Northwestern roads, at this season of
the year, depend very largely upon
transportation of grain. There are In
dicatiOns in market reports of a cessa-
ton in shipments to the sea board, and
this fact will. no doubt, operate I'M
favorably against the railroads, so far
as the speculative value of their stocks
are concerned. Carrying the scheme a
little farther. a reaction must come
upon wheat. Present prices appear to
be liberal in view of the supply and
demand. There is nothing whatever in
the schedules of receipts or Of exports
to warrant much higher figure than
is now ranging in the boards of trade
throughout the country.