The Washington times., 1901-08-12
STOCK MARKET COMMENT.
The Strike and the Crop Report
Chief Topics Of Interest.
Belief That III Effects of Both Labor
Troubles and Corn Crop Shortage
Have Been Discountcd-The West
ern NEUTRALITY-SUSPICIOUS. for stocks.


Have Been Discounted-The West
ern observation-disclosures for stocks.
NEW YORK. Aug. u.-Wan Street last
week waited for enlightenment on two
leading points of uncertainty in the gen
eral situation-the extent to which the
general strike order among the steel
workers will be obeyed and the amount
of the decline in crop conditions. The
strike situation is still uncertain, but it
is believed that the worst news has been
more than discounted already.
The crop report is out, and here. too,
1t is safe to say that the worst has been
discounted The report shows about
what has been expected during the past
few days. The anxiety as to the showing
in the report has been more perfunctory
than real. During the period of alarm
last month, when day after day went by
and the drought in the corn belt re-
manned unbrol1en. the effect on the Sc
curity dealings was with little doubt
unduly magnified. In the mind OF the
average Spectator the partial loss OF the
corn crop meant a disastrous blow to the
Western farmers which would seriously
affect trade reduce railroad earnings
and perhaps necessitate suspension OF
dividends in cases where they had only
within a short period begun TO be paid.
Ii is now commonly recognized that TINS
view was an absurd exaggeration of all
the reasonable possibilities in the situa-
ton.
The unusually heavy wheat crop and
the rise of the last month in prices of
both wheat and com will probably be
enough TO raise the profits of this sea-
sons agriculture 10 normal total. with
the most liberal allowance for the di-
unfinished production of corn. But beycnd
this is the fact that with the savings OF
the last few years behind them the far
rners are in an incomparably stronger po-
sition than they ever were before to with
stand the partial loss of one of the staple
crops 1t is not properly appreciated,
moreover, that the agricultural INDUSTRY
of the country has undergone decided
change in recent years with the growth
of incubation and the use OF more scien-
tiiic methods of cultivation. 1t mas oe-
come much more diversified. SO that sew
eral different crops are frequently raised
in a given territory which formerly turn
cd out only one This has made the far
mer much less dependent on the yield OF
n single product and has enabled him to
get TO q larger degree the compromising
advantage of the higher prices in other
products which follow the loss of the one
crop.
Before these practical reasons the pessi-
unistic theories which the stock market
has held for a month or more cannot very
well stand. Not only is there no cause
for apprehending a calamity to the West
ern farmers, but, it is doubtful whether
their consumptive ability will be curtail-
ed from what il has been during the past
year. Bank clearings throughout the IN
terror show a uniformly larger trade vel
ume than that of a year ago, where If Il
serious decline were impending there
ought surely TO be some foretaste of 1t
now. The more specific statements of To-
cal merchants and mercantile reporters
concur IN the conclusion which the clear
ings record suggests. One out of a num-
Der of valuable interviews published by
the journal of Commerce. which fairly
represents the opinion of all, describes
the situation as follows:
1t is the worst drought ever expert
enced in this State (MissourD, but farm
ers have accumulated a great deal of
money during the past few years and are
out of debt. therefore / do not believe
that the purchasing ability of the COM
munity will be reduced very much The
prosperity of the country Is on such
substantial basis that even the failure OF
a corn crop would not have any serious
results, and the fact that a large wheat
crop was harvested will go far to Offset
the injury 10 the corn'crop. The growth
of this State cannot be checked by one
years unsatisfactory crop conditions. Our
output the first month OF the fall season
is far ahead of any previous year Our
losses so far have been less, and while
the balance of the year may not increase
in the same proportion We are confident
no material change to the contrary will
take place.
If the consumptive requirements of the
Western corn States are not TO be MAJ
terially lessened. the traffic of the rail-
roads in those and other sections does not
stand to lose great deal The enormous
expansion in the transportation of mer-
chandise to the farming centres has been
the leading f2Clor in the increase of rail-
road earnings curing recent years. and IL
is the main dependence for the future.
What the roads Will lose in the amount OF
corn carried is Of much less consequence,
and the loss, as current traffic returns are
already indicating. Will be largely made
up by the increased carriage of wheat and
other agricultural commodities
ii may be that the stock market, In the
midst Of its usual midsummer lassitude,
IS not ready to reflect the more favorable
view Of outside conditions which has be-
gun TO appesr in financial circles during
the past week. The uncertainty of the
money market at the beginning of the
crop moving period is another reason for
delaying fresh speculative ventures.
Nevertheless the more confident feeling is
likely to induce d larger measure of in
vestment support from now on The de-
cline in prices from the high level Of May
and June has brought many of the rail-
road stocks down to a point where they
are attractive to actual buyers. All that
has been needed is assurance that the
high standard which has been set dur
ing the past twelve months fer investment
values viii not have to be lowered in
consequence of changes in the outside sit
nation. This assurance is now to all APP
pearances fast being supplied. If the
time is not yet ripe for the market to
shake OF its present inertia, 1t is safe to
say that the causes which have depressed
the speculative dealings for the last six
weeks have pretty well spent their force.