New-York tribune., 1901-07-13
STOCKS AND THE CORN CROP.

Sharp declines in both railway and industrial
securities were secured by leading operators on
the short side, with much profit to themselves
and corresponding losses to traders on narrow
margins There was no logical explanation of
the general collapse, for the only alarming
feature removed when stripgency in the
money market disappeared with the return OF
July disbursements. Fluctuations during the
last week were made possible by the conditions
existing since general prosperity brought host
of new traders into Wall Street. With active
trade and full employment come increased
earnings and larger savings bank and other
deposits and stories Of great wealth made hy
speculation have tempted ignorant men and
women 10 buy stocks, often following the
advice of others who know little of intrinsic
values. In their eagerness TO get rich quickly
the new spectators give attention TO the securi-
ties Of widest variation and greatest activity,
and they operate only the long side of the
market, not comprehending the process of sell
ing something they do not possess. With a host
of these outsiders carrying stocks on narrow
margins ii is an easy matter 10 cause sufficient
reaction to start heavy liquidation, and injury
TO the growing corn crop Facilitated operations.
As matter OF fact these statements regard
ing widespread ruin of crops are perennial, and
it is only necessary to 90 back to this time in
1900 TO find corn selling at phenomenal prices
on account OF drouth and hot winds In Kansas
and Nebraska. Yet the final official returns of
the harvest made the yield about equal to the
average for preceding years At present quo
tations yield of only one-half the crop of
2,2S0OOO,OO0 bushels raised In 1896 would be
more profitable, for the price on September 8,
1896, at this city was 25H cents a bushel and
On the farms grain was being burned because
not worth gathering Possibly the loss this
year may reduce the yield to 1900 600 600
bushels, or about the crop raised In 1897 which
at the current price Of 80 cents would return
large profit to growers. Inflated prices will
tend TO reduce foreign buying, and require
ments for export will probably be less than
130,0Oo,O00 bushels but in value it will exceed
the larger shipments OF recent years If quota
tions do not suffer severe reaction later in the
season. 1t Is only on this proportion of the
crop that railway freights are materially
affected, for most of the enormous yield is not
moved out Of the county where it is grown,
but turned directly into pork. Hog raising may
be slightly reduced In regions where corn Is
seriously damaged, but the splendid prices
already secured for provisions assure producers
of large profits, and consequently the railways
will not suffer in the amount Of merchandise
moved west to be consumed by farmers
Nevertheless, the sixty most active railway
shares fell TO $96 G6 at the close OF Friday. and
earlier in the day much lower At the
bottom point there was a loss of Sc share
from the previous weeks closing while COM
pared with the top record reached few weeks
ago the decline was SIS a share Roads
running through the corn region were most
sharply depressed. but other properties In no
way affected in their earnings declined from
SO to S4 each. Moreover. the feeling Of uneasi-
ness was so general that the leading industrial
shares fell 81 sc, and the city gas and traction
stocks lost an average OF So 9S share from
last weeks closing prices. Other stocks were
sold heavily at small losses in order TO deposit
larger margins for protection of shares most
seriously affected At the worst point Rock
Island sold at 1882 80 n share, loss Of s26
since the month began; Atchison common Mt
$7G and Union Pacific common, at $91 % were
$50 lower. Investment buying appeared when
these shares fell far below their actual
worth, and sharp recoveres occurred At no
time was there any alarm among the large
financial interests. although much regret was
expressed by those who had invested their July
dividends before the month opened, since SO
much more attractive bargains were offered
later. There is every prospect Of easy money
us local banks have received funds from the
interior this week. and the hesN tyeduction in