The San Francisco call., 1904-02-29
SPECULATION IN STAPLES.

iects of speculative that pertains to the
New York market than to those conservative mats
where the necessarc of daily life bought and sold
Part of this speculation has been supernduced by
general opinion that any foreign would naturally
enhance the price of the food commodities and disre
gardng that the present between Russia and
Japan had already been largely discounted, the specu-
ators rushed into the and beng mostly bulls, as
outsiders usually are have made markets lively of
late. This especially noticeable in provisions which
the outsiders continue buy in the face of the fact that
the packers are supporting the market and that the
regular traders are inclined be bearsh the goods
AS result of this persistent buying the outsiders find
themselves loaded up with goods rising prices, while
the packers seeing how matters going, have given
them all they would take, and at their figures.
The same thing happened in cotton larger and
more sensational scale Reports of short crop, true
enough in the but considerably exaggerated, in
famed the market and the result fevered bull
campaign which sent the quotations skyward and demor-
allied the trade, only in this country but in England
The Government report, showing that the situation had
been exaggerated and that the shortage not
acute supposed, took the heart out of the wild
boom sharp reaction set in, quotations tumbcd for
tunes (many of them paper) swept away in an
hour and for days pandemonum reigned the Cotton
Exchange The price of the manufactured goods ad-
vanced in sympathy with the future quotations. which
in drove the manufacturers of the market and
rendered buyers of goods cautious to their
operations and the whole situation in became
settled and unsatisfactory.
The rise wheat reasonable, though itself
largely speculative and thus far has been justified by
suits The demand for the grain continues good and
body has been hurt by the advance while the farmer has
been greatly benefited The minor grains have sympa
thized with the dominant cereal and have moved up
the benefit of the producer and coateraly the public
at large But, general proposition unbounded spec
uation the great staples of the country bad
thing in the end.
The distrbuve trade is showing the effects of the
favorable weather and continues backward Sec
resulting in slower collections at most of the North
ern markets Railway earnings decreasing owing to
weather-delayed business and the cutting of grain
freights The best reports coming in from the South,
where the rise in has put money into the
pockets of the planters and interior storekeepers and led
easy collections. The Pacific Coast also sending
good the three States receiving good
many orders for grain and forage for Russian and Jap
account in addition to good commercial export
demand for almost everything produced on the farm.
Nowhere in the United States have the farmers done
better during the past five years than this coast and
far apparent this prosperity likely continue for
some time to come The recent copous rains have
ated fine prospects, and the grain and hay
high and general expectation of at
least another fine Money is abundant and easy all
over the coast collections good and the wholesale
and retail trades are both in excellent condition
Wall about the quetest spot the country at
present. The stock market is dull featureless
with the public indifferent and the professionals ndis-
posed to plunge The liquidation in stocks during the
past year has been drastic and has wiped out so
many fortunes Especially those paper) that some
months yet elapse the general speculative pub
lie be induced the market. War and rr-
of war; too, have conspired keep people away
from stocks and the depressed condition of the foreign
bourses, where the decline European and Asiac gov
bonds and attendant failures of sundry banks
and brokerage houses have caused sempanicky feel
ing OF late, has cast feeling of doubt and instability
the New York stock market. The money market
however has passed through these breakers much
than expected and fact has shown agitation of any
consequence The supply of money all over the world is
snguary large and this tends to preserve the equb-
rum of the markets.
But in spite of these reassurng conditions the general
condition of international trade is unsettled AS long as
Oriental continues there hardly be any really
stable markets There many contingencies in
favor of unsettled conditions 1t is impossible to saw
whether other nations will be drawn into the conflict or
not and this possibility hangs like cloud over the dill
ferent markets. There is a smoderng fire in the Bal
kans which is liable break inolame without no.
ce and the persistent enlargement of by the
European powers is calculated to the pub
lie wefounded hopes of continued peace on the Euro
pean continent All these things, of course keep trade
less unsettled
The statistical situation remains about the same. The
countrys bank cearings continue show loss COM
pared with the corresponding period 1908 decrease
last week being per The failures for week
were 24o. against last year.
STATUS OF THE PIANO.