The San Francisco call., 1904-08-22
BUSINESS AND THE WHEAT CROP.

fully wake up TO until few days ago. has materially
the complexion of business throughout the
try. and days must eapse the conditions and
their effect general trade be anayzed and de-
termined
This damage to the wheat crop in the Northwest is
nothing 1t observed during the first week in
August when those operators whose business it to
keep close watch the grain situation called
ton and began change their plans accordingly.
1t kept secret from anybody. Brokers' and
mers reports the personal inspection of wheat regions
by grain statsticians and investigation of elevator
corporations all gave the deterioration of the crop wide
publicity But it received with skepticsm. 1t
considered many quarters crop to manipulate
quotations. Two weeks ago The Call pointed it and
reported that Wall received the adverse reports
with smile and the remark that this the time of
the year for crop The Call also printed report
from party of Investigators that the trade would be
stunned it realized the of the damage 1t gave
full accounts of the increasing outcry OF rust"
All this went for about ten days when the wheat
trade woke up it. Then the excitement began and
has been raging since, with the market extremely
nervous and quotations rising with unusual rapidty.
Europe added its fuel the flames, pointed in
this column at the time. by reducing its crop estimates
all along the line Now everybody realizes that there is
trouble in the spring wheat districts and that the rust
injection has extended from the three
and the Dakotas-into Manitoba.
How much these reports exaggerated if ALL re-
mains to be Of the bull spectators will
magnify them all they possibly But there has been
damage. Even the Government bureaus always ex-
remely conservative, affirm that and reducing their
estimates of the crop But the harvest alone will render
the final verdict. When the threshng are in we
shall know all about it, and they are coming in now
Pages could be written upon the trade conditions
created by falling off in the volume of that wheat
crop, which gave such brilliant promise month ago.
Business currents have been diverted into channels
railr traf1 MA and have
radical changes aspect has been given to the New
York stock market export calculations being revised
and sets of figures arranged in many commodities
OF all this unsettles trade 1t makes lines
everishly active and others. The situation pre-
viousy established is ahoat like stray balloon 1t
has left the prosac ground and is feather the air
Until settled again and determined there
will be less uncertainty.
The crop also had its specer for day or so in
the form of dry weather which threatened 10 develop
into drought in the belt, but the rains that damaged
the wheat yield extended into the regions and
nipped this trouble in the bud They were two
edged sword detrimental to crop and beneficial to
another 1t is indeed i'll wind that blows no good
New York regards the conditions in the Northwest
with equanimity. The West nothing but grain
general farm produce and provisions But New York
has the whole country under its eye The disaster to the
wheat is something affecting section of the
country There other sections and other crops Out
of them all strikes general average and that average
is favorable Hence Wall street. though naturally in
Ruenced less by the conditions in the West
is governed by the general average of the country and
the market stands about the Money is the weather
which the New York eye is fixed and as the vane
still points to fair weather New York is satisfied with
the present outlook The fact is the country has so much
ready cash that it handle all vast business and
leave enormous amount in vault untouched Under
this condition 1t is needless to get excited loss Of
IS per centIo per cent week ago-in the wheat cron
prominent fnancer in New York thus sums I'D the
crop situation: Increase in value of cotton CROP $8o-
100000; increase value of CROP $Ioooooooo: in
in value of oat CROP $3ooooooo; total increase
S2Iooooooo; deficiency in wheat 100000; net increase
$I55oooooo This is the cold blooded way in which New
York regards the situation and it is the right way
The bank cearngs made favorable showing for
the week. recovering to ST ooo the loss from
the corresponding week in 1908 being only per cent
Half the important cities showed gain The failures
226. against 238 in 1903.
Conservatism prevails in the great industrial staples
Cotton goods buying sluggish and is responding to
the reductions in beached goods wholesalers are ex
pectng lower quotations later There is fair demand
for wooden goods but the wool is so high that manu-
facturers proceeding with caution number of
tanneries have closed down account of the scarcity
hides caused by the Western packnghous strike and
leather has gone up half cent. wholesale reduction
III steel prices, notably wire nails announced and
uncertainty how far the reductions will extend re-
stricts buying In addition, pools in iron and
steel products reported shay hence the iron trade
is still far from being in stable condition
Provisions still lack snap Western packing centers
Reports from these points say that the acueness of the
strike is and that conditions in the industry are
getting back to the normal and the strike itself has
lost Importance under the overshadowng influence of
the wheat shortage. 1t is still more less of factor