The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-02-13
The Business Situation.

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The week brought into the wheat
market development more important
than anything witnessed since the
present price advance began. 1t
brought the first substantial response
from the foreigners and put the
American markets much closer. to an
export basis than they have been for
some time. LIVERPOOL altho higher,
was relatively slow the continental
markets leading, Berlin: made a. gain
equal to 2Ac a bushels in: our money.
Paris gained 2Ac, Buda-Pesth sac,
land a number of French and other
continental country markets. lying in
the "breadbasket of Europe" are up
from &c to 70 over prices Of a week
! ago. : = '%.--. + -
For months the American bulls have
tcarried on their campaign alone.
Starting on the theory that there was
a shortage of good wheat. in America,
they have since seen their assertions
well borne'out by the lighter move
ment Of grain to market The De-
cenlber government report covering
the American winter wheat crop now
in the ground showed a smaller acre
age and lower condition than last year.
A big Chicago interest entered the
bull ranks openly and helped, and
finally the far eastern war cloud burst
into flame. 80 - r.. =, -. -: -
From 76c to e5Ac the rise Of Min
neapolis May wheat has been .continu-
Gus, it's course marked by the usual
setbacks and >'shake-o OUTS but with
1 the tendency Enthusiastically upward.
: The bulls have never d QUILTED that
r their position was .invufnerable, in so
e far as it was based upon American
: conditions of prospective supply. The
e one discouraging feature has been. the
n apathy Of the foreign markets, their
= reluctance to follow. and the conse-
o quent difficulty Of maintaining prices
0 on; export parity <.2"<:
: That Liverpool, getting about $780,
e 600 blu of wheat every week from
5; Argentine: and 100000 blu. from
= Australia, should hold back was not
v surprising. There, has been plenty of
|, wheat in sight for English importers
d and they are proverbially independent
r in attitude, anyway, Altho Australia
al will soon exhaust her exportable sur
J. plus at the present rate of shipment
st. Argentine has good supply this year
IS: and so the matter Of the supply situa.
% ton in, America has been almost ig.
w nored abroad. ,,..... :a..n@.nt:
,s This week the foreign markets
,s: woke up, and instead of small gingerl!
~: responses to- strength originating: or
"a the American sidey there: were ad
vances quite independent of our mar
kets. 1917: r.. >:
is The. Russian-Japanese = war wa:
vs prime cause for the. stronger foreign
~ tone, with the talk Of a possible Tur
o key-Bulgaria imbroglio a good sec
ond But the bulls argue itha
60 while these things have worked 'o1
- sentiment abroad, it iss[1lot to, b.
~ doubted that the Foreigners are ais
-. beginning to believe that there i
- something after all to. the America
49, reports of short, milling wheat sup
10 plies and an unfavorable winter whea
outlook, a., - .. s--,<-s. ~ 49, +. r{.st
~ Because prices are we'll above las
year, some have assumed that the
10 are necessarily too high, and this ar
i0 gument has had some. weight With
~ a. day or two. Should it develop, how
'o' ever that we, can, do a, free, expor
ia business on the present basis" thi
IN would not hold good for. a ~momen
en- The, strength abroad makes it not un
e reasonable to- expect that wheat o
ne flour export sales Of large volume ma
as be reported before long - u ~ y
no Not within the memory of observe
'e- ton covering a number of years, hay
by there been so many varying element
'n.s as have entered this week into, tn
or business situation "A number: {
he events any one ordinarily a factor, {
IDS first importance, have been crowde
nd into a six-day period. Influences large
* " depressing have come upon tt
Ter financial world, but there is not muc
lot Of bad effect. to show for it.. =
Sc. The feature of the week, and "a su,
prising feature, was the steadiness I
j.. the American money and. securiti
- markets., and the small declines
,a+ prices Of stocks Precedent faile
an again, and a,series of@oecurrences tn
fo,, might reasonably have been e
isa pected to cause great ';unsettlemer
), ut lowered prices only moderately:
for When the opening of the wee
re- brought reports of the great Bal
itv more fire, first thoughts. in Wall. sire
:tle were of the bad effect likely to be .fe
ell Nor was this looked for only becau
OF such a calamity would naturally CHI
err sentiment That the enormous bull
viii ing and merchandise losses weu
ose mean the turning into cash of mai
ich holdings Of stocks and bonds for o
M tanning new capital was to be
ore pected, and just how hard the insu
og- anee companies had been hit and
s