New-York tribune., 1904-08-21
The Financial World.

basiS-the whole country nooded with extraya-
CANT tales of grain destruction. some of the pro-
fessional usaners of crop distress proclaiminy
that we are to have virtually no wheat at all
OF course. there has been some damage; IN
certain parts of the Northwest 1t may be tina,
damage is grave But that the wheat crop has
been hurt to anything like the extent which
crowding special dispatches from speculative
sources represent. Is believed by nobody who IA
fair-rninded There is a waiting market for every
bushel of this years wheat-whether maximum
prophecies are made good or whether the figures
fall even to the low estimates of James ]. Hill
Moreover, the bulls on wheat this year hays IN
their favor factor never hitherto available
the West rich in ready money. realizing thar
last years crop surpluses are out OF the wav
able and anxious to take part in dealings upon
the Board of Trade.
Advances throughout the week were OF violen,
character, becoming most marked IN the CLOSING
trading. The main factor since Wednesday was
the report of serious damage TO the Manitoba
crop There can be no question as to the bullisa
effect upon American wheat should the Mani
toba crop suffer much damage, but to conssrue
1T into bear argument on American railroad
securities is ridiculous. few roads tapping the
Manitoba district would suffer diminution a,
trafic-the 500 system. for example-but the
general effect of Canadian shortage OF whea,
fha+
it would diminish competitive export power 70
the extent OF the reduction OF Canadian Weld
and make the sale Of any American surplus car
tain at high prices. And II must be recognized
that the price of export surplus is the main se-
ment in fixing the price of the total crop. Stn
IT is not surprising that security market traders
watching the wheat dial should get alarmed ar
| the amazing advance recorded and feel disposed
to take the short side of securities because such
| 4 trader is always under the influence Of the
| considerations of the moment; but thoughtful
| men will not sell railroad stocks because
| Canada is threatened with decreased wheat
yield. very little reflection will suffice to show
that Canada's loss would be Americas gain.
Even were the loss IN wheat to be as severe
as the most ultra bulls on grain affect to be-
lieve, there would be in that fact no warrant for
security market hopelessness. Other crops
corn. cotton hay and the rest-are still to be
counted upon for extraordinary yields: and even
/ IL we have speculatively predicted corn crop
| damage. there Is wide margin for deterioration
| from the condition reported by the government
August 1, still leaving the certainty Of enormous
harvest.
What has disturbed the oracuIar philosophers
/ OF the Street Is that stocks have had the tener-
! ity to advance coircidently with the rise IN
4
ing privileged to rise superior TO facts; and thus
/ In many quarters has developed an attitude an
/ tagonistic to the stock markets equaninlty II
/ wheat has the right TO go up. it is Justify ar
/ gued. stocks on that very account ought TO go
| down. This free and easy manner OF deternin-
| Ing what should be ignores. however, what are
exceptional elements IN this years situation.
| The railway corporations OF the country are
| healthfuly situated They are sure of traric IN
| abundance though the wheat yield be as low as
| reckless calculators choose TO insist And there
! is assured for the coming fall and winter IN
crease OF traffic OF one class-west bound traffic
| TO a magnitude not before approached; and 4. is
/ west bound traffic that pays the railroad best
| Agricultural commodities yield revenue more
| slowly than does freight constituted Of manu-
| factured goods; and sensible people In Wall
| Street realize this amply every railroad mani
ager in the country being agreed on the subtec,
and every railroad report testifying to r-just
as every Western railroad man OF experience Is
agreed. too. that this year the West will buy
| goods IN the Eastern market on a scale far be-
yond the past's highest record.
Dividing interest with wheat.s perrorr,ancA
has been the open cutting Of prices by the United
States Steel Corporation. Some OF the announced
reductions are substantial and Wall Street bears
have hurried to herald destructive trade war
That Is not according to the facts. In almost
every department of the steel trade II has for
some time past been well understood that large
orders were impending held back only by the
hope that something might develop TO help buy
ers get some concession; and the reductions that
take place are actually only the disclosurs OF
disposition upon the part OF the steel trades
controllers to hasten the booking OF such orders
| The immediate net result OF this Is that soma
mills that might have been temporarily closed
VIII now be kept busy while others already
| closed will be forthwith opened There Is moth
| ing new in a trade condition like this. II Is
so In the history OF every great commercial and
Industrial enterprise-frequently sO-and there
isn't an experienced hard-headed man OF affairs
who fails TO recognize the wisdom OF Just such
/ policy that which the United States Steel
| Corporation now makes operative. Over actual
trade war there appears to be apprehension
among those. at least who. were such war
threatened. should be NEST apprehensiva
| Earnest efforts are made 10 have It appear
that John W. Gates is bent upon steel trade de-
moralizatiOn in order TO facilitate some mys-
| terious ambitions OF whose details even the most
| voluble pessimists are able TO give no hint. Nj
/ Gates refuses 10 dignity the talk about himself
| by discussing 1t In any way.
| Another incident over which there has been
| ado appeared in the sale OF some tens OK thou
/ sands OF Sugar Trust shares 1t was ngrida-
| tion. vehemently cried out every bear IN the
| Street; and forthwith there proclamation
| that Mr.. Hayemeyer and his associates were
| nervous over threats OF new competition sugar
! Trust stock has held however. with suggestive
i nrmneSS in the face OF such market transac-
| tions. Somebody of size has evidently been will
| ing to take all the Sugar Trust stock Offered
| without seeking any great concessions.
| OF course We have had much hippOdrorlins
| OF the strike IN the building trade and sue
| other labor difficulties as can be made 70 serfs