The Minneapolis journal., 1904-08-20
The Wheat Market.

ALI week the attention OF the COM
mercial world has been directed to-
wards this city, for under Minneapo-
lis leadership the continued rise in
wheat has developed into one of the
greatest of bull markets-the great
est legitimate bull market in wheat
for more than a decade. Original
bulls, who, when September wheat
was at S0c stood for the dollar mark,
have seen their predictions, then con-
sdered daring, much more than borne
out.
Against the upward trend there has
been feeble resistance. The market
has passed the stage when ordinary
rules or differences hold good, and
when the nearby option reached the
neighborhood Of $1.20, conservatism
was thrown to the winds.
1t would be folly to place a limit
upon the rise. That the crop has
been very seriously damaged does not
permit of doubt; hence, in that sense,
Z this is a legitimate market as distin-
guished from manipulation or attempt
at a Corner" How great the loss in
quality and in quantity is beyond the
power of any one to approximate.
Time will bring out the supply stu
alton more clearly, and such final
price adjustment as may be found
warranted.
The grain trade proper will govern
itself sanely according to the circum-
stances of the day or hour.
To the public, drawn into the vor-
tex by the general excitement, there
is little to be said. Opportunities for
large profits from small investments
appeal too strongly to the speculative
bent Of the American mind to fail tc
attract, and many will venture. Wher
once the public enters a speculative
market, sentiment works into pre-.
dominance-and no one can gage
7 sentiment. 1t is we'll to remember
that, as opportunity for quick actor
increases, risk increases in CORE.
spending ratio; that whatever goe
too high comes down again, and that
however high wheat is finally to go
1t cannot advance always.
The feature of the week has beer
the awakening of Liverpool. For Z
fortnight the foreign responses t
American strength had been half
hearted, for England draws he
4 breadstuffs from the world, and ever
and spring wheat crops of our coun
try failed to alarm her. Sure Of (
! liberal supply from her Canadian
fields, she viewed the crop losses will
eauanimity; but, while Montreal am
Winnipeg were sending roseate view
of the Canadian crops, Minneapoi
4 told her that black rust had crossed
the line into Manitoba and that
large area is endangered. This spreat
i, the alarm abroad and brought tn
!, foreigners to time.
While the market is certain to cove
4 wide ranges, and the advances of 5 t
z cents day are likely to be FOLLOWED
by recessions equally great, it is no
il ut all probable that there will be re
turn to former low prices for a Ions
I time. France has fair crop, but Il
Prussia, Austria-Hungary, Rumani
Fl and Italy the returns are disappoint
fng. The winter wheat crop Of Amer
e lea is under last year, the sprin
wheat yield will be smaller, and noy
the Canadian northwest crop is threat
- ened India has large exportabl
surplus and Argentine is promisin
well, but worlds reports favo
strength on the whole.
The year will live in northwest his
tory as one Of the most unseasonabl
and unfavorable for wheat eve
known. The season was late to begi
with, the seeding delayed and the GRO
start two to three weeks behind MOI
NAL time. Then followed g lon
period Of unusually cool and we
weather, leaving the plant in weak