The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-02-06
An Interesting Wheat Situation

ally COuHlIy GILL ne stfuSteu W luke meas
ures for the general good. s.,e,
An Interesting Wheat Situation.
General public attention has been
diverted in part this week from routine
business reports, by a succession Of
violent price changes in number of
leading commodities, commercially of
Importance and likewise highly specu-
lative.
Locally there has been evidence of
a great increase Of outside interest in
wheat.
The dollar wheat idea put forth in
these columns last summer, with the
argument based upon further supply
and demand situation warranting an
advance, and even then apparent upon
careful analysis, has been working
closer to the point Of realization.
No one then expected that the rise
would - rried Minneapolis May
wheat TO y4c by the fourth day Of
February. The original dollar argu-
ment was contention for an actual
shortage Of contract wheat in NAV.
Three months yet remain before the
maturity Of that option. The entry
of Armour into the market as a buyer
on a large scale, and the rise of the
war cloud on the far eastern horizon
have fastened what was due to come
later on in any event.
There is no city in our country in
io1, i,,ta i,,u &c
as in Minneapolis, the worlds great
est milling center and primary wheat
receiving point-the home of many
great elevator companies, whose stor-
age houses dot the city, and the lake
terminal points, cover the west and
northwest and reach even beyond the
line into the newer fields of the Ca
madam Northwest. There are thou
sands here identified in one way or an
other, with the grain trade to whom
the price of wheat from day to day is
a business matter Of prime i'm.
portance.
Aside from this. there is a lively anG
growing speculative interest here ir
wheat, second to none in the country
If there is a live commercial ques
ton in Minneapolis at the presen
time, it is: How high will May whea
ultimately sell? mo. man can answer
it. Any attempt at a~prediction ever
approximate, in a market in which
there has begun to be an increase o
outside speculative interest," would b.
extremely hazardous. .a@ s.5@t sIe<& -
In no other country is there so tire
mendous public speculative force as il
America. Power almost beyOnt
general realization lies in it's Ono
it is concentrated in any one center
or upon any one thing, ordinar
rules and comparisons fail a utter
ly as guides. When the, grea
stock boom was on two years, age
prices previously undreamed Of 'wer
made. The end came. Stocks fel
Wall street was no longer attractive
and the public withdrew. For d yea
there has been no public trading i
stocks, while scandals, suits at law
and stories Of apitalization an
gross mismanagement of great indus
trial combines, operated to XII
confidence, and prevent revival Of in
terest. A tremendous speculativ
force lay dormant.
In September last, coffee futures sol
in New York at 3.55c, the lowest o
record. There was no interest i
coffee. Bad crop reports began
come from Brazil, and later when tn
crop estimates were made, they wer
bullish. Speculation began. Out
side interest was attracted and coffe
futures reached $500 a few days agt
This was even beyond what the bull
at the start, had predicted, and b
comparison with 3.55c it was a senss
tional advance, yet. in June, 1887, De
cember coffee sold at 22.35c.
All the world has been watchir
cotton The boil weevil and the bull
ish government report were the oris
inal factors. Then came Sully an
Browne, the bull leaders. When CO
ton sold at 10 cents some conserv;
} tive men in the trade, taking up Of
lines of argument, said it was hig
They afterwards turned bulls at
cents Cotton has had great fall tn
: week, due in part to war news, b
the bull market was not checked III
til 1885 was recorded for July. Fl
twenty-nine years no such prices he
been seen, while for the cash artic
, figures were heard in New York n
reached in sixty-eight years - n
since 1896. (This does not take in
, account the famine prices, ranging
$1.9O, of the civil war period.)
Six years ago there was dolls
wheat in Minneapolis. After lor
bull campaign and some hesitatic
t around 80 cents, the first trade at
| was made at 1882 a. m. Thursda
April IA, 1898. That was the morl
| ing bull enthusiasm ran away vii
decorum, and the late Charles !.
; Pillsbury, substantial and honore
; citizen, who had predicted dollar whes
; marched in on the floor of the Mi
: neapolis Chamber of Commerce, fo
!. lowed by a brass band.
After rise to $1.04 the impre
!, sion became general that wheat w
/ too high and would decline. But
) April 8 May wheat was s1.13k, al
: on May 8 it sold at s1.62, the hig1
est figure ever recorded in MINI
) apolis.
! This article does not contend tn