Los Angeles herald., 1907-05-14
RISE IN WHEAT
AFFECTS STOCKS
RUNAWAY MARKET CAUSES A
SETBACK
Canadian Pacific's Decline Reflects
Uneasiness over Backward Seed
ing Time in the Northwest.
Bonds Irregular
By Associated Press.


NEW YORK, May 13.--The runaway
wheat market caused q monentary set
back to stocks today, prices yieldlng
most of the opening gains in the course
Of the first hour. The market gatnefreidi feii
force, but the volume of business IelI
away to almost nothing. Speculatlve
interests seemed to be almost Whoily
diverted on the stock market Tor the
time.
The strong undertone in spite Of this
total neglect was very notable. Some
special effect was produced on atcni
son by the excited rise in wheat ana
Canadian Paciflc's decline seems TO re,
fleet uneasiness over the backward
seeding season in the Canadian north :
west Elsewhere the influence OF ths ne
wheat price movement was conhneu
mostly to a wiping out OF the early au-
The top level of prices was touched
after the sensational opening quota
tions for wheat were received. Ine 70
seemed to be to attach considerable Q
weight to the contributing causes TO
the strength in wheat in addition TO tne
present condition of the western Wheat
crop. =. ,.o,, ;+s
mart in the strength Of wheat and In
making better prices for our own crop' ~
The largest reserves in farmers hanus'
according to the government STATISTICS,
gives promise of handsome profits TO
offset deficiencies of this years crop.
The argument was heard also tnat ~ the =
cry of dollar wheat when swept .is 's
effort to Increase the sale of spring
wheat There is some skepticism 1eit
over the reports of crop damage as TO
the extent of the harm done, :. 49,
The undertone of strength In tne
stock market, however, was due 70 an
important extent to sympathy Win Ine
strength in Union Pacific. That STOCK :
rising tendency is variously attributes,
to the better opinion OF the ~ ,hdncin, tn in
some support to hold up the price OF
the stock and also add to the attrac
tiveness of the offer of conYertlDle
bonds. Reading was seconains eennf in nf
fluence to the sustaining eHect VI
Union Pacific.
Covering operations by an outstand-
ing short interest were given credit Ior
the rise in that st0Gs
owing to rumors denying former re-
ports that the dividend rate on the
stock was to be advanced. United
States Steel also was heavy.
The controversy over defective steel
rails started by the Southern Pacthc
authorities was a decided advantage TO
the United States Steel stocks. Money
markets were quotably frmer ABROAD
and the firm tone was maintained here
also. Paris was again buying gold IN
the London market and took $1,25O,OO0
of the $4,000, 900 in spite of the advance
in Bank Of England's bid for the
supply.
A withdrawal of over a. million dol
lars from the Bank of England also
went to France. Money markets are
rejecting to some extent the expecta-
tion of further large borrowings, es-
| pecially by American railroads. The
| increasing premium on New York ex-
change at Chicago indicates the prog
! ress of remittances from that center
| Union Pacific and Reading were the
principal features in the strong close.
Bonds were irregular. Total sales
| par value, $1,136,000.
United States bonds were unchanged
on call.