The Washington herald., 1907-05-18
FALL IN BOND PRICES
Effort to Bring About Adj
YanceS in Stocks Fail.
WHEAT OPTIONS AGAIN RISE
Amount of Business OF Grain Ex-
changes Larger Than for a Decade.
Rise in Sterling Exchange Be-
Iieved Due to Panic in Wheat.
weather Conditions Watched.

New York. May IA considerable /
increase in the volume Of stock ex- /
change business to-day, and further /
weakness in security prices was un- /
doubtedly referable to a very excited |
resumption of the current speculative |
movement for the rise in grain. At first |
to-day the stock market was almost /
lifeless. as it was yesterday. but in gen /
eral. up to the afternoon, evinced a /
slightly stronger undertone.
The continual falling off in bond
prices. however. excited general atten-
ti0n. and although the foreign markets
displayed more interest in the course of |
values here than they have done az any
time throughout the week. efforts to
bring about any broad advance in
prices were obviously attended with
difficulty. The greater strength shown
in the London market seemed owing
for the most part TO the covering pur
chases of bear operators, i'm view of the
three DAYS Whitsuntide holiday there.
which begins tomorrow.
A rather sharp buying movement in
Canadian Pacific stock. which advanced
the price Of the stock at one time in
the forenoon over four points, was said
10 be due 10 English investment pur-
chases, but was more probably caused
by the retirement of speculative con-
tracts for the decline recently extern
sively put out in our own market.
The advance in this quarter, however.
did not bring any stimulus to the mar
ket as a whole, and when the wheat
market began its sensational advance
late in the day quotations for stocks
almost uniformly receded.
Public SpccuIates in Wheat.
The rise in wheat seemed to be brought
about. according to all trustworthy aC-
counts emanating from the produce eX-
changes. to a tremendous influx there of
popular speculation in the commodity.
Prices OF the leading wheat options
again advanced to new high record levels
for the year. and it was said that the
days business in wheat in the markets
here and in Chicago was greater than
LEaA ALlNAn btLNlE III iilt ll t-t.-Ll AtlaAI-
The wheat markets were, in fact, excited
and damOralized 10 the last degree. No
particular reason for the upheaval was
in any way afforded. Reports as % the
condition of the growing grain We're great
" confused. stories coming from equally
responsible sources that the green bugs
in Kansas and Nebraska were fast dis
appearing, and that their Tayages were
extending.
The same conflict Of statements was
witnessed regarding the important mat
ter Of the amount of spring wheat seed
ing done TO date and likely TO be done
during the season.
It was declared, on the one hand, that
nearly the fun normal area Of spring
wheat had been sown. and on the other
that q reduction from i to . per cent
in area planted had either definitely
taken place or was likely 10 occur on ac-
count Of the short season of the crop that
seems not definitely promised.
It looked like a matter, however, IN
which the public was buying for the rise
irrespective Of the news.
sterling Exchange Rises.
In banking circles to-day more atJen-
ton was paid 10 a rise Of one-half a cent
IN the pound in sterling exchange than to
the wheat market, although il is not im-
probable that the rise in sterling and the
advance I'm wheat We're not entirely dis
connected Sterling rose to-day 10 a point
at which. upon little incentive in the shape
Of offers to pay interest on gold in transit
by European purchasers of the metal,
4frrF.F DO
Indeed. it was known that paTieyings
looking to the export Of gold. were under
way although IL is clear that right at
the present time the degree Of profit in
such operations would be slender.
The relation of the course of sterling
exchange at the present time to the
wheat market is that it appears likely
that the country will have only a small
exp0rtahle surplus of wheat this fall,
bankers who have sold bills Of exchange
with the expectation of covering them
through purchases of wheat bills I'm the
autumn viii be inclined 90 protect these
sales in the exchange market of the pres
ent and immediate future There is little
doubt. i'm other words. that any really de
CidoI shortage i'm the amount OF wheat
I'm the United States available for ship
mont TO foreign countries az the usual
time later in the year viii he productive
OF q strong foreign exchange market, and
probably gold exports from the country.
Prophecy Now Is Useless.
The whole matter is manifestly one Of
many complications concerning whose
eventual outcome prophecy just now is
idle Il seems TO be admitted that al
though on the face of things the foreign
tfaaa balance is in our favor, vet offsets
10 this I'm the shape Of finance bills and
other private borrowings I'm Europe 10y
American bankers are sufficient to place
Us in Europa's debt; and whether we set
tie this debt through shipments of gold
or commodities depends upon the rela-
tive current value Of money in Europe
and I'm this country. and what the out
como OF OUT harveSts VIII be.
Tho weather conditions Of the next
two months viii obviously have more 90
do with the answer TO these inquiries
than anything else. Of routine news
items Of the day, and the only one of inn
pOvtance. was the publication of the an
nual report OF the earnings of the Inter
borough Metropolitan Company for tho
year ended March 81. showing a deficit OF
Sl3i7,0Q0 as compared with a deficit OF
S2,3n,Co0 for the corresponding period las;
year
Estimates Of tO-mOrrow's bank state
ment were Of a satisfactory tenor. They
indicated gain by the banks Of in the
ne!shborhood Of $4,000 although on
their transactions with the subteasury
the banks have gained less than S1,01o,-
0Co This IS in accordance with the fig
urcs Of domestic exchange. showing q
heavy movement Of money TO this center
from the interior Of the country.
NEu VOuE. nYONT7T