The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-05-02
Past Week More PeSSimiStic
Than Early Season.
LIQUIDATION LEADING CAUSE
Prices In stock Market as a Whole
Were Lower, and sudden Harden
Ing OF Money, Together with the
DearIsh Attitude, Give Grave
Aspect to the Financial Horizon.


distinctly pesslmlstIc last week than II
has been at any time since the early de-
cline in the market this year eliminated
in the first week Of February.
Indeed, last week lower prices were
made In the stock market as a whole
than on any previous occasion IN the
year, and gloom was correspondingly
widespread in the financial district.
Doubtless much Of the responsibility for
the fall in prices was TO be placed upon
the shoulders Of spectators for the de-
cline, and II seems to be the case that
seven out Of ten professional market
operators are at the moment extremely
bearlsh in their views; but the main rea-
son for the break was actual liquidation
OF stocks, and 1t must be admitted that
the news last week was not favorable in
a stock market sense.
The announcement OF an advance i'm
the annual dividend rate on the United
States Steel common shares appeared to
have been discounted and was qualified
by a report OF smaller earnings for the
corporation for the March quarter than
had been looked for, and by rumors that
the iron and steel business and business
generally were less active heavy frost
over a large portion Of the West from the
Great Lakes southwark on Sunday a
week ago practically killed the fruit crop
in many States and did some undoubted
injury to early cotton.
Stocks Much Damaged
The damage resultant from this was. Of
course, greatly exaggerated I'm newspaper
81 ~Aa N,.-4 --aff
stock market any good. In the early
part OF the week almost record breaking
gold shipments were announced. bringing
the total gold shipments 20 Europe on the
present movement very considerably
above what was originally calculated.
Later on the money market. which had
been all along irresponsible 20 this drain
Of funds. suddenly hardened. The call
money rate advanced to I per cent.
price that was only exceeded once before
In the year. and then only at the time
Of the temporary stringency that in
variably occurs around January l.
An impression gathered that the great
contest now going on between the spec
ulators for the rise and SPECTATORS for
the fan in the cotton market might have
NAAp1' l'~blNS beAblt II was ended and
the prospect for the immediate money
situation was rendered less bright by the
fact that there was every likelihood that
the long delayed collection of internal
revenue taxes in England was about
20 take place, with possible unsettle-
ment. for a time at least. OF the intorna- |
tional money market Beyond all this /
the cumulative effect OF long period /
Of vague uneasiness and apprehension /
began to be visible in the financial dis /
trict.
Travel does not need 70 be long in order /
TO discover just what the true cause OF /
this general disquietude is. 1t harks |
back to slowly dawning, but increasing |
recognition by the people Of the whole |
country Of the unpleasant fact or what
seems 10 be the facts regarding the agri- |
cultural status Of the United States.
Gravity of the Outlook.
If it Is true that the farmers Of our coun- |
try are no longer producing grain and
corn in such quantities that the growing
population Of the country can be fed at
a reasonably low cost and that the coun- |
try can acquire a. formerly foreign /
financial trade balance based upon ex-
ports Of foodstuffs, II is obvious that the /
country is confronted with a situation
that it win certainly not be an exag- /
geration to call grave. Looked at theo- /
Tetically the case that is developing /
seems 10 be moving toward a national /
crisis
Probably the speeches made at the con-
ference on this subject held by various !
eminent men at the produce exchange |
last week were Of an unduly aIarmisr
character; but they illustrated neverthe-
less. how the people Of the country are
coming 20 think and talk Of the matter.
1t Is important 10 notice that a decline
in commodity prices has for some weeks
past been going on and that there is no
doubt whatever that the advanced level
Of these prices was due. primarily. TO a
certain extent 70 speculative buying for
the rise by capitalists or speculative
holding for the rise by original produc-
ers.
But the question will obtrude itself.
whether allowing for the full effect of
the subsistence Of speculation Of this ma
ture It can be expected that commodity
prices will soon fan to such a level as
will distinctly and materially lower the
general cost Of living. The largest wheat
crop in the history OF the country was
74S.OO0OOO bushels in 1901. Last year the
crop was 7S7,OO00OO bushels Now, con-
sidering the way IN which wheat is be-
Ing consumed by our people, II is con-
tended by many economic authorities that
the crop, IN order to make food as cheap
as IL WAS bpfOrp ought IN IN NJ 1ooc, |
100, eo0 600 bushels in excess Of It's present
annual yield. What promise IS there that
the production will soon reach this fig
Ure7 The same generalization, Of course.
also applies to corn and other staples.