The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-06-28
WALL STREET NEWS
Declines Due TO Alarm Re-
garding Spring Wheat.
DAMAGE NOT IRREPARABIE
News from Corn and Cotton Belts
OF a Favorable Charaeter-Stories
Circulated Regarding the Health
of Prominent Financier Quickly
shown 10 be Utterly False.

New York. June 27--Deelines. which in
their extremity ran from two to consid-
erably more than four points In the
leading and active shares. occurred to-
. day in the security market. The market
closed. too, nearly at the lowest of the
day. The ostensible cause of this was
further perturbation regarding the con-
dition of spring wheat. which was ac-
companied by an advance OF from one 10
two cents a busheI in the principal
speculative wheat options
This explanation for the fail in secur-
ity valuations was not. IL must be con-
fessed. universally accepted in financial
circles The agricultural news was GER
tainly not altogether bad. over Sunday
further rains, which were in some in
stances heavy, fell in various portions OF
the spring wheat district From other
sections. notably the Central and North
.ern Dakotas crop damage stories were
again received.
Damage Not IrreparabIe.
The general tenor of advices from con-
servative grain exports in the West was
TO the effect that no irrevocable damage
had yet been done to spring wheat. and
that the only fear was for a continuance
> Of the drought and hot weather in GER
tain parts Of the Northwest. Moreover,
the news to-day from both cotton and
corn belts was of a highly encouraging
sort. and led not only to a moderate
! fail in the price of cotton. but to a drop
of Importance III corn; and this last
named development was especially inter-
esting, inasmuch as it is one of the few
frna In, he
from one grain crop was so favorable
as 10 cause movement In the price of
the staple directly the reverse of that
displayed IN a sister commodity.
OF course, to-day as soon as the weak
ness in the market became pronounced
Stories were circulated regarding the
health Of a prominent fnancier. These
false and malicious tales have now come
10 be an invariable accompaniment Of
decline in security prices. and they have
really lost all force as even a momen-
tary and speculative market factor To-
day almost no attention was paid TO
them, and it did not need the presence
at his desk in his Office Of the fnancier
In question to lead to general disbelief
IN their accuracy.
Explanation Not Sufficient.
The truth was that no direct or sufic-
ing explanation could be offered for the
days fan In values. and as good theory
IS any in accounting therefor was the
renewal of heavy speculative sales Of
stocks by operators for the decline. which
had the effect Of inducing liquidation by
actdal holders
There is no doubt that encouragement
among those who either possess stocks
Outright or who have been carrying them
speeulatively for the result has been
somewhat Increased by reason of the
continued weakness of the market and
ats failure 20 show any notable degree of
rallying power
An unfavorable impression has certain
~ been made upon financial and specu-
lative sentiment by the continued harp
ing in general popular discussion upon
the sO-calied extravaganza Of the coun-
try as witnessed in the heavy expendi-
lures upon automobiles and other forms
OF luxury in the last two years.