New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-07-10

i+s rate and Atchison's president was on
ona day detected talking without fra
and birthstone coating all his sylables
Interstate Commerce commissions,
rvere spoken of occasionally with respees
standard Oil no longer wanted troubled
,Caters. For all Of day and half N.
Stock Exchange was ia agreeable mood
Then came the government crop report
exhibit inoculating the whole situation
anew with maudlin Indebtedness.
That crop conditions are unsatisfactory
was appreciated by fair observers befOrs
Fridays official report issued; the gov
eminent statement was but tsbulation
and Qualification. Wall Street has M,
challenged much admiration for inteuI-
gence in having persisted so long in az
fecting to doubt the news Of droUth dew
astation. Proofs have been manifold
and intrusive-and they are not revealed
as any sudden surprise Yet stock mar
ket leaders" have branded every lot Of
damage information as falsehOod invent
ed merely to help grain speculators-s
policy which has done harm 70 the ac-
counts Of stockholders who trusted their
protests. To have faced disagreeabIs
situation frankly would not only have
been honester but more profitable vastly
as terseIy was advised weeks ago in a
forecast by the head of the Stock Ex-
change house of A. J. Wright & Co., h,s
information at first hand from experts
sent by him personally Throughout
Northwestern grain districts.
Damage" Mr.. Wright then wrote. ia
a certainty. And it will be extensive II
does not depend upon what may hereafter
happen weatherwise; 1t is assured by
what already has happened Even now,
at the beginning of the season, drouth
is a calamity. 1t cannot be cured in the
course Of ordinary circumstances. u Is
nkeiier TO grow worse Wall Street viii
deceive itself extensively If it listens TO
representations that poor crop prospect
reports are untrue. The truth is more
discouraging than even extreme reports
Indicate"
In every way comes verihcation OK
this forecast-what A J. Wright was
bv personal investigation able early
to learn Wall Street now later learns
with elaboration. The average condi-
ton of spring wheat as officially re-
ported by the Department OF Agri-
culture declined last month over 81
points out of a possible 100 and is far be-
low any comparison condition Of recent
wears Coming at a time when exports
OF wheat and wheat products are Sc
riously curtailed by reason OF increasing
domestic consumption and resultant high
prices there must follow serious conse-
quence TO international trade balances.
Of course, there is compensation TO soma
extent in the good condition Of the grow
ing corn crop, but this has slight In
fuence on our export conditions COM
pared with wheat And this damage to
spring wheat comes in territory where
replanting with other crops is not pos
sibIe Damage to winter wheat at an
early date can always be more or less
offset by repIanting with other cereals.
This cannot be done in the Northwest,
where damage is irreparable-
But the current bad crop disclosurs
loses somewhat its natural and logical
depressing influence for the reason that
there are ardent efforts just now In
every Wall Street quarter TO seek rea-
sons, even excuses, for optimiSn1-or ar
least for recession from recent prevalent
pessimism. 1t is not easy to find war
rant for this developing new attitude
but that such new attitude does develop
is not TO be gainsaid-and only insincera
spectators will affect to doubt the exist
ence and the influence Of this suddenly
sprouting factor.
1t is popular to calculate that the
stock market is handicapped by an ex-
tensive short interest, that virtually al
the active trading elements are upon the
bear side. that quotations are more or
less forced down by speculative pressure.
1t is doubtful if there is really any very
great short interest Sales that have
been largest in conspicuous parts OF the
market during recent weeks have not
been sales for the short account, have
not been speculative sales-have. IN
fortunately, represented liquidation OF
stocks actually owned. liquidation en-
forced, in relatively few cases voluntary
What was stated in this review weeks
ago is unhappily verified day by day
there has come into the Stock Exchange
veritabIe sweep of liquidation. sub
merging values.
The ensuing fortnight is likely to be
test for security market values The
takers of Wall Street have all suddenly
Topped over TO the bull side They are
full OF pleasing expectation and they
spiel voluminously- Their chief argu-
ment is that prices Ought to go up
They scorn to discuss the mere Incl
dentals of possible money market
squeezes. net earnings decreases. OF
liquidation further forced They just
agree that quotations must be advanced
because they ought to be advanced, for
Wall Streets comforts sake This sort
OF logic does not always sway Stock tx
change prices. Yet il is difficult 10 ma
anywhere anything more specific thah
this empty recitation in favor Of security
market inyigoration- The fact is (noW-
ever much they who are most inVoived
may desire and try 10 disguise the faeL
that what has recently been far anu
away the most potential of influences
has TO do with liquidation of the asset
holdings OF corporations. individuals II
the millionaire class as long ago as
April and May were letting their own
possessions go; what lately has Occu,
pied their attention has been the careIu
Of stocks from the treasures
Or the corporations they direct IL is out
IdleneSS 10 doubt this programme Inc
of the procedure cannot %
long officially hidden. Forthcoming an
lual reports will in many an inStaHSo
provide atteSting revelations II tH0
Hartman quarter there NAV be eXCSR
-ionally interesting disclosures.