The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-04-10
GRAIN And STOCKS
TAKE A TU MBLE
Government Report DiSap-
points Spectators.
PRICES UNDER REIMBURSEMENT
High Cost of Commodities stimu-
Iates Production, which Manifests
Itself in Larger Averages of Grain.
Accommodations of Copper, and
Lower Quotations on Glucose.
BY j. CLINTON RANSOM.

BY j. CLINTON RANSOM.
Every week evidence accumulates that
the first and important result of the
high prices of commodities for the past
six months is that production has been
vastly stimulated, and that adjustment
of prices Will be reached on lower level
before many months. barring some I'M
looked for disaster to agriculture or
finance.
The latest proof of this is found in
the government crop report issued during
the week II showed that while the con-
dition of winter wheat, for example, is
less than that OF last year, the increased
acreage will more than compensate for
the loss. Besides, the government is not
vet In possession of facts sufficient even
to guess at the enormous production in
spring wheat which will follow the high
prices of the winter months.
This government report was sufficient
TO put further breaks upon the specula-
tive wheat market, and the longs have
had several days of nervous and fltfui
effort to save their holdings. The govern
ment report shows that in the State of
Kansas alone the deteriorated condition
of the crop, which was only a fraction,
was on So $4,000 acres, as compared with
3lO54.OOO last year. and this kind of in
crease in the acreage is seen in nearly
all the wheat producing area.
Copper Production Increases.
But the grain fields are not the only
point of increased production growing
out OF the high prices. The statistics is
g
Association disclose an accumulation Of
metal, not of 100000 pounds, as pre-
dicted, but of 100000 The announce
ment OF these figures broke the New York
stock market with the cOppers leading
in the decline.
When pressure came the market showed
an utter lack of support. bulls of every
type being scared TO death over the grain
situation. the over-productiOn in copper, /
the dulIness of lead. the plenitude OF rub
her the unsettled state of the iron mar
ket, and the troubles in the coal fields. /
Even the most optimistic spectators
could not he brought TO face the market
with courage. and during the week Securi- /
ties have had another serious decline, /
from which there is small hope of i'm |
mediate recovery.
investors Seek HOnds.
During the past week Information came /
TO Washington from sources of unques- /
TONED truth that SS0Co,000 in the best |
class of railroad bonds could be had in
New York Many of them were In the 4
per cent class, but still reliable securities. !
Less quantities Of per cents were TO be
had at lower premiums than at any time
since 1907, and a still less quantity of 6
per cents were available for purchase. |
Several of the Washington bankers were
in New York at the close of the week |
investing in this class of securities.
While there is use for larger sums of |
money locally this spring than was the |
case q year ago the accumulation in the 1
banks is more than ample to meet these (
needs. and is seeking investment in vari- |
Gus ways, just now in good bonds with /
secured principal and interest. Outside |
of the banks many individuals are buying |
bonds, and even stocks at the prevailing /
prices for investment purposes, thus TAX /
ing them more or less permanently out |
OF the field of speculation.
Does Net Advance Prices.
lhlS, under ordinary circumstances,
would have a direct tendency TO raise the
prices Of securities, but for months.
owing to the return of money from the
original sources Of production. due to
the high prices OF commodities. the finan-
ciaI balance has been such as to keep
the prices of investment securities at
lower levels than most men expected.
Notwithstanding the high prices OF ma
terial which have prevailed during the
first quarter Of the calendar year and
the last quarter of the preceding year the
Corn Products Refining Company was
out during the week with the statement
that the prices of its products have been
permanently reduced 1215 to 10 points.
This concession is made. the company
says that it may control its share of
the countTy's business, and it is safe
to say would not have been made for
any other reason. Glucose and starch
are the products to which these reduc-
tons chiefly apply. and this means at
least one important lessening of the
drain upon the pocket of the consumer.
The situation ar the end of the week
is disquieting to the speculative inter-
ests as the outlook is anything but
good, but to the community generally the
adjustment in values going on is wholly
healthy and assuring.