The Richmond Virginian. (Richmond, Va.) 1910-1920, 1911-08-10
CROP REPORT IS
BLOW To MARKET
STOCKS sTAGGER, THEN SINK TO
NEW Low LEVEL IN LAST
HOUR.
BILLION BUSHELS LESS
COST OF LIVING TO BE HIGHER
AND RAILROADS MUST ALSO
EGoNoNIzE IN WAGE
SCALES.
tBy Thomas C. sbotueli =,

NEW YORK, August staFger-
ing Under ths blow Of government
crop report that was bad beyond the
imagination Of the most daring pessl-
mist In Wall street the stock market
sank 10 new low levels in the las;
hear to-day. George W. Perkins had
Just succeeded in winning from the
congressional Investigation commit
tee admission that the constitution Of
the United States sian lives and that
a citizen need not therefore testify
against himself. The Atchison rail
road had just made formal announce
ment that IL would issue 500. 600, 600
OF new common stock and sell So
Voe.Vo0 OF preferred, This looked
ike preparation for prosperity. Just
then the crop report came
The market had been irregular all
day. but as the hour approached for
the crop report II became stagpaut
sffd trading ceased entirely FOR few
minutes. The announcement was made
st Zi5 o'clock. which ~ the time
fer closing the grain exchanges and
is also, ny reason Of certain technical
rules Of the stock exchange. the
psychological moment In the stock
market. ON appearance of the report
the market made slight upward
movement The reason for this was
that the governments figures were
$40 Surprisingly bad most Traders
thought there would be some correc-
ton. Some short covering began I'M
nlediatelT and ii was ten minutes
before the financial world realized
that something akin to disaster
had swept over the grain fields Of the
nited states Then prices melted.
Billion Bushels Less.
a IN ha
the government to-day there viii be
nearly billion bushels less OF grain
harvested this year than last year.
The potato crop ia 90. ooo coo bushels
short Hay is slightly better than
expected to-day's figures indicating
crop <trEs@g S2rS.ss314ae, .s,rs 4sns,ef
that or last year whereas preliminary
figures had placed the shortage at
about 100000 tons At prevailing
prices the shortage in grains has
asts@ Ra3ise mf aisoat a5}s.aee $50, yte
hay shortage s2Ao, GOO 600 and poia-
toes. $50, 00e. 600 Al the very least
Thus. there is an indicated shortage
In farm values cf at least one billion
dollars.
In the face Of this crop report by
the government the demand bv shop
men of the various railroads of the
United States for higher wages he
comes interesting and intricate. The
crop report makes II certain that the
cost OF living VIII he higher for the
next twelve months and that the vol
ur1a or business done In the country
VIII not be materially greater than
at present.
Must Economic.
1T would not be correct to say hard
times are at hand, but It will become
necessary for the people to econo-
mize The fact that the railroad
shopmen VIII have to pay more for
living with make them more insistent
for an increase Of wages. but the
fact that the railroads are now sure
they VIII not earn enough 10 pay
this increase Of wages Without reduc.
ing dividends Will make them more
firm in refusing the demands
Attempts of the American Tobacco
company protective committees TO
compel the minority bondholders to
accept new securities as agreed upon
by the majority OF hondholders will
create serious trouble If persisted in.
The only fair way To adjust the Sc
curities of the American Tobacco
Company will be 10 announce retire
ment of all the preferred stock and
bonds In exchange for new common
stock. The terms OF exchange should
be such as will be equitable. but every
bondholder must have the privilege
of accepting either the new stock Of
fered to him or par in cash.
Sales of stocks to- day sos.seo:
year ago f47, 49s.
Par value of bonds sold to-day
81 s03. 900. q year ago $l.4ae,0Oo.