The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-17
HIGH FOOD PRICES
MARKET SPECTRE
Grain Crops Fall Off, and
March Of Stocks Is
Halted.
ISM is CHILLED
Wall Street Depressed by Fear Of
Shortage in Necessities
Of Life.
ny CHARLES W. STORM.

Vi
Especial TO Tho Times Dispatchl
New York. August l6.-financiai
enthusiasm was chilled the past week
by the spectre Of higher prices for
food that doomed up on the economic
horizon. simultaneously halt was
called in the advancing column Of Sc
curity values. because higher prices
for foodstufts rarely go hand in hand
with higher quotations for securities.
The past has also proven that there
Is less none" available for investment
when people are paying more to fiji
their dinner pals"
Aside from the Improvement in the
prices Of stocks and bonds interest
has been greatest in the reports of
damage 10 corn, the greatest American
grain. The major proportion OF the
corn crop comes to market on hoof.
that is, III the shape OF meat.
Higher Meat Prices.
II inevitably follows that short
corn crop means higher prices for
meat, and the Chicago packers. reallz-
Ing this. sought TO prepare the public
for the shock by announcing that It
would within six months have 10 pay
much more than present prices II the
beefsteak is TO remain on the dinner
table.
Lack Of moisture has also left the
hay crop and pastures in bad shape. SO
that there lie a certainty OF increased
prices being paid for meat.
Experts figure that the combined
harvests % wheat, corn. oats, naxseed.
rye and potatoes Will be about
l.0oo,ooo.ooo bushels less this year
than last. The food markets.
however. win not be as bare as ex-
pected. owing to the very large amount
OF grain held over the last year by
farmers But for this big carry-over.
the prospective shortage Of grain
would be viewed with greater appre-
hersion.
The general food proposition must
be considered as not dangerous. but
acute all over the world.
Europc's Need of Grains.
Europe Will be larger purchaser
OF our grains this year. for the inhabi
tants of the eastern part OF the
Western Hemisphere have been be-
hind guns instead OF plows. II is es-
timated that Eastern Europe can
hardly make within % per cent OF
their usual production. 1t must nee
essarly call upon America 10 fill its
larders.
The trade balance Of the United
States Will in all probability be a swol-
len b. early exports of cotton at higher
prices than those prevailing last year.
The new crop from Texas is going In
at good prices per hale for early de-
liveries, This Will produce an unusual
good volume Of sterling for this sea-
son OF the year.
Humanity balks at higher prices,
and. for this reason, the demand for
high grade bonds has fallen or the
~ showed n disposition TO exchange
their savings for heh-grade bonds
yielding per cent, and selling around
par hut an advance of three or four
points has caused them &c lose all en-
thusiasm.
Evidence of idle Capital.
The rush OF bankers to participate
in the underwriting of the Southern
Pacific certificates OF interest created
favorable impression. and demon
strated that their Is plenty OF money
available for investment provided the
securities are offered on an attractive
basis.
F!nanciers were particularly graft
fed AT the large subscriptions for the
Southern Pacific Offering made by Eu-
ropean bankers. thus rejecting a Will
ingness on the part of the foreigners
TO lift the embargo that has been on
American securities abroad for the
past six months. Europeans are still
accommodating their gold as indicated
by the increased reserve OF KS Bank
OF England. so that their participation
in the Southern Pacific underwriting
syndicate is not believed TO warrant
any expectation OF rush BY Euro
peans to the bargain counter ror
American securities.
Steel Prices Decline.
Steel has been an exception 10 the
general tendency of commodities 10
advance. The Steel Corporation an
nounced that IL had not reduced prices
but independents have reduced their
quotations from 81 to SO a ton. Orders
received by the trust last week were
slightly better than those in the same
week OF the previous month.
A better demand has also been re-
ported for copper metal, which ad-
vanced TO l6 cents a pound.
Money has worked easier the ias,
week. Well-informed bankers believe
that sentiment relative TO the action
OF the Secretary of the Treasury in
offering to deposit money with West.
, ern and Southern bansers, was at the
bottom at the easing off in rates. Some
bankers expressed the opinion thai
banks. in expectation OF the govern
ment deposits. have been letting the
bars down little too much with some
tendency toward over expansion. Be.
| cause of this. they looked for some
reaction in rates.
! Bankers expect full rates for money
during the crop movement period The
drain by the West does not begin FOL
/ from four to six weeks. but the frs
shipment made to the wcs: for croI
movement purposes took place fas
uaal< Thu South has already hnop q