The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-27
FINANCIAL NEWS
AND COMMENT
Another Violent Rise In Wheat
the Principal Feature
Of Interest.
HIGHER PRICES PREDICTED
Slight Improvement Reported
in the Monetary Situation
in London.
HIGHER PRICES PREDICTED

Another violent rise In wheat was the
principal feature OF interest yesterday.
The price WAS at one time to cents
h Cher IN Chicago. where speculative
operations now centre. while here tho adj
vance. II less extreme. was also notable.
The great strength in wheat seemed
to be- due to speculation on tho enormous
possibilities In the unprecedented condl-
lions created by the European war and not
TO any actual change in the existing de-
mdnd from abroad. In fact the outgoing
movement Of grain yesterday was reported
to have sl.ckencd. some exporters de-
,laring that the developments In the thea
ire Of war nave so fIr are they are con-
cerncd, acted as Restraining influence on
shipments to all ports, even including
those Of the United Kingdom.
Publication OF Broomhalrs review, a
leading foreign authority on the trade.
In which the International wheat problem
was discussed extensively, may have given
IN Impetus to speculation This publica-
tlon speaks of tho Inevitable waste OF
war and the loss OF crops In European
countries through inadequate harvest nE.
II also ventures the prediction that should
the war last for year the whole of Bu-
rope will be suffering from famine next
summer and present prices for wheat may
then appear moderate and even low.
Outside OF the grain markets attention
centred chiefly upon evidences OF slight
but unexpectedly early improvement in
the monetary situation In London The
congasted condition Of tho great credit
market at that centre Us of course tho
fundamental reason for all the problems
that have arisen here. and any definite
relief in this respect will be of the utmost
Significance.
Although no confirmation was obtain
able. Il was reported that finance bills
have made their appearance In small
amounts and that conditions abroad have
80 improved that English discount houses
are quoting rates for bills to arrive
which Is another way OF saying that local
bankers are able 10 issue long bills. II
Il possible that such transactions II they
really occurred were put through as the
result OF individual arrangements. On
the other hand there Is the possibility
that the credit situation abroad really
has improved 10 the extent where such
business may be resumed in limited
way. II the latter supposltion turns out
to be the correct one the most important
progress has been made toward building
up the International credit system
The extraordinary measures proposed
for financing tho seasons cotton crop
were again widely discussed In the
financial district without any substantial
uuanimity of opinion being arrived II.
II, as Is suggested, the Government Is to
accept warehouse receipts covering the
deposit of cotton as collateral for tho
issue OF emergency currency, thus hold
ing back cotton from the market, tho
question naturally obtrudes itself what
he attitude OF the spinner Is TO be. the
position of the producer evidently is
based on the hope that II 100000 or
5000. 900 bales OF this seasons crop are
carried through until next yea: every
Thing will work out all right. The spin
ner generally speaking. probably believes
that the natural law OF supply and de-
mand ought to be allowed TO fix the
price. even II afterward methods OF car
rying the crop along the lines now sus
gested are made. The spinner already has
considerable cottoh on his hands bought
az much higher prices than those pre-
vdiling at the close OF the exchange
Under these circumstances, the mainte.
nance of the price OF cotton at an ar
bitrary figure Is scarcely likely to stimu-
late consumption. 10 say the least
The iron trade journals this week re-
fleet rather marked diversity OF opinion
on the subject of foreign Inquiries. The
Iron Trade Revie,0 lays emphasis on the
continued heavy inquiry in this country
scented by tht Sc negotiations being heavy.
The Iron Age Is inclined to think that
there is a tendency TO exaggerate the
amount and significance OF these in
qures.