The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1915-08-14
Cancellation of Wheat Orders
is AuthOritatively Explained.
Italian Government Strikes at
ExtOrtiOn in Kingdom.
IMPORTERS FEAR INHIBITION
Kill Contracts Rather Than
Face Royal Scrutiny of Profits.
Buyers Turn From High Prices
i'm u. s. to Argentine.

Chicago. Aug. 14.-AuthOritative
explanation has been obtained for the
sensational action of exporters in sud
denly cancelling during the last 4S
hours contracts for large amounts of
wheat purchased in the United States
amounts roundly estimated at q
600, 600 bushels. The announcement of
the cancellations caused wheat prices
to break wildly here yesterday, the
downward plunge, at one time
amounting to as much as and a
cents a bushel, smashing the market
to $1.07 for the September delivery.
Wheat Intended for Italy.
Most of the contracts cancelled
were on wheat which had been intend
ed for Italy. The buyers, however,
according to one of the largest eX-
porters here, found all prospective
profits cut off by a plan of the Italian
government to fix maximum prices or
otherwise circumvent speculation.
A careful statement of the situation
resulting was made by the exporter
referred to. He did so after consult
ing with a prominent Italian here who
is in position to know the facts. The
statement in full is as follows:
1T has been said that the Italian
government had authorized repudia-
ton of enormous outstanding pur-
chaseS of Wheat. While there seems
no doubt cancellations were effected,
the occasion thereof should no doubt
be laid to a different cause.
Inhibition on Speculation.
I'm the first place, the Italian gov
eminent could not lawfully authorize
such a procedure and even if such
authority was vested in the authorities
at Rome to exercise it would be the
beginning. of the destruction of her
credit in the United States. What has
happened is very probably this:
There has been in the last few
weeks quite a large amount of wheat
bought by Italian firms or individuals
and to such parties the Italian gov
eminent may have issued order
prohibiting or regulating speculation
by the italian grain dealers, millerS
and consumers throughout the king
dom. On this account the Italian i'm
porter may have figured greater ad-
vantage in sacrificing his profit on
purchases from the United States than
in letting the contracts be shipped
showing good paper profits, but which
and more might be lost by efforts of
the italian government to give the
consumer as cheap wheat as possible.
Much of the wheat bought by Italy
last winter was resold to the consumer
at cost.
Turns to Argentine.
''Just now the government of Italy
is not likely to buy wheat in the
United States, not only because it
thinks our prices are too high, but on
account of high exchange: The ex--
change basis between the United
States and Italy is about % per cent
over normal. The basis between Ar
gentine and Italy is approximately
normal and some well informed Ital
ians predict there will be no buying of
wheat by their government until next
January or February, unless there is
sharp decline meanwhile in price
If there is no substantial decline
in North America before next winter
the Italian demand will then probably
fall on Argentina instead of the
United States, provided Argentina has
q crop"