New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-08-14
Price Drops to Sl.O7 When
orders for 100000
Bushels Fail.
ARGENTINE CROP
PREFERRED TO u. S.
Heavy Exchange Discount and
uioh Figures Against Amer
lean Exporters.

CHICAGO. Aug. 13.-Authoritative ex-
-,..o,;on was obtained tonight fox the
.a..tional action Of exporters in sud
~ esncclling during the last forty
~. ~, hours contracts Cor large
.,r,,s Of wheat purchased in the
Ta,sd States, roundly estimated at
r,;,lion bushels. The announce
=. n the cancellation caused wheat
-;.o. 20 break wildly here today, the
Inward plunge at one time amounting
~. much as 4 TO as cents a bushel'
.~.sbirC the market to Sl.of for the
S,,,ember delivery.
Most Of the contracts cancelled were
n.,sat that had been intended for
,..,r The buyers, however, according
- one Of the largest exporters here
I'D all prospective profits cut off by
,,s, Of the Italian government to fix
MAXIMUM prices or otherwise circum-
cen. sneeulation. A careful statement
~ the situation resulting was made
his evening by an exporter. He did
"a after consulting with a prominent
r..ran here who is in position to
l,or tho facts. The statement fol-
lows:
~ had been said that the Italian
government had authorized reputation
=; operous outstanding purchases OF
wheat. While there seems no doubt
cancellations we're effected, the occa-
.;or thereof should no doubt be laid TO
& different cause.
In the first place, the Italian govern
men. could not lawfully authorize SUCH
, procedure, and even with such au-
,bor;.v it would mean the destruction
ot her credit in the United States.
sWhat has happened is very prob
sbly this: There has been in the last
few weeks a large amount Of wheat
bought by Italian firms or private md
viduals. avd TO such parties the Italian
government may have issued an order
prohibiting or regulating speculation oy
The Italian grain dealers with millefs
ana consumers throughout the KING
ior, On this account the Italian I'M
norter NAV have figured greater ad-
vantage in sacrificing his profit on pur-
ebases from the United states man IN
let,in, the contracts be shipped, snow
i-g GOOD paper profits, but when ana
more might be lost by efforts OF the
Italian government TO give the con-
sinner as cheap wheat az possible. Mucn
q Inc wheat bought by Italy last WIN
ter was resold TO the consumer at cost.
"Just now. the government OF Italy
is not likely TO buy wheat in he united
states. not only because they think
our rrices are too high, but on account
o. the high exchange. The exchange
basis between the United States and
I.slv is about - per cent over normal J..
The basis between Argentina and Italy
is approximately normal and some well
informed Italians predict there VIII be
no buv.ng of wheat by their govern
mert until next January or February
unless there is a sharp decline mean
while in price. II there is no substan-
tisl decline in North America before
next winter the Italian demand Will
then probably fall on Argentina IN
stead Of the United States, provided
Argentina has CROP
The cancellations were reflected on
the Board Of Trade at the opening to-
Lsy in prices Use to 3'sc under yes
terday's close.
September wheat, the option most
affected. closed yesterday at S1.1l1s.
!. sold in different parts Of the pit at
the opening to-day at $11O to Sl'OIl2.
Immediately thereafter there was a
sale at S10S. December contracts
showed a maximum opening decline OF
sac al S1.06.