Evening star., 1916-08-13
BAD CROP REPORT
HURTS THE MARKET
Fear Expressed That Still
Further Damage Will Be
Done in August.
BANKERS DO NOT EXPECT
MONEY TO TIGHTEN SOON
American Financiers Looking To-
ward Russia as a Profitable
Field of Investment.

NEW 1Oftk, August 12.-Ine most
important domestic influence upon the
speculative markets this week was the
| monthly agricultural statement of the
United States government. AS rule,
August is the favored month for the
crop killers" And it sometimes hap
pens that their pernicious activity is
responsible for an entirely erroneous
estimate of crop conditions by the
country whole.
This year. however, the black rust
damage has been considerably heavier
| than usual, and the evidence of its wide
extent has been corroborated by re-
liable testimony of banking and busi-
ness leaders from many states. The
governments report goes even farther
than the most disappointing private
estimate of production in the more i'm
portant grain crops, and indicated
total wheat harvest of only 654.000.OO0
900 last year. In other words, the 1916
| wheat harvest promises to be only 65
per cent of last years production.
Corn also suffered substantially dur do
ing July, showing a drop of 90,000.000
compared with last months forecast;
but at 2.777,0 100000 bushels the corn
crop will be larger than that of 1914
| or 1913. though smaller than that of
| 1915 or 1912. AS August is proverbially
a hard month on the crops. it is hardly
possible that much improvement will
be shown in next months report. and
that the total production may even be
subjected to further shrinkage.
Public Out of Market.
| The public is out of the stock market.
This is perhaps the safest and most
| satisfactory explanation for the dull
ness that prevails on the big board,
| and, in fact, in the little boards as
| well. The public investor is most prob
ably improving his time in cultivating
| a period of watchful waiting. being
still unable to gauge the exact effect
| of important influences upon the stock
| list Thus it Is that the high grade
dividend shares refuse to go down be-
cause no one will sell. and by the same
token they cannot go up because no one
cares to buy.
A mild shock has been administered
| to the boosters of the automobile stocks
| by the recent reduction in the price OF
| a we'll known low-priced car, and as
result the shares of companies recent
ly amalgamated or promoted to enter
| this field have been held at much
| lower estimate of value.
The renewal OF the crisis in the steam
| railroad situation has been an 1mpor-
tant deterrent factor in the general
financial and business situation. The
disposition of the financial district ap-
pears to favor the expectation that the
| net results will be a compromise, which
means that the employees are to receive
| a substantial part, If not the entire
amount, of their demands.
Tight Money Not. Likely.
There is no immediate prospect Of a
tightening of money rates in this mar
ket So long as the surplus reserve OF
| the New York clearing house members
remains over one hundred million dol
| lars above the legal requirement. and
| so long as gold continues to pour in
from British and Canadian ports, there
seems little possibility of a general
marking up of loaning rates.
| American fnanciers have had their
attention drawn to Russia by the re-
ment Of that country for the purchase
Of supplies in the United States. The
vast empire which stretches from the
Baltic on the west to the Pacific on
| the east and comprises over seven mil
| lion square miles of area, has bound
| less resources which have never been
developed Russia is a self-contained
| country and produces all that Is re-
iation of more than 17o.0o0.o0o in
| habitants
Russia Needs No Settlers.
Half century ago this country had
| territory without population, and so
| was forced to wait for time and i'm
migration to give 1t the Inhabitants
which were needed to build up its
| industries Russia has no need to wait
| for settlers from abroad, because it al
! ready has a population which Is well
nigh double that Of the United States.
| What Russia does need. however, IL
| capital, and the coming OF this indis-
pensable agent Of prosperity is urgent
| ly sought.
| American financiers have in Russia
| one of the most inviting fields in the
world for profitable investment in
manufacturing plants. mines and oil
fields When these opportunities are
| made use of there will be no remnant
! of idle capital in this country which.
| between Russia and South America, will
| find its capacity for embracing foreign
| opportunities moro than exceeded by
| invitations which will be extended
simultaneously from Europe. Asia and
South America