The sun., 1918-09-07
GRAIN SPECULATION
Is NOT EXCESSIVE
Traders Interested in Warning
Of Chairman Of Money
Committee.
OPERATIONS ARE LIMITED
Exchange Rules Restrict Deal
ers-Alarming Crop
News Taboo.
OPERATIONS ARE LIMITED

fhe grain trade evinced considerable
interest In the remarks Of Benjamin
Strong. chairman of tho money commit
tee. as given in the letter to H. G. s.
Noble. president Of tho Stock Exchange
Incidentally. when the stock market
broke sharply there was a sympathetic
response in the grain list. 1t has been
evident for some time, however, that
there have been no undue speculative
operations in the grain market, and the
money requirements for the conduct Of
the trade have been at a lower ebb
than for q number of years. There are
many large Wall Street concerns that
are members Of grain exchanges as well
as of stock and cotton exchanges, and
naturally the request of the money COM
mittee officials that there be no expan-
sion OF loans over the present basis af-
fects the various markets.
As far as grain is concerned. the lead
ing exchanges have promulgated rules
which limit operations in futures so that
no individual can have an open trade at
the end of any session exceeding 200.-
900 bushels. There are also rules which
guard against interests which might be
ahiliated with tho actual handling OF
grain in specializing with hedges. TAX
ing on or removing Of hedges several
til les. without any real transactions in
actual grain Is looked upon with dis
favor and as not in accord with the
wishes of the Food Administration. As
result of these limitations there Is
only a miscellaneous commission house
business in the grain markets at this
time. with apparently Just enough busi-
ness doing to permit Of fairly satisfac-
tory hedging operations for the buyers
and sellers.
Not long ago there were instituted on
the Chicago Board of Trade dealings In
rye futures for the purpose of esta blish-
ing a hedging market. and dealings have
been successfully made the last month
or SO. A move is also on foot to insti-
tute trading in barley futures, so that
the handlers will have a hedging market
The extent of the outside trade in these
grains however, Is not expected to be
sufficiently large to conflict with the re-
quest Of the money committee to avoid
overexpansion of loans. As an instance
trade in grain futures and outside spec
ulation 1t has been pointed out that
during the last month. when the corn
crop lost approximately 300.000.000
bushels, there was at no time run
away market due to any vicious specula-
ton, and while prices did advance mod
erately. there was no evidence OF in
fringement Of the rules.
Managers Of commission houses have
been instructed to refrain from dis
semlnating alarming crop advices or
other news which might tend to infiame
public sentiment, and the restrictive
measures OF this kind also contribute
to the relatively small volume Of busi-
ness doing and operate systematically
toward holding down loans made to
grain interests.
CHICAGO, Sept. Corn developed
noticeable strength to-day, Influenced
more or less by scarcity OF contract sup
plies in store here. The market closed
Arm. sc. to 1Ac. net higher. with Octo-
Der sl.5sls to s1.5sA and November
s156% to $1.56h. Oats gained a shade
to hc. In provisions there was a loss
of 25c. to 81.
Reports showing that the stock of corn
in Chicago elevators contained only
$4,000 bushels of contract grade put
the bears at a disadvantage from the
outset. In addition country assignment
notices remained light and receipts here
were small Frosts last night In lower
Michigan and western Nebraska tended
also to stimulate demand. as heavy rains
of late and the unseasonably cool
weather were said to have hindered the
new crop from maturing and to have in
creased the likelihood Of damage. East
ern millers and commission houses with
Southwestern and Omaha connections
were conspicuous buyers. A reaction
which took place during the last hour
was due to realizing.
Oats were upheld by the strength of
corn. Most OF the trade was local.
NEUTRALITY-SUSPICIOUS. Of wheat from Ar
ssnuna last week were 1850 bushels,
. falling of over 700. 900 from the previous
week, and il is the general Impression that
tonnage 10 being diverted from the Ar
gentins to America
CORS-The corn market showed a firm
undertone early in the day and prices ad-
vanced : to ne. In the local cash mar
ket fresh shelied No. yellow was quoted
York.
OATS-There was only a quiet trade In
the oats market. and while prices followed
corn to some extent fluctuations were mar
r row and ,nsi Quotations ssrs net un.
liberal ana the market apparently again
felt the influence of hedging operations
az the .s.snss Of , sapSrs demand Re-
continue to run ahead of last year and
stocks are assuming quite large proper
and uncha nged: standard quoted at slS c.;
No. 9 white, size: No. o white, Sic: No.
white, soKo.; fancy clipped white nomi-
nal: ordinary clipped white. Sl9s2c.. all
elevator.
RYE - Market quiet: No. Western.
ina c. T. New York.
BARIEY--Market steady: feeding. sl.ls.
mailing. sl.22 c. {. New York.
IAY-Markst firm: No. ]. ti.s5Ql.T0:
No 2, $500 100: No. 3, $40.
Wheat. including four. exports for the
week. according to Brddstreefs, aggregates
:,737.075. against 3.546.352 the previous
week, and 3.02s?57 last year: since July
]. ?5,lH.i6s Cincluding an addition of 81
season. Corn exports for the week. 2ss. 544.
against 100, 0sl tho previous week and 1885,
h64 last year: since July ], 6,392. $40 din
Guiding an addition OF 1900. 0O0), against
G,3ii,7O7 last season.
CHICAGO PRICES
RYE oren. High. Low Close day
October ..,....... l70il ms 10 10 1914
CORN
September...... ! 1874. 156A isss. Ih5x
October ..,,....,.. l5s.s lSs l57h Ijsn 1917
Novemoer''.'.'" i'sE 1855 loo i56x 1854,
Scpt"mbcr,....,. T6. ~ ;OIE TOg. io4
Or ober, .,........ 72S 20 Syl, 7oL 7en
November.....,.. "a. 7ls. "a Is "a
LARD
september....... 1876 1886 83 cC.6 q 90
October .'''''''., 2s.7o 26.7o $3.50 $3.50 %. s.
septembsr ess5 2sS $40 $50 a.o
oc.15er. '.'''''''' H'3o 2''0 2s.V 1871 eF