New-York tribune., 1918-05-09
WALL STREET OFFICE:
Mills Building, Is Broad St.

respects to the head of one of the
largest financial institutions in New
York. During the course of the con-
versation he was asked how things
were progressing in the great grain
belt Of the Middle West. "Well,"
said the Westerner, "if crops pan
out as we hope and expect they will
we can come East in the fall and buy
New York" He was told that New
York probably was for sale at a
price. The report issued by the De-
rartment of Agriculture yesterday
indicates clearly that the West will
have the price: If it were not for
the fact that under the guise of a
guaranteed minimum a maximum
price has been fixed for wheat, the
Middle West could buy anything it
fancied, for the price Of wheat would
now be at perhaps S5 a bushel; and
production is almost certainly going
to be greater than in any year with
the exception Of the record years
1914 and 1915. With good luck it
may easily surpass the 1914 yield of
S91, 100000 bushels. The condition
of the winter wheat plant on May /
is estimated at 1854 per cent of a
normal-much better than the aver
age condition on that date, while the
abandonment through winter kill,
though large, is still very consider
ably less than might have been ex-
pected in view Of the bad condition
in which the crop entered the winter.
The acreage harvested may easily
exceed that Of any preceding year
save 1915; and if the weather should
be unusually favorable from now un-
til harvest time there is a fair chance
for a crop of more than 600,00O,000
bushels, instead of the 572,0OO,O00
forecast yesterday. Meanwhile, the
acreage sown to spring wheat is so
large that, granted fair conditions,
large increase in yield comapred with
last year is assured.
A striking contrast between the
movements of railroad shares and
ether issues was the outstanding
of CD NJ
day. While the industrial list was
unsettled and tending lower-a nat
ural reaction from the rapid recovery
on Monday and Tuesday-the rails
became extremely active and ad-
vanced sharply in some cases to new
high levels for the year. While this
movement was probably due in part
notably in Reading-to operations
of large speculative groups endeav-
oring to attract a following, much of
the buying appeared to be of a more
spontaneous character, the product
of reports from Washington that
freight and passenger rates are to
be increased. While such action by
the Federal authorities would not be
of immediate benefit to railroad
shareholders, inasmuch as the COM
pensation they are to receive for the
use of their properties is fixed with
out consideration of current earn
ings, it would nevertheless tend to
restore confidence in the future of
road securities. Many holders of
railroad stocks have feared that the
government would permit expenses
to rise during the war period, meet
ing the deficits out of funds derived
from outside sources, instead of MAX
ing the transportation system self
sustaining. In that event the roads
would be returned to their owners
if they are returned-saddled with
high wage and other costs without
additional compensation to offset the
additional burden.
The market for bank acceptances
is steadily broadening. Banking in
stitutions in New York and in the
interior are finding this form of in
vestment attractive and an active
demand is reported, especially in the
bills that are eligible for discount at
the Federal Reserve Banks. "Bank
acceptances eligible for discount" f"
said banker yesterday, "are really
more liquid than call loans as bank
investment and bankers are coming
to realize this. Moreover, rates are
much more stable, which is, Of course,
a great advantage" A Wall Street
house which has been an important
factor in developing the acceptance
market to its present position is ad-
vising interior banks which carry
credit balances with correspondents
in the larger cities to utilize a part
Of such funds in the purchase of eli
gible acceptances instead of carrying
them entirely on deposit. Prime eli
gible bank acceptances are in effect
6o ~, ,o01> &c