San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
GRAIN PRICES
NEAR THE TOP
AS YEAR ENDS
Bull Movement, Begun Early
in Year, Boosts Mar
ket to High Level.
EUROPE A BIG FACTOR
Whether Foreign Nations
Will Pay Inflated Prices
Remains to Be Seen.
EUROPE A BIG FACTOR
BY GEORGE SCHNACKEL.

I
ginning OF the year a bull swing start
ed, contrary to all market traditions.
and as il draws TO a close Prices a.c
found rear the top of the new crop
season in the face of trade facts AMI
history.
The bulls have been successful lately
in ignoring all normal factions b.
cause all kinds of class legislation de-
signed TO aid the farmers have been in
troduced in Congress, out of which II
is held reasonable to expect that some
helpful law will be evolved. Among
the more important measures to this
end before Congress is the bill t. ap-
propriatc S250000,000 for the purpose
Of financing export PURCHASES by for
eign countries. This bill may or may
not pass. but it is predetermined wheth-
or the foreign buyer will accept the
credit if it. meals that he will have to
pay a premium in the way of Inflated
prices for his grain.
Situation Hinges Upon Europe.
The sit laiivn hinges on this fact. Eu-
rope has been trying to solve the puz-
| Zle of get:nG Ter monies baCi: TO a nor
NAL rate of exchange. Fruitless con-
fercnces looking toward this end were
hell at the Hague, Genoa and at Lon
uOn twice. To the innocent bystander
all of these gatherings appeared TO be
| tOredOOmel to failure because the
| United States, the creditor nation, took
no part. From recent developments it
| looks as il the United States would be
drawn into the discussions before a
way out Ct the difficulty Is found. Es-
| adjustment of Germany on q SOunder
| financial basis will solve many of tie
economic problems of the United States
as we'll as of the nations of Europe.
| Statist!cians issue figures time alter
| time regarding the world supply Of
| grain and its requirements but none Cf
! them has been far-sighted enough t.
take into consideration the reduced con-
sumption abroad as result of the
| strained finances of the European ma
tiunS. When the fore gner has no re-
sources lie cuFtails his buying power
even to cconomizing on food. Congress
ma! pass legislation to stimulate this
| foreign demand but liz success can
nc hoped for when prices are put above
| these asked by Canada GrI Argentina,
| our chief competitors.
In the month of December we find
| concentrated holdings in wheat, corn
| and oats and inflated prices as a result.
| Highest prices of the crop season were
|
results Of the operations of the same
! interests which defeated the May bulls
in wheat. Encouraged by tie govern
ment they have enhanced values above
a worlds parity.
May Wheat Deal Big Feature.
The May wheat deal was the big fCa.
! ture of the year. A cOterie of local
traders Loaded by Arthur Cutten were
the longs and cash interests headed by
the Armour Grain Company. were tie
shorts. The price at the start of tie
month was S1.49 rs while on the last
day of Nay $1.16 was the low point
and the close was near that figure.
There were nearly 14OO0,C00 bushels
of wheat delivered TO the longs and al
though they were able to finance the
grain they experienced difficulty IN
burying the corpse. Stocks of wheat
at the start of the month were not .,
large but the Southwest was loaded
up with wheat which they we're unable
| to sell TO the export trade and these
stocks played an important part in iie-
feating the purposes of the bulls. Not
only did Kansas City. st. Louis, st.
Joe and Omaha furnish wheat for the
shorts bat Duluth and Mimic apolis dis
posed of surplus wheat and there was
cash wheat brought back from Toledo
and Buffalo.
After the collapse Of the May deal
the market went through its usual
course OF curves, trade, however, being
of reduced volume. During September
the word was electrified b. the comc.
back of the Turk in Asia and his mill
tant attitude after routing the Greek
troops caused broadening in SDocu,a-
tive activity on the theory that there
| would be another European war, with
Turkey the storm center.
A Gloomy Opening.
The year opened rather gIOOmily. On
the last business day of 1871 the fail.
ure of one of the biggest commission
houses IN the trade was announced, a
house with the best of reputation. l lis
was followed by the announcement of
big Chicago bank being absorbed ny an.
other institution because # financial
difficulties Of the first. French banks
also We're reported experiencing diff
Guilty because of frozen credits. All this
made the grain Spectator feel that
grain w@S worth next 10 nothing. How
ever, after the gloom had been dissi-
pated and some Of the reports denied
regarding financial troubles abroad, a
bull move developed which eliminated
in the collapse of the May delivery.
Congress had appropriated $20O0GO00
LOT lHe purchase Of seed wheat Tor hCS-
STA and this tended to inspire bullislr
hopes. Other factors were the buli;sh
winter wheat crop reports and also
the estimates of the exhaustion Of the
surplus of old wheat and small farm
| reserves.
Producers Are Discontinued.
| Despite favorable yields and higher
| prices for his product, the producer has
| shown GihCOntentedness the entire year
| The final report Of the year showed
that values Of farm products were 81
per cent greater than a year ago on
| December l. The year was one of ex-
cessiye heat and drought at times bat
| in spite Of this the production of the
! principal grain crops was generally in
excess Of last year. There were u.s.
100000 bushels less corn produced thar
in 1921 and 100000 bushels less of
winter wheat The spring wheat CrOp
was 5GOO0,OO0 bushels better this year,
! oats 127 100000 bushels more, rye oh
OO0.0OO bushels more and barley 81
100000 bushels more. Dry weather
cut down the area Of the Lewly-seeded
lyinter wheat crop but beneficial rams