Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-02-02

Drop in Wheat Trading Held
Due to That and Stock
Market.
By ]. c. ROYLE.

Special Dispatch TO The star.
| NEW YORK. February 1.-The Ca
madam wheat pool. which controls
tremendous proportion Of the wheat
production of the prairie provinces. Is
! shaking the big stick over the American
wheat market and the American farm
ers today. This is shown to a re-
markable extent in the decrease IN
dealings In the more prominent Ameri-
can wheat exchanges
Trade In wheat has been decreasing
since 1924 onward, until now the latest
monthly report issued by the Chicago
Boar Of Trade showed only 436.4S4. 000
bushels dealt in compared with 3d.
| TAO, 900 year ago. It has been years
since the volume of transaction In
wheat on the Chicago Board OF Trade
has been at such q low ebb. The re-
striction of speculative interest has been
brought about by several factors. but
| the influence of the Canadian wheat
pool is perhaps the greatest.
The Canadian wheat pool, with huge
quantities of wheat absolutely at its
disposal, is able to influence the mar
kets to tremendous degree to meet
its own needs. As result, the Amer
lean dealers and spectators have been
frightened out Of the market.
Go Into Stock Trading.
Another factor has been the enormous
gain in the volume of trading in stocks
and bonds. which attracted a large
| number of big operators who formerly
dealt almost exclusively in wheat. Sew
eral of the very largest grain traders
have practically deserted the western
markets for stock dealings. Funds have
an,.ol ;,,to Wall Cfrecf for Snocnl2tiCn
and investment which previously had
been used exclusively in the grain trade:
Another factor has been the fear OF
political interference with the market,
either through State regulation. or
through possible Federal influences in
the event that the McNary- Haugen Dill
should be enacted into law. Many gran
dealers maintain that the placing O!
this law on the statute books would
serve to kill the greater part OF specu-
lative trade in the grain markets.
The corn market is not affected oy
the trend of Canadian market manlpu-
lation. as is the case with wheat. rms
is shown conclusively in the TACT tnat
trading in corn has been on so mucn
broader a basis than dealings in wheat
Farmers in the corn belt ma tnem-
selves In a situation differing materiai.
~ from tElht Va yC0A "SS'
high priced hogs on their HANDS WITH
corn low in price. Hogs were FED ana
fattened for the market. while corn was
considered Of almost negligible value as
a cash crop.
Corn More Valuable.
Now with hogs down and corn selme
above 90 cents, corn Is considered more
valuable than hogs. As result, the
porkers have been marketed in large
Quantities with comparatively narrow
margins Of profit, and the growers are
counting on the sale OF their corn as
cash crop for their earnings at present.
The ratio Of corn to hogs. in value. 1t
Is held in the trade, should be TO 10.
Ninety-cent cornshould be fed to 50
hogs. but now the best hogs bring less
than SO. so it is considered profitable
to make their hogs and sell the corn.
Sooner or later the continuation OF such
a policy. would, as with every other
vicious circle proposition. lead to
shortage OF hogs.
It Is as a result OF something OF the
same sort that there Is now q shortage
Of beef cattle and beef cattle prices
have advanced TO extraordinarily high