Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-02-06
BY the Associoted Press

The headlong plunge OF COM
modify prices showed signs OF
touching at least a temporary
bottom today.
Wheat futures on the Chicago
Board of Trade, again reached the
maximum allowable decline OF 10
cents a bushel, but then staged a
rally, recovering part of the losses.
Corn skidded the daily limit OF 8
cents for the third straight day,
and recovered slightly. Corn still
was the weakest grain. Oats ranged
ahead of the previous close on the
rally.
Some balance came back into the
New York Stock Exchange, where
prices held just about even.
Cotton futures, after dropping
heavily, recovered to show narrow
gains at noon on the New York
Exchange.
The erratic movements of COM
modities other than grains lent
encouragement to analysts who see
this weeks break in the price front
as a healthy adjustment rather than
a different change in direction.
Butter Prices Firmer.
Vegetable oils were among items
showing further declines on the
wholesale markets. But butter
prices frmed somewhat at New
York, and tallow and grease also
were slightly higher.
In Chicago, activity in the cash
corn market was stymied because OF
the Scent drop in corn futures.
Corn futures were offered off the
limit with no buyers present at
1890 am.
Grain dealers explained that large
elevators did not want to buy cash
corn unless they could also sell fu-
lures at the same time-an opera
ton known as hedging. Such hedg-
ing protects the elevator house in
case there is a further drop in
prices.
About 100 railroad cars Of corn
arrived here today. Some of this
grain had already been bought and
was simply halted on those previous
purchases. But there was some
grain arriving, not already bought,
which was offered in the spot cash
market.
Would Sell at Lower Prices.
Dealers said that unless the ele-I
vators were able to hedge by selling
futures, the cash corn probably
would sell at lower prices than that
which could be hedged. Yesterday
unhedged cash corn sold at 5 cents
a bushel lower than that which was
hedged, they said.
Whether the housewife eventually
would pay less for loaf OF bread or
a cotton dress depended on one
prime factor: Whether the break in
prices Is a fash in the pan or a
decisive turn in the imitation ROAD.
The answer may come in the next
few days.
Underlying factors affecting prices
have not changed in two days, many
comments emphasized. While the
experts have called for an early re
adjustment of prices''-perhaps in
q mood of wishful thinking-there
are still to be considered such FAC
tors as: A huge money supply and
a record high national income, the
rising level of wages, high taxes,
high industrial production, govern
ment monetary policies, the foreign
aid program.
Truman Warns of Crash.
The price picture included these
other developments:
President Truman warned that a
crash is inevitable unless ways can
be found to stem prices, which ne
said had risen alarmingly
A. w. zelomek of the 1nterna-
tional Statistical Bureau in New
York said the price tumble may
mark the turning point of imitation.
If the decline becomes pronounced,
he added, jittery spectators might
release a hoard of vitality needed
goods.
The grain price slump, said Ray
Templeton of Thomson & Mckln-
non. Chicago grain commission flrm,
possibly reflects increasing doubts
and apprehension that this might
be the signal that the oft-predlcteo
Gao pPTCES page A-4)