Press enter after choosing selection

Special Market Letter

Special Market Letter image
Parent Issue
Public Domain
OCR Text

The lollowiii" market letter is Inriiii.tiüil us by McLain Hitos. & Co., Uiuuiiihaion Merchante, Úiulto liiiilil;.'u. Cliicuijo: The features o!' tlie wct'k in Snanclal e'roies huye beou Ibe siiarp udvunce in :i ' T 1. ; ji luimest i alus at New York, nml Ui tWerisli tute of the stock marfcet. ivhicli quiekly responded to llie iiioiiui.irv sitnation. The ban ks al that ixiini m'iiii hiclined to pi'otect tkeir reerven, ai di are ruptaly approachiiig lie lejíal limit, and theirlasl statement p.iios i disposiu mi to decrease loans. l'lir ch'HriiiKs for tliíí week show aniilicr Uirge incieasu over tliose of the iHL'vinus week, ;is well as ovt'i the cor lespoiuliiijí weck last year, ilespite tile iitifavonible state 01 itAairsat the 80111I1 .1 uonseqtieitce oí tlin Inciense in llie vhIIow rever ulantis. The nioveraent m (íold iiiüi] Kinope and Australia, ".vhli'h has already hejpin, will, by inm-iusing tiie volumu of legal reserve imi.l.s. tbiHl to check the rendericy to ii!ier Interest rales, and if it becouies lar. e eiioilffll will cuable llie eastern banlcs to jnindle an incréaseil stock business without leüucing reserves below lüe leiral limii a;id enable holders of Becnrities to successfnlly resist beai onslaughtN iinder tlie baltle cry of tighi. monev. The cn iionmcnis of (lie whoat mar l;et re raam imchanged in any of theii material leal urea, altliongh ihev have asyet caUsed 110 Riet spceidative activity, operatois on both siden of the inarket being content to avvait developinents. Bears huve become ralber more iiffgreMive. íiiooiiraged by thc l'requent reactiona Irom lite lemporun exhibitions ot' s reilgtll, and (lie U-ad' Iiir bulls. appjni'jitly conlldentof theii posiüon, luid of the iiJtimato succoss of ibeir campaign, are i ir! 1 iteren t lo thc ■om -se of ihe inarket. We have fioqiicntly sngKested that iht' bey tu ihe situation ia the exportable surplus held by Itussiu. nul Uiai iipon lier weekly clearutiw-s wil] depend lie urgency or apathy of the Eui-opean rlemand vhk; llieir booie-growii cropii ure avallable; ihere is nothing ihat wc liscern to diange this stao of affaire and mili! exporta Irom thut country be'm to docreaae buyers tor an advuncc uill be compeüed tó opérate witli cauiion, und purchuse only on shavp rcacions. if ih(!y wouid ivi)iil the iiccess tv lor protenting tbeir Irados with liberal aaigina. Jiussian advlcös ïeiterale the stateneut. tliat tliey have but liltle to spare, uul ihüt ere loiifr their govcrninenl will piohib i exporta. The recent lib■ïal movrment trom iis ports is uot Incompatible with the short erop claims, nul may be cuilBfi] hy the knowledge j& the iiitimlcd piolilbition by trieichants at seipnrta wlio art anxious tó learthoir graiti beforejlhe uiovemeut s stopped. In relatinn lo the l'oreifrn situation it nay well to rempmber that stocks in he United Kingdcini iiio smaller than iiey have been lor niany ycais. and Imt Brjelish buyers have as yet mailt iistifiicient provisión tor future requlrenenls, the recent heavy purchases hav lij,' been chietly for Continental ac:ount. The chief 'reliance of the bears foi Ihe moment is tiie heavy northwest movpment, wliicb for the magnitude of the erop and Uit; paucity of old reserve is excessive. The heavy receipts are cluefly rtue to unusim] trade conditions uhii-h deprive the large elevator companies of their custouutry carrynif charges, spot whent ootamanding i premium over Ueferrert lutures instead ofsellinga discount that lias heretofore affoided h proftt for sioring at hiteiioi' pointe. Whiie ihe, northwest movemeut Ls Uirge, it is in a great [aeasure eouiUeracteU by decreased winter wheat receipts, and a rapid inerease in the visible supply prevented. Flie weather promises to ágain beeouie i niarkel factnr, th.ere being eonsider:iblf coiuplaint of a lack of suffleient tiioisluve to pornilt the Bpwing of the ntended winter wheat acrenge. The world's erop and reserve condiioiis ura apparenuy so nearthe danger line . hat while piice may be depressed tlirougli various causes, the tioeidents vhich at (ne time w anotber are aluost oi-i t.iïii tq in sonie measure nnavoiubly atteui erop pi'oapeota, will al) hj raetora hwvSntt more tlian tbeir isuül Bljfnlüoanoe. The yellow fever :s having n depiesiug inllnence of iome magnitude by inteirupting the trade willi the soutli and curtailiwj; the opera! ons of millers wliose trade lies in that sectiou, Consuoiption tliere, lioweyev. is continuing, and .111 urgent (Iemand may be anticipated as soon is cokl ends the scourge, The oorn market lias failed to maintain ils [losiLiou in consequence of an overábundant present supply, despite the general belief in a material curtailment of the yield of this season's erop. Lhe eilief elementa of weakness have been the iiuihility of holders of corn in iaster-n markets to dispose of their jiainupon which storage charges are iccumulating, and the promise of larger receipte l'rom the west where dealers are disposed to accept bids for prompt shipment. The fact that they are willing to sell while the deferred futuros are at remunerativo premiums is a pretty sure indication ot a lack of storage room for current reeeipta lrom farmers. The decline in price is a to many who coufldepjly Uelieved that the condition of the new erop warranted higher prices; their position became untenable through the abundance from former crops, and vvliüe they raay later have substantial evidence of the correctness of their theory, before it can be satistactorily demonstrated accumulated nipplies must be in better demand. .The visible supply of grain in the Uniten States and Canada shows the tollowmg ohanges fov the past week: heat increusetl 3,403,000 bu, corn inereased J ,800, 000 bu and oats increased 97,000 bu.


Old News
Ann Arbor Register