Jasper County Democrat, Volume 2, Number 24, Rensselaer, Jasper County, 23 September 1899 — Business Situation. [ARTICLE]

Business Situation.

Chicago Correspondence: The changed condition of the money markets has been the principal topic of discussion in both commercial and financial circles this week. In New York rates for both call and time loans have been sharply marked op, and there naturally have been at least sympathetic advances in all of the large centers. There is doubtless a good deal that is purely artificial in the money situation at the moment, bnt at the same time some legitimate reasons exist for an advance in rates over the level prevailing a few weeks ago. The movement of the .crops snd the steady expansion of general business are both calling for a much larger use of money, and as is always the case, particularly at this season of the year, New York is being drawn upon to furnish a certain proportion of the necessary funds. The effect of the higher rates for money have been felt principally, and in fact almost entirely, in speculative circles. In the stock markets there has been a sharp decline in values, amounting in some cases to $6 and $7 a share, in consequence of the liquidation that has accompanied the calling of loans by the banks. Legitimate business interests have not as yet felt the influence of the advance In money rates to any appreciable extent. There hi no stringency, in the ordinary sense of the term, so far as they arc concerned, commercial borrowers having no difficulty in getting all the funds they need on time at rates which, all things considered, cannot be called at all burdensome. In the general business situation no really disappointing factors have come to light during the last week. All of the leading railroads report a shortage of cars with which to carry the enormous volume of freight pressing for transportation. Manufacturing plants are still far behind on their orders and prices are being maintained on their highest level. No weakening in selling values is anywhere discernible, and consumption continues on an extraordinarily large scale. The bulls in the wheat market had cause for dissatisfaction this week. With two important matters in their favor the prices were a trifle lower at the close of the market Saturday than at the end of the previous week. The Government crop report, issued Monday, was altogether in their favor, and the daily shipments of wheat and flour abroad were very liberal. A small crop, as less than 500,000,000 bushels is now regarded, and a heavy export business, were insufficient to sustain prices in face of large stocks in commercial channels and weekly additions to their amount. Argentina shipped to Europe this week over 1,000,000 bushels of wheat, compared with no shipments the corresponding week last year, and thus to that extent compensated for apprehended small contributions from Russia and the Danube, which, as regards the first, at least, is by no means assured, notwithstanding failure of the crops in important districts of that great empire. The bulls in wheat have been buoyed by the hope of greater outside speculation as a result of some evidence of waning interest in stock investments, but that has so far failed them. An abundant corn crop is now assured, and owing to the recent warm, dry weather will be ready for use and shipment much earlier than in ordinary seasons. That state of the weather has also dried up the pastures and caused an unusual consumption of corn, and as the climatic conditions in Europe have been of a similar character the demand for export has maintained its previous activity, so that there has been no reduction in prices, and the future is full of promise for good returns to the growers, as well in the matter of prices as of yield.