Rensselaer Semi-Weekly Republican, Volume 20, Number 107, Rensselaer, Jasper County, 29 September 1899 — BUSINESS SITUATION. [ARTICLE]

BUSINESS SITUATION.

Chicago Correspondence: Genera] business conditions continue to improve. Money has worked somewhat lower, but the market is still far from easy. The call rate has been held close to 6 per cent during the greater portions of the time in New York, and time money has been at about the same level. But up to the present time it is only the speculative element whose peace of mind hasbeeu disturbed by the flurry in money rates. Should money remain tight for any length of time legitimate business interests would undoubtedly be made to suffer to some extent, but the best financial opinion is that there is no danger of that. Whatever stringency exists now is thought to be due largely to demands for funds for crop-moving purposes, and also in a measure ito over-trading by some large stock exchange operators. Trading in grain was dull and sluggish the first half of the week, during which, time there seemed to be little to encourage buyers. The heavy increase of wheat in the visible supply that was announced Monday appeared at the time to approvethe course of those who had been speculating for a decline in the price of that commodity. The previous stock in commercial hands had- been considered oppressively heavy and the large addition, referred to, with a still further increaseexpected as the result of free receiptsthis week, was thought to be incompatible with a rise in price. Reasoning from such promises proved deceptive, as it took no account of the possible accidents that might arise from the too greaf eagernessof sellers to press that condition to their immediate advantage, while holders of wheat had not yet’ become convinced of its permanency; , Short selling of wheat which does not dislodge the holdings of previous purchasers never proves effective in permanently disturbing values, because of the absolute necessity the short seller is under of becoming sooner or latey a purchaser. This theory was proved correct when a prominent Chicago firm that had been conspicuous as a short seller undertook to buy back what it had sold. It found few willing to part with wheat as low as it had done. The failure of that firm in consequence and forced purchases in the market for its account was the principal incident of the week, causing an advance that closed wheat at an appreciation of 2 cents a bushel compared with its value a week before.