Department of Commerce [pp. 450-460]

COMMERCE.
6,000 more than the last. Altogether, the estimate of this year's crops
varies from fifty to seventy-five per cent. of those of last year. The Commis sioner of Agriculture at Washington, calculates, after careful investigation,
Kentucky at 24 per cent. less, and Missouri and other Missouri varieties
North of the Ohio, at 10 per cent. more than those of last year. The Com missioner, however, does not profess to give perfectly reliable data, as, with
all his facilities, his estimates are more or less conjectural. As showing the
opinio of dealers and others on this point, we quote from the last monthly
circular of Charles B. Fallenstein & Son, of this city. It says: "Late Mis souri files express a hope of from one-third to one-half of last year's crop of fine
quality. Kentucky accounts are unpromising. From Ohio the accounts are
most unfavorable, and the production is estimated at not more than 10,000
hhds., against 25,000 last year. Tennessee promises no more than half of
last year's crop, and only one-third of this, the early planting, of really good
substance, but of indifferent length. Maryland, if not prevented by frost,
will yield a two-thirds crop. In Indiana not more than half a crop is ex pected." To sum up the entire crop situation, the circular says; "We
cannot, with safety, calculate on more than half a crop throughout the
West, and of this no more than one-third of really desirable quality, and
this the early planting."
3.-THE GRAIN CROPS AND FOOD PRICES.
TaE Wheat crop in England having turned out not only deficient in
quantity, but of inferior quality, an active export demand may be expected
for our leading food staples, if prices can be made satisfactory; but this desirable condition is likely to be defeated by the speculative cliques and combinations in the Eastern Ports, who are only awaiting the closing of the canals to commence their manipulations. Wielding immense resources, there
is not so much difficulty in obtaining the control of the market as our readers would suppose. The probable receipts can be estimated with the greatest exactitude, as these must be regulated by the capacity of the railroads,
and the object of the speculator is, by inflating prices, gradually to get the
market largely oversold on time contracts, and then, in the parlance of the
Exchange, produce a "corner." The course of prices rarely depends on the
actual amount of food in the country, be that amount ever so much in excess
of probable wants; but is really governed by the clique movements of a few
strong operators, who take large risks in view of the enormous profits resulting from a successful "twist." On this subject, the New York Shipping
List remarks:
The best evidence of the truth of the statements that have been made from
time to time concerning this leading cause of the unnaturally high prices of
Flour and Grain during the past year, has been supplied by the commercial
reports of Chicago, the great centre of the Grain trade on this Continent.
They clearly prove that speculative efforts have been made to sustain prices
above their natural level. The process of buying and selling, without a
bushel of Grain changing hands, or ever being owned by the parties to some
of the transactions recorded, is said to be of common occurrence in that city.
This system of doing business is pronounced gambling, and such contracts
are by a law of Illinois declared null and void. Several Chicago operators
have lately been arrested under the provisions of that law, but we have no
idea that any good will come of it. In fact, just such practices are more or
less indulged in this city, and it is quite probable that most of the Chicago
"combinations" and "corners" are largely supported or backed up by New
York operators. Legislative action, either State or National, would most
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