A YEAR OF WEATHER AND TRADE. 441 



During the second week in July, business was reported as of a 

 'midsummer character/ i. e., normal, in the east, and here the tem- 

 peratures for the week were nearly, or even slightly below, normal. The 

 statement from Louisville is representative: 'A few recent days of 

 nominal summer weather have given a spurt to retail trade. ' 



The third week of the heat and drought affected not only the trade 

 of that particular week, but led to the cancellation of many orders 

 previously given. These cancellations came from the drought-stricken 

 districts, and were naturally a disturbing factor in the trade situation 

 in many Western and Southern cities. 



The week ending July 22 brought local showers over portions of 

 the drought-stricken districts, and although these showers were in most 

 cases but scattering, there was a noticeable improvement in crop out- 

 look and business in the sections where the rains fell. A character- 

 istic report from St. Louis (July 19) stated emphatically that 'the 

 business situation hinged upon the question of rain.' During the 

 week ending July 29 also, ' advices of lower temperature and moderate 

 rains came as a great relief to business throughout the country.' 



The cattle, meat, dairy and produce markets all showed marked 

 effects of the excessively hot weather. At the very outset, the perish- 

 able nature of butter and eggs, and the shortened milk supply, caused 

 a rise in price, which was well maintained. A number of sugar-of-milk 

 factories shut down. Fruits and vegetables became scarce, and ad- 

 vanced in price. Consequently there was a great demand for canned 

 goods, the price of which at once tended upward. This demand con- 

 tinued strong for many weeks, and had it not been for the drought, 

 the year 1901 would have been a poor one for packers and jobbers of 

 canned goods, because they had carried over a very heavy supply from 

 the previous season. The decreased sales of fresh meat during the 

 heated term caused an advance in the price of hides at Boston. 



The drought and consequent lack of pasturage in the southwest led 

 to record-breaking shipments of cattle and hogs to market at Kansas 

 City, the receipts for the month exceeding those for July, 1900, by 

 263,000 head. This extraordinary rush of live stock resulted in an 

 over-supply of young cattle. Buyers dictated prices. The situation 

 in the hide market was much complicated. Tanners were able to hold 

 down the price of hides. Smaller requirements in the way of corn for 

 fodder, and restricted subsequent arrivals of cattle, were expected. 



Of all the economic aspects of the heat and drought of July, the 

 greatest interest attaches to the prices of stocks and cereals. During 

 the second week of July, reports of heavy damage to corn and oats in the 

 Missouri valley belt caused the market to ' break badly. ' The heaviest 

 declines came in the stocks of railroads which were likely to be affected 



