FINANCIAL REVIEW OF 188T. 



seemed inevitable. Rain came, but too late to re- 

 pair the damage. The severity of the reduc- 

 tion fell upon Kansas, Illinois, Indiana, and 

 Ohio, and in other of the surplus-producing 

 States. Large quantities of the green corn 

 were cut for fodder in consequence of the de- 

 struction by drought of pastures, and therefore 

 a close estimate of the yield of this cereal can 

 not be made, but the Department of Agricult- 

 ure calculates that the crop will not vary 

 much from 1,456,000,000 bushels. The quality of 

 oats is below the average, but the enlarged 

 area planted will probably bring the crop up 

 to about 659,000,000 bushels. The crop of 

 barley is estimated at 55,000,000, that of rye at 

 24,000,000, potatoes at 134,000,000 bushels, 

 and cotton at about 6,650,000 bales. At the 

 International Seed and Grain Convention, held 

 in Vienna early in December, the reports re- 

 ceived indicated average crops of wheat in the 

 principal exporting countries of the Continent, 

 and a slight deficiency in India. The require- 

 ments of Great Britain and France would, it 

 was estimated, be less than those of last year. 

 The corner in wheat, which was the feature of 

 our market in June, carried the price so high 

 that it drew large supplies of the new crop of 

 winter wheat from farmers' hands, and it is 

 probable that all the available surplus was then 

 thrown upon the market. After the collapse 

 of the corner, about the middle of June, the 

 export movement was stimulated, and spring 

 wheat came from the producers rapidly imme- 

 diately after the harvest. The visible supply 

 of this cereal at the end of the year was about 

 44,000,000 bushels against a little over 62,000,- 

 000 at the close of 1886. Taking the prices in 

 the New York market on or about the 1st of 

 January in each year and the total yield for the 

 previous season, we have the following aproxi- 

 mate results in quantities and values : 



JFhe Stock Market After an irregular move- 

 ment in January the course of the stock market 

 was generally upward until June, when a bear 

 combination commenced operations, which 

 were aided by the unsettled feeling resulting 

 from the collapse of the corners in coffee and 

 wheat, and the tendency was downward until 

 early in the fall. Then came a recovery fol- 

 lowed by another decline in October, after 

 which the market reacted and gave promise 

 of a decided improvement. Toward the close 

 of the year, however, there was a feverish feel- 

 ing due to various causes, and the tone was 

 more or less unsettled to the end of the twelve- 

 month. Comparing closing prices on the 30th 

 of December with those at the opening on 



January 3, thirty-three of the active stocks 

 exhibited an average decline of 10 per cent. 

 During the first few days of January, Cen- 

 tral New Jersey, Reading, Western Union, and 

 Richmond Terminal were pushed upward by 

 the cliques, and this was the beginning of the 

 movement for a control in the latter which 

 resulted in the deal with the holders of East 

 Tennessee, Virginia, and Georgia preferred 

 stock. The rise in Central New Jersey was 

 also due to purchases for control, as it subse- 

 quently appeared, by the Corbin party, who 

 had in view the reorganization of the property 

 on a dividend paying basis. Hocking Valley 

 advanced in consequence of buying for the 

 Vanderbilts, and Reading was favorably influ- 

 enced by the advice of Mr. Gowen, to holders 

 of junior securities, to accept the plan of re- 

 organization. Raiding of Richmond Termi- 

 nal followed the announcement of the in- 

 tended issue of new stock, with which to pay 

 for East Tennessee, Virginia, and Georgia pre- 

 ferred, and thereafter, for the remainder of the 

 month, the bears succeeded in keeping the mar- 

 ket in a more or less unsettled condition. The 

 passage by the House of Representatives on the 

 20th of the interstate commerce bill, and its 

 transmission to the President on the 25th, as- 

 sisted the bearish demonstrations, and the par- 

 tial embargo of the commerce of the port of 

 New York through the strike of the long- 

 shoremen and coal-handlers also had an un- 

 favorable influence on the market. Stocks 

 were feverish and generally lower during the 

 early part of February, but before the close 

 there was a recovery, and sixty out of sixty- 

 six more or less active properties exhibited a 

 gain, comparing prices at the end with those 

 at the beginning of the month. During the 

 first week the London and Continental mar- 

 kets were unsettled in consequence of war ru- 

 mors ; the threatening attitude of the Knights 

 of Labor on strike in this city excited some 

 apprehensions, and reports that the President 

 would sign the interstate bill were used by 

 the bears to their advantage until the bill was 

 signed on the 4th, and then there were indica- 

 tions that the event had been discounted. The 

 strike of the longshoremen came to an end on 

 the llth through a refusal of other organiza- 

 tions to assist it by also quitting their employ- 

 ment; the European markets recovered on the 

 subsidence of the war feeling; the Grangers 

 advanced on favorable traffic reports ; the coal- 

 shares steadily improved on news that a strike 

 on the Reading had been prevented, and the 

 tendency of the whole market was upward, 

 notwithstanding realizing sales and bearish 

 pressure, for the remainder of the month. The 

 tone was generally strong during March, and 

 only five out of sixty-six stocks recorded de- 

 clines. The favoring influences were the as- 

 surance of the success of the Reading reorgan- 

 ization scheme, as indicated by. the prompt 

 deposit of securities; the announcement that 

 an extra session of Congress would be unneces- 



