

FINANCIAL REVIEW OF 1898. 



263 



The Crops. There was an improvement in the 

 grain crops of Europe during 1898, but this gain 

 \vas not sufficiently marked to meet the require- 

 ments of these countries without large importa- 

 tions. The wheat crop in the United States was 

 greatly in excess of that of 1897, and indeed the 

 largest on record, exceeding by 63.868,705 bushels 

 the phenomenal yield of 1891. The conditions 

 during the maturing and the harvesting of the 

 staple were exceedingly favorable. The crops of 

 corn and of oats were also in excess of those of the 

 previous year, while the yield of cotton was almost 

 the largest on record. Early in April wheat for 

 May delivery advanced to $1.25 per bushel, stimu- 

 lating a rise in the price of other cereals, and the 

 market value of cotton also improved. In May 

 there was a further rise in wheat, on news of the 

 suspension by France and Italy of their import 

 duties, and the price of the May option in the New 

 York market rose to $1.91 per bushel. Later in the 

 month there was a sudden fall in the price, due to 

 realizing sales based upon the report of the Agri- 

 cultural Department, which made the general condi- 

 tion of winter wheat 86.5 per cent., against 80.2 at 

 the same time in 1897. The speculative wheat deal 

 in Chicago collapsed in June, and the price of the 

 July option fell from $1.03 on June 1 to 75-J cents 

 on June 20. The official report of the condition of 

 winter wheat on June 1 was 90.8 per cent., and of 

 spring wheat 100.9 per cent. The report for July 1 

 showed a decline in the condition of winter wheat 

 to 85.7 per cent, and of spring wheat to 95 per cent., 

 but conditions improved in the following month not 

 only for wheat but for corn, copious rains relieving 

 the drouth. Stocks of wheat in farmers' hands were 

 small at the beginning of the season, the grain was 

 in large request at the harvest, and visible supplies 

 were reduced in August to the lowest in many years. 

 The export demand for wheat was good in Septem- 

 ber and it grew urgent in the following month, 

 stimulated by the unsettled political situation in 

 Europe, and cash wheat in New York advanced 

 from 73f cents on Oct. 1 to 80J on Oct. 24. The 

 improvement in price continued to the end of the 

 year, responding to the large domestic and foreign 

 demand, and the New York market closed on Dec. 

 31 with wheat 81J cents, while cash corn was 44-J 

 cents per bushel. Cotton was also strong at 5|- cents 

 per pound for middling uplands. 



The following shows the yield and the value of 

 the crops for the years 1897 and 1898 on the basis 

 of the price at New York at the beginning of the 

 years 1898 and 1899 : 



less. The excess of merchandise exports over im- 

 ports for the year was $620,536,129, against $357,- 

 113,816 for 1897. The excess of exports over im- 

 ports of merchandise, coin, and bullion for 1898 

 was 503,250,079, against $382,946,395 in 1897. Gold 

 exports were $141,956,898 in excess of the imports 

 in 1898, against $253,589 imports in excess of ex- 

 ports in 1897. 



Purchases of sixty-day sterling for investment 

 operations, to hold until it ran to sight, which 

 were the feature of the exchange market at the 

 close of 1897, continued to be the feature in Janu- 

 ary. After opening at $4.82J for sixty-day and 

 $4.85| for sight, the market gradually advanced to 

 $4.83i for the former and $4.86 for the latter, 

 but on the. 10th the tone grew easier, though rates 

 declined only fractionally, and the feature for the 

 remainder of the month was a good inquiry for 

 long sterling and commercial bills resulting from 

 investment operations in exchange. The inherent 

 weakness of the market was disclosed in February, 

 when, influenced by the disturbing events of that 

 month and by the advance in rates for money, in- 

 vestment holdings of sterling were marketed and 

 concurrently there were large offerings of exchange 

 drawn against purchases of stocks for European ac- 

 count. Rates fell heavily and gold began to move 

 from London for New York toward the close of the 

 month. After opening at $4.83^ for sixty-day and 

 $4.86 for sight, and advancing to $4.84 for the for- 

 mer and $4.87 for the latter by the 14th, there was 

 a decline to $4.82^ for sixty-day and $4.85 for sight 

 by the close of the month, and long bills were then 

 freely sold as low as $4.81| and short bills at $4.84. 

 The tendency for exchange was downward during 

 March, rates falling from $4.82* for sixty-day and 

 $4.85 for sight at the opening of the month to $4.81 

 for the former and $4.84i for the latter by the close. 

 The importations of gold from Europe and from 

 Australia, amounting to $29,158,400, were remitted 

 for with bills which had been bought for invest- 

 ment, and therefore these remittances had no influ- 

 ence upon the market. In April the exchange mar- 

 ket was weak, rates falling from $4.82 for sixty-day 

 and $4.85 for sight at the beginning of the month 

 to $4.80 for the former and $4.84 for the latter by 

 the 12th, and fractionally reacting by the close of 

 the month, when there was a firmer tone. The Bank 

 of England rate of discount was advanced on the 

 7th, and this tended to widen the difference be- 

 tween long and short. One feature was the sale of 

 sixty-day bills at $4.79| and of sight bills at $4.83 

 on the 21st. Imports of gold from Europe and Aus- 

 tralia amounted to $24,259,791. The tone of the 

 exchange market was firmer in May, and gold im- 

 ports fell off to $9,518.990. Easier money here in- 

 duced some buying of long sterling for investment, 

 purchasers taking advantage of the low prices rul- 

 ing for these bills early in the month. Rates opened 

 at $4.81 for sixty-day and $4.85 for sight, with 

 sales at $4.80i for the former and $4.84 for the lat- 

 ter, and there was an advance by the close of the 

 month to $4.85 for sixty-day and $4.88 for sight. 



Foreign Exchange. The exports of merchan- 

 dis_e for the year ending Dec. 31, 1898, were $155,- 

 785,313 above those of 1897, and the imports of 

 domestic and foreign merchandise were $107,637,000 



The movement was irregular in June, the tone being 

 strong early in the month and easier thereafter, par- 

 tially recovering by the close. Then business in 

 exchange was somewhat restricted, owing to theun- 



