The Current Situation

A month ago, liquidation in the grain and security markets became pronounced, after an optimistic winter of steadily advancing prices. The question arose as to the real significance of the March setback in the speculative markets. Some held it to be the "peak" of a major business cycle. Others considered it merely a temporary readjustment of speculative dreams to hard realities, and thus a movement of secondary importance.

It is still too early to interpret the recent break in prices with entire accuracy. Yet, in last week's developments, the party of the second part seems to have received partial confirmation of its views in the gradual firming of grain and security prices.

Certainly there is nothing to worry the money market. Interest rates on call loans, in some ways the reliable barometer, and the general trend of money rates have eased perceptibly. Good commercial paper is scarce, since concerns are not borrowing extensively.

The business of the country in general seems in a fairly prosperous and stabilized condition. The leading factor which is likely to improve or depress it is in all probability the 1925 staple crops. Accordingly, Wall Street today is watching and analyzing weather maps and agricultural reports as never before.