Show Y CANCELS I T at a WHEAT ORDERS s fAction Causes Violent Dro Drop p iH f. f a in m Prices on Chicago Board of Trade if It S h Au Aug IS Authoritative ex- ex plan was obtained tonight for tor tho the thoI thet t I sensational llon 1 action notion of exporters In suddenly sud- sud d denly cancelling during the last forty- forty night eight hours contracts for or largo large amounts I t of Dr wheat heat purchased In tho the United I States roundly estimated at b bushels The announcement of or the the- cane can can- e collations caused wheat heat prices to break wildly mildly toda today the tho downward plunge at atone much Vs Ic one bno n time lime amounting to as to He a n. bushel smashing the market to tot toJ J t for the September delivery 1 Most of or the contracts cancelled led wore on on wheat that had been Intended for Italy Kaly The buyers however howe according to toone one of or the largest c exporters porters here hero found all nIl prospective profits cut off b by n of oC the Italian government to fix maximum n prices or otherwise n- n 5 jent ent nt speculation A A careful ardul statement nt of oC the situation made this evening by the t resulting r was exp exporter referred to Ho lie did so after aftel I consulting with a prominent Italian here here who Is in a position to know tho the C facts The statement follows s I J a It has been said laid the tho Italian government govern govern- v ment had authorized repudiation of oC I onerous onerous outstanding purchases of ot wheat While there seems Reems no doubt cancellations were effected the occa- occa rion Ilon thereof should no doubt be laid to toa toa toa a different cause In the first place the Italian government government gov gov- could not lawfully authorize such a n procedure and even en If such v authority was vested In the tho officials at 4 Home Rome to exercise It would be he the begin begin- ping of or the destruction of oC her credit In tho United States What has hns happened Is Is h hen very en probably this There has luul been heen In the last few tew weeks a n. largo large amount I of C wheat bought by Italian firms or I private Individuals ls and to such parties jho Jhu Italian government ma may have Is Issued Issued Is- Is sued nn an or order er prohibiting or regulating speculation b by the tho Italian grain dealers deal denI- dealers denIers ers with millers and consumers through the kingdom On this account the Italian Importer ma may have figured I greater advantage nd In sacrificing his profit on purchases from the United States than In letting the contracts be shipped showing good paper profits but which and more might bo be lost b by ef efI efforts efforts ef- ef I forts of oC the Italian government to give the tho consumer as cheap wheat as JA pos pOS- sible Much tuch of oC the tho wheat heat bought b by Italy last winter Inter was resold to the eon- eon aumer at cost st. Just now no the government o of or Ita Italy Is not likely to buy bur wheat In the United States not only because thc they think our prices are arc too high but on account of or high exchange Tho The exchange basis If between n the United States and nna Italy It 1 Is about 2 22 per per cent over over normal The The basis basis between Argentine and Italy Is approximately normal Some well informed in- in 1 formed forme Italians predict there will be bero yno ro buying of or wheat b by their govern govern- ment until next January or February It there Is no substantial decline In Ini I i orth America before next winter the Italian demand domand will wUl then probably fall fallon fallon fallon on Argentina |