Daily Richmond times. [volume] (Richmond, Va.) 1849-1850, 1850-06-29
A Gigantic Operation in the Flour Market !=-Donot-
JuI Speculation !--Cvmpetition for American uer-


chants
..,,,.ss 70 ,IIIEfFS6EYFr S-'
Dear Srs feel it due to my country to serve her
in any manner in which can render myself useful
during my official residence abroad particularly when
| am able to transmit any information that may affect
the interests of American merchants With your
sent | select your weD-known journal the medium
through which to convey the following intelligence
the American community The following facts have
been placed in my hands by leading English house
OF this city
Within few weeks past an arrangement has been
consummated between the millers of Chill and com
pany of responsible merchants of Valparaiso, with
branch in San Francisco, to supply the California mar
ket with flour. Having monopolized the purchase OF
all the flour to be manufactured in Chill for the next
eighteen months, by stringent contract they
gune of controlling the California market, and of pa
cling arbitrary price upon that Indispensable staple
Their mode of argument is thus: They hold that the
production of wheat during the present year great
much larger than usua-for the that the demand
for Chill flour in California, at the commencement Of
the past year. with prospect OF it's certain and rapid
increase and thus furnishing certain Market induced
the agrcultarsts throughout Chill to appropriate to the
cultivation of wheat much more OF their land than here
tof)re when the demand was limited to the coast OF the
"South Pacific"
The harvest that has just been secured in Chill has
been unusually abundant, bringing down the price OF
wheat 81 cents per bushe in the interior, on deli
very at the mills. At Conception and its vicinity
there are two we'll known merchant flour mills the ma
| chinery of which was manufactured in the United
States. and principally owned by American and
F,uUSh DrODretOrS. i average
these mills is about 25 900 barrels for export which, in
quality is equal to the best flour manufactured in the
| United States.
| other large mills which manufacture monthly tor ex-
port some 1000 barrels; and at the capital Santiago
| there are five extensive establishments engaged in
manufacturing for export Besides which, there are a
| number of minor mills mployed in manufacturing for
| home consumption Thus, from their calculation, it
appears that there produced monthy in Chill from
forty thousand to fortyve thousand barrels OF market
| ,l,fol1 find III
Pacific the principal being California. in consequence
of the great fluctuations that have frequently occur
| red in that market during the past year, varying i'll
nrce from the most exravagant " maximum down to
| ruinous minimum" has induced the mers TO enter
into the arrangement alluded to above by which they
| are to supply to this monopoly the entire product oil
their mills The consumption OIL the California mar
ket is estimated by these gentlemen to be not less
| than twenty five thousand barrels per montb-cacu-
Iatng from the present increase of emigration upon
five Thousand barrels more per monih-Such is their
| argument and calculation
| I consider il important that the above facts should be
| known throughout the United States in order that
American dealers may prepa tor fierce competition
Having conversed recently with intelligent Amer
ican shippers of this city, they clearly of opinion
that this attempt at monopoly will have the effect OF
stimulating instead Of lettering American dealers from
shipping flour via " Cape Horn presume the Amer
California affords without contest. Experience has
demonstrated that -four can be shipped from the States
| to California around the Horn" in perfect state
that the long sea voyage, arising from the necessity
of crossing the equator twice before it reaches its
destination will cause it to sour, and render the flour
of Chill thereby preferable 1t is an error. Hyou will
refer to the report of sales of'American flour in Cali
torna you will find that has been sold there dry and
as sweet as when teft New York Tor that remote
ket conversed, but day or two ago, with an intel
Igent merchant Mr.. Griffin, Of Brook yn, who recent
| ly shipped one thousand barrels from New York. He
informed me that he sold the same, sound when
he shipped it, for t'0entg fire dollars per barrel That
objection is, therefore. futile. Surmses OF avail
in the face of facts. 1t has been proven to be per-
| fectly practicable.
Already two or three cargoes Of -four from the State
have stopped at this Port sin transitu to San Fran
CISCO" since have been in the Consulate, and when
here it was in the most marketable condition. So il
remains tor the future to show whether the American
dealer will surrender to the "Chileno this and ur
disputed market. Will not Oregon, Australia, and the
| Russian possessions too attempt competition
| Nous uerTOnS.
remain, your obedient servant,
/ Z. w. POTTER, U. S. Consul.