Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-07-11
THE PRICE OF WHEAT IN EUROPE.

The weather is magnificent. The crops of wheat
and other grain reported to be all that can be
desired not only in the British isles but over the
whole of Europe Yet wheat rises in value at all the
principal English markets. and, with every prospect
of an almost universally abundant harvest, prices
range from sixty to seventy shihiHgs per quarter
People as ignorant of the facts they are of the
true principles which regulate commercial opera
tions attribute this rise in prices to the boarding of
grain by the dealers and importers but a moments
reflection will show that however foolish individuals
may be, no large number of persons would be mad
enough to meet with heavy stocks in hand the fall
which is inevitable if the present encouraging ap-
pearances realized.
The fact is that Europe, notwithstanding the i'm
mense supplies she has drawn from America which
have been, since last harvest, in the proportion of
seven to four, compared with the period in the
previous year, is almost exhausted of stock. Amer
lea herself has little now to spare for the marts of
Europe. The very moderate shipments that are
making in the southern ports of Russia are inter-
cepted at Marseilles. Spain and Portugal which
usually have to spare for u.s. are this year our
competitors in the American and European markets;
and at the Prussan and Russian ports in the Baltic
whence only there is any chance of our deriving
supplies for the next two three mouths the value
of wheat is too high to leave margin sufficient to
induce the importer to risk the fall which, as we
have said, appears to be inevitable when the crops
now approaching to maturity, are secured. Thus,
with the most cheering prospects fer the future we
shall probably see present prices maintained, and
possibly forced even higher, not by suicidal cupd-
ty of holders but by the actual scarcity of wheat
all over the world. This circumstance would be
sufficiently alarming did we not know that, within
six weeks, harvest will have commenced while in
Spain, Portugal, and the South of France the rea-
pers will be busy at work within three.weeks from
the present time. Impossible it is, with such an
exhaustion of stocks as we have shown to exist that
wheat can be as cheap as we have sometimes seen
it, there is every to expect that it will fall to
ffty-fve, even fifty shllings per quarter in the
course of the autumn.
Should expectations in this respect not be dis
appointed, we expect to at the same time con-
siderable falling off in the demand for money. a
decline in the rate of discount and consequent ex-
pansion of trade in most departments of commerce.
The high price of commodities must have vast infu-
ence on the demand for money. Every cargo of
wheat cotton, wine, silk, leather, and many other
articles must now require from 25 to so per cent
more money to pay for it than it did wheu the rate
of discount was low. "A fall, therefore, in the value
ofthese articles, by causing less demand for money,
must reduce the rate of discount, and thus relieve
commerce to extent from the inconvenience to
which scarcity ofthe precious metals has subjected
it. So far as wheat is concerned, everything de-
ponds on the next two months A fine July and
August the European continent and the British
Islands will make a difference of many Millions
May Providence not disappoint our hopes London
Star, June 1871.