The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-06-30
DAILY JOURNAL
THURSDAY, JUNE 80, 1870.
WHEAT AT HOME AND ABROAD.
An Anomalous SltuatiOn-Great Ac-
cumulaflOn-Lack or Trans.
DOFtatiOD.

The European crop prospect anC
price of wheat in foreign markets
sent up with bound, prices of No.
Spring wheat in the Chicago and other
lake markets, the advance. having
been twenty-five cents bushel since
the beginning of the present month.
The result has been to cause an accu-
mutation of wheat at various points
so great that capitalists are staeger-
ing under the unaccustomed load, and
yet seem almost powerless to get rid
Of il. Concerning the causes of this
anomalous situation, the Chicago
Tribune says:
"Long continued drouth rendered
it certain that the wheat crep of
France will fall considerably below
the average. and the yield of Great
Britain will also be reduced from the
same cause. though not to so great an
extent, while the political difficulties
between Russia and Egypt, on the
one side, and Turkey on the other.
threaten to interfere with the supply
from Aisle Minor and the Crimea,
which have hitherto sent large auan.
titles Of wheat to Western Europe.
10 view Of these facts, the French
have recently bought largely in the
markets Of England aud the United
wheat out of Liverpool has
been 50 great as to cause a large de-
mand from that city on New York to
supply the deficiencies of Great Brit
ain. The vessels which left our At
lantic ports for Europe were soon
taxed to their utmost capacity, and
the demand for ocean freiRhtaee
caused the addition of several new
vessels to existing lines. This caused
an advance in New York Drices. but
only moderate one, as New York
dealers knew that the West was
stocked to oveTfowiuR. and feared
that the extra demand would not
prove equal to the enhanced supply
which would be called out by the ad-
vance in prices.
Western prices moved upward.
The farmers at once began to pour in
their stocks, in increased volume,
upon Chicago and Milwaukee, but
many of them began to speculate on
the situation, and sent in large orders
to buy for future delivery, in the ex-
pectation of a still greater advance,
which they based on an anticipation
of short crop In many portions of
the United States. These orders
caused so much competition between
buyers that the price Of wheat 10 our
Western markets soon reached point
at which it was impossible to ship
the grain out of Chicago. except at a
heavy loss The cost of moving a
bushel of wheat from this city
to New York, is scarcely less
than twenty-five cents to day. in
cluding storage charges here, where
as prices In Chicago have been only
eight to ten cents less than New York
prices, for some time past, and were
only fourteen cents yesterday. The
margin Of loss threatening the ship
pers has thus ranged from eight to
/ fourteen cents per bushel, and ii is no
| wonder that they have declined to
empty the elevators, under the cir
cumstances. Hence. while there is
scarcely more than 500 600 bushels in
New York to-day, the Milwaukee
storehouses contain LOO, 900 bushels,
and those at Chicago about 1000, 900
bushels; and this at a time of the
year when they should be nearly
empty.
THE consequences of this over
speculation can scarcely be otherwise
than disastrous. Already some of the
bankers are refusing to lend money
for the purpose of carrying wheat in
this city. The necessary result of this
will be an equalization Of prices be-
tween the East and the West. III
New York prices do not advance,
those of the West must recede till the
grain can be moved away without loss
to shippers This consideration evil
IDENTIFY had some weight yesterday, as
was shown In a decline of fully two
cents per bushel It will be we'll if
the inequality be removed speedily
otherwise we may expect repetition
ofthe disastrous experiences of1S68 9
when wheat was accumulated In near.
ly the same way, and drCpped-from
the neighborhood of two dollars in
September, 1868. to seventy three
cents last winter.