, 1870-06-24
TIE WHEAT MOVEMENT.

markets Of Europe, with a corresponding de-
preston II prices On this side OF the Atlantic,
an urgent demand has suddenly sprung up
in England and France, which has sentprices
up with bound, the price Of No. spring,
in this market, having advanced % cents
aineo the beginning Ut the present month
strangely enough, the result Of all this has
been to cause an accumulation OF wheat
here and at Milwaukee, so great that capl-
talists are staggering under the mucous
toned load, and yet seem almost powezless
to get lid of it It naay be interesting to
glance at the causes Of this anomalous stu
alton.
Long continued drouth has rendered it
certain that the wheat crop of France will
fall considerably below the average. and
tho yield Of Great Britain will also be re-
duced from the same cause, though not to
50 great an extent, while the political Diff
cuities between Russia and Egypt, On the
one eide, and Turkey, on the other, threaten
to interfere with the supply from Asia
Minor and the Crimea, which hare hitherto
sent large quantities of wheat to Western
&tNAVpEs LII eA0N u A44G9G Attto3 %4C l. AEAGA
have recently bought largely in the markets
Of England and the United States, and the
movement OF wheat ont Of Liverpool has
bee go great as to cause large demand
from that city On New York to supply the
deficiencies OF Crest Britain. The vessels
which left our Atlantic portsfor Europe were
soon taxed to their utmost capacity, and
the demand for ocean freightage caused
the addition of several new vessels to e1-
listing Lines. This caused an advance in
New York prices, but only moderate one,
as New York dealers knew that the West
was stocked to ove1howing, and feared that
the extra demand would not prove equal to
the enhanced supply which would be called
out By the advances in prices.
Western prices mored 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 expectation Of q still greater advance,
which they based on an anticipation Of q
abort crop in many portions Of the
United Statea Thsse orders caus-
ed SO much competition be-
tween buyers that the price OF wheat
in our Western markets soon reached q
point at which it was impossible to ship
the grain out Of Chicago, except at heavy
loaa- The cost Of moving = busael of
wheat from this city to New, York, is
scarcely less than % cents to-day, includ-
ing storage charges here, whereas prices in
Chicago have been only 8 to 10 cents less
1snn aSew 1urK prices, Ior BONE time past,
and were only II cents less yesterday: The
margin Of loss threatening the shippers has
thus ranged from to II cents per bnshel,
snd it is no wonder that they have declined
to empty the elevators, under the circum-
stances. Hence, while there is scarcely
more than 600, 900 bushels in New York
to-day, the Milwaukee stnrehouses contain
!, 700, 600 bushels, and those of Chicago
about :, COX, 600 bushels; and this at
time of the year when they should be near
" empty.
The consequences Of this over-specula-
lion can scarcely be otherwise than disas-
trous. Already some Of the banks are re-
fusing to lend money for the purpose of
carrying wheat IN this city. The necessary
result Of this will be, an equalization Of
prices between the East and the West. If
New York prices do not advance, those of
the West must recede till the grain can be
moved away without loss to the shippers.
This consideration evidently had some
weight yesterday, as Was shown in q decline
Of fully two cents per busheL Il will be
we'll if the inequality be removed speedily;
otherwise We may expect n repetition Of the
disastrous experiences OF leGe-G9, when
wheat was accumulated IN nearly the same
way, and dropped from the neighhorhood
OF g in September, 1865, to 7s cents last
winter.