Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-09-12
TIE WaRAT MARKET AND RATES OF
TONNAGE,

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of production include transportation.
The operations Of production end only
when the article produced reaches its final
market. The rate in the final market in
cludes all costs of production. Liverpool
ia tie final market for wheat, and from the
price offered there all the costs of placing it
in that market must be paid. Take these in
their order Flowing, sowing, harvesting,
thrashing, sacking hauling, warehousing,
transportation TO seaboard, transportation
by ocean, insurance, interest, commission,
profit Of the buyer. So far as the grain
grower is concerned, he performs the first
six operations named. That is, he pro.
duces grain to the extent of placing it
alongside the railroad track or river in sacks
ready for transportation. The remaining
seven operations belong to the realm of
speculation. The line of division between
the two classes of operation is clearly
marked as the realm of production. The
rate paid in Liverpool is divided to those
who have performed any of the operations
enumerated, but the proportion given to
production is never determined by itself.
The rates of interest, commission or profit
remain almost fixed, but tonnage and stor-
age fuctuate. The 'harvest of 1880 yielded
in California ,200,0 900 tons of wheat The
supply was good from every quarter, and
Liverpool offered reduced rate The sum
to be paid was to be divided between all
the operations of production. A reduced
rate was offered Instead of divid-
ing the loss pro rata among the OPP
erations, tonnage and storage de-
manded more interest, commission and
profit would not take less, SO production
suffered ali and more than all the reduc.
ton of price consequent upon large sup
ply. Ocean freights in 1880 advanced
from 5l4 to $24 per ton-or an aggregate
sum of the tonnage offered for export OF
81, 10000 Here the grain-growers of
California lost in one year the value of l50
first-olass ships. The average amount an
nually extorted by ocean tonnage would
build feet of ships sufficient to carry
the annual surplus. There is in the State
to day ], 000 900 tons Of grain for export.
At ruling rates the freight from San Fran
cisco to Liverpool viii take toll from the
selling price Of this wheat of 1000, 900.
The actual cost of transportation Of this
wheat viii not exceed $1,000, coo, so that
tonnage VIII receive net freight profit OF
$l4, 100000. The grain-grower has no
voice in the proportion allotted to him.
The gross proceeds Of the sale goes into
other hands first, and jast enough is
given to the grain-gro "to stimulate
production" Just as enough grain is
given to the work animals to preserve
their productive capacity. The price
to the grower fuctuates, but to the
Spectator the rate remains the same
The surplus of 1850 was worth in
Liverpool, $50, OG0,00O The average an
nual production for ten years past-esti-
mated at the average rate-was worth
an aggregate of $500 600, 600. This vast
sum was produced by the industry of less
than go. coo operative agrieulturists.
They should be today the capitalists
of the country-or at least the most
prosperous and wealthy class,
Instead of this, they are COM
paratiyely poor and become poorer as
the soil becomes defertilizad. The specu-
Iators in tonnage and the commission bro
kers have allowed the grain growers enough
to "stimplate production, because the
broker and fpecnlator does not want pro-
duotion to cesse or be diminished. The
grain-growers can remedy this evil. The
amount involved should secure the remedy.
The perpetuation of the existing condition
viii cost the grain-growers of California
SIS, 200, 900 per annum, or within five
years an aggregate sum sufficient to master
and control all the operations of producing
wheat in its final market at Liverpool, and
reaping all the profit OF production. In
other words 1t costs the grain growers ev-
cry year to remain the slaves of speculation
a sum sufficient to make them masters for
all time to come. The solution of the
problem lies in mastering the commercial
appliances and channels by which the sub
sequent operations of producing wheat in
Liverpool are effected, and this is simply
question of money intelligently directed.
The money exists in the vast sums to be
saved, and the intelligent direction of the
means is to be found in the organization of
this now wasted capital. But so long as
the grain growers Of California entertain
the delusion that to place wheat III sacks
at the railroad station or on the bank of
the river is the end Of production, so long
they viii continue to produce without
profit to themselves an article highly prof
liable to the class which completes the
operation Of production by placing it in its
final market