New-York tribune., 1885-03-31
WHE4T MdRKETS.

Dir. III. Mans JACKSON Ill ulsCussinB Iio ho'
cent course of the wheat markets places much
stress upon the tendency in consuming countries
to carry smaller stocks than were formerly car
red, and to buy only from hand to mouth
The power to buy when wanted selections or
various sorts of wheat, he says, has come only
in very recent seasons, but the power has been
so unbroken that almost absolute reliance has
been placed on the hand-to- mouth policy. AS
a consequence, he says, no reserves OF impor-
tance are accumulated, and imports balance TO
q nicely estimated requirements" Thus the
market is left always in an unprovided state,
and sensitive to every influence. The tenor oil
his advice is that this policy is likely to prove
harmful to consumers in the future, particularly
as n second year of bad crops throughout the
producing world might with some reason be ex-
pected Exaggerated chcapness is proving
real obstacle To wheat production, In other
countries as we'll rs in England.
To some extent this reasoning puts the cart
before the horse. The policy of buying from
hand TO mouth is less cause of undue sensi-
tiyeness in the markets than result OF undue
control of the market by speculative influences.
For some years past, in the face OF produc-
ton palpably in excess of ordinary demands,
speculation has operated to sustain ana at times
To advance prices unreasonably. The natural
consequence has been that consumers have lett
those producers who please to put high value
upon their products to carry tho reserves them
selves The United States, at once the CHIEF
producing country and the seat OF the most
powerful and reckless speculation in grain, has
in consequence been left to carry from year to
year steadily increasing surplus, which has
now become so large that the exaggerated
cheapness of which Mr.. Jackson speaks is the
natural result. From that comes reduced
production, and though no one can yet form an
intelligent estimate of the yield OF wheat next
fall. il is already evident that the decrease is
likely to be considerable Nevertheless. the
enormous stock on hand would suffice 10 meet
all deficiencies if fair yield should be realized
from the acreage sown. And, just at this time,
as il on purpose to prevent n clearing away OF
the excessive surplus carried over from year to
wear. speculation begins to reckon upon
dearth of wheat" next fall, and efforts are
made to advance the price before that surplus
can be materially reduced.
On the 1st of March, according to the Agrl-
cultural Department tho supply of wheat re-
naming in the hands of producers was about
BILE supply. viz, the quantity which had left the
hands of producers but had not yet reached
consumers or been exported, was 43.4OO,OOO
bushels. In addition there was the stock of un-
consumed flour which by one authority is esti-
mated at the equivalent of 3S,O0O,OOO bushels
of wheat From this enormous supply on
hand there is yet to be taken the consumption
for four or five months in this country, the
quantity required for seeding in spring wheat
States, and the quantity exported. Home con-
sumption for food and seed will hardly exceed
100, 900, 900 bushels, and the exports during
four months from March to June 80 last
wear were less than 32,000,O00 bushels.
With a prospect that the United States alone
will carry over to the next crop year more than
100, ,OOO,O 900 bushels of wheat, it does not
seem strange that tho consuming countries are
not anxious to increase their load If we are
willing to carry the stock for them, bearing all
the cost and taking all the risk, it is pretty GER
tain that they will leave us to do so.