St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-04-03
WHE4T M4RKET,S.

Mr.. H. KAINs JACKSON in discussing the
recent course of the wheat markets places
much stress upon the tendency in co nsum-
ing countries to carry smaller stocks than
were formerly carried, and to buy only from
hand to mouth. The power to buy when
wanted selections of various sorts of wheat,
he says, has come only in very recent sea-
sons, but the power has been so unbroken
that almost absolute reliance has been placed
on the hand-to-mouth policy. As conse-
quence, he says, "no reserves of Importance
are accumulated, and imports balance to a
nicely estimated requirements. Thus the
market is left always in an unprevided state
and sensitive to every influence. The tenor
of his advice is that this policy is likely to
prove harmful to consumers in the future,
particularly as second year of bad crops
throughout the producing world might with
some reason be expected.
CONNIE uting upon this the New York Tri-
bune says:
To some extent this reasoning puts the cart
before the horse. The policy of buying from
hand to mouth is less cause of undue sens tive
ness in the markets than a result of undue con-
troll of the market by speculative influences. For
some years past in the face of production pal
pably in excess of ordinary demands, speculation
has operated to sustain and at times TO advance
prices unreasonably. The natural conse
quence has been that consumers have left
those producers who please to put a high value
upon their products to carry the reserves them
selves The United States, at once the chief
producing country and the seat of the most
powerful aud reckless speculation in grain, has
i'll consequence been left to carry from year to
year steadily increasing surplus, which has
now become so large that the 'sexagger ated
cheapness'' of which Mr.. Jackson speaks is the
natural result. From that comes a reduced
production, and though no one can yet form an
intelligent estimate of the yield of wheat next
fall, it is already evident that the decrease is
likely to be considerable. Nevertheless, the
enormous stock on hand would suffice to meet
all deficiencies if fair yield should be realized
from the acreage sown. And, just at this time,
as if on purpose to prevent clearing away OF
the excessive surplus carried over from year TO
year, speculation begins to reckon upon "a
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 agricul-
tural department. the supply of wheat remaining
in the hands of producers was about 169, 100000
bushels. The amount in visible supply, viz,
the quantity which had left the hands of pro-
ducers butt had not yet reached consumers or been
exported, was 100000 bushels. In addition
there was the stock of uncOnsumed -four, which
by one authority is estimated at the equivalent
Of 80, 100000 bushels Of wheat. From this enor-
nous 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 consumption for food and seed will hardly
exceed 100000, 900 bushels, and the exports dur
ing four months from March / to June 80 last
year were less than 81, 900, 900 bushels. With a
prospect that the United States alone will carry
over to the next crop year more than 100, 900 900
bushels of wheat, it does not seem strange that
the consuming countries are not anxious to in
crease their load. II we are willing to carry the
stock for them bearing all the cost and taking all
the risk, it is pretty certain that they will leave
to do so.