Los Angeles herald., 1891-09-15
FACTS WORTH MONEY
Farmers ExhOrted to Hold
Their Wheat.
An Alliance Circular of AL
legged Importance.
Cereals to Command Fabulous Prices
Before Spring.
Mhe Shortage in the European Grain
supply Represented to Be Equal
to Four Times the Ameri-
can Surplus.
AssociAted Press Dispatches.

Associated Press Dispatches.
Sr. PAUL. Sept. 14.-"Facts Worth
Money is the heading of new circular
an relation to the wheat question now
being sent out by the State, the ALI
ance organ in this city. 1t urges the
farmers to hold back their wheat, as
better prices await them in the next
few weeks. Wheat will be $3.50 soon,
and possibly 50. A review of the Euro
pean shortage is made the basis OF this
claim.
George M. Miller, editor OF the State,
in speaking of this news to the farmers,
says: I'VE still believe large amount
of the grain to be held back; that the
rush is practically over. Our adyices
from thousands of correspondents are to
this effect. These early sales were by
Rhose distressed for money and those not
connected with the Alliance"
The circular says the farmer needs
honest advisers; he has now too many
of the other kind. 1t sharply raps the
elevator men and millers, grain dealers
and speculators and 'those newspaper
men who 90 to them for their informa-
tion about the condition of the market
and lay it as valuable truth before the
public' Two months ago all these ad-
Eisers predicted low prices on account OF
the enormous crops in the United States,
and advised the farmers to sell as soon
as they had chance. They admit now,
says the circular, when it has been thor
oughly ventilated, that an immense
shortage exists in Europe, which
our country can offset, but they try to
tempt the farmers into sacrificing their
crops by different tricks. The press, for
instance, is overflowing with articles
congratulating the farmers on their i'm
unense crops. These articles are suspi-
cious, for, says the circular, we hope
few newspaper men are SO ignorant that
they do not know that large crop is of
itself no ground for congratulation. 1t
Ia the farm value of the crop, and this
does not depend on its size.
The newspapers now, it says, en-
tighten the farmers that Europe will
need all they have raised, and more,
but that they cannot buy it "at exorbit-
ant rates."
The circular states that the figures of
the Vienna congress, show that Europe
has raised 25S, 900, 600 bushels of wheat,
and 80 ,OoO, 900 bushels of rye less than
last year. Last year it consumed all its
own wheat and $4,000, 900 of its reserve,
HOO ,000. 900 bushels from America, all
that other countries could supply and all
its rye crop. This year it will have
from America 220, ,000,0 900 bushels, if
the extreme figures on our crop are
taken. 1t will have an aggregate short
of 748, 900, 900 bushels in its own crop,
so 0,OD0, 900 less to be drawn from the re-
serve. In short, it will have 220, ,000,0
bushels from America to make up the
total deficiency of $4,000, 600 bushels,
and must consequently eat 67S,000,000
bushels less grain.
1t being admitted, saws the circular,
that the shortage in European crops
is by far the worst ever known
in history, it would be natural
for the Europeans to expect high prices.
The so-called advisers of the American
farmer tell him that one dollar per
bushel in Chicago is about the highest
Europeans will stand, and that they
would rather eat other things than pay
more for wheat. The circular says this
assertion is ridiculous. The average
price for wheat, it says, for the last
thirty-years in England, on a gold basis,
was $l.4l per bushel, which corresponds
with $l.22 in Chicago. During the
highest years of that period the
average was $1.7734, equal to $1.574
in Chicago. During lS67-68 the average
was $1.g5, and prices went as high as
1921, equal to more than 50 in Chicago.
These high prices did not, so far as the
recollection of the writer goes, change
the diet of Europeans to any great
extent.
The shortage in Europe being four
dimes as large as the American surplus,
says the circular, there is no doubt
wheat will reach the highest figure ever
known before this year is up, and will
exceed it by far before the new crops
come in.
The talk that one dollar wheat in
Chicago is high under the present cir
Gumstances, is, it says, absolutely ridic-
ulous. OF course, if the farmers should
dnsist on offering more wheat than there
is money to buy, they could keep prices
down q little, but, says the circular, the
warning came in good season to the
spring wheat farmers, and they will
hold back better than the spectators
expected. There never was any good
reason for having the wheat price SO
dow as it is today. Those who are forced
by absolute necessity to sell, or who are
too idiotic to understand the situation,
are not SO numerous that their actions
can keep down the prices any length of
time, and as soon as the fools are out of
the market, the intelligent farmers will
get prices adequate to the circumstances.