Staunton spectator. [volume] (Staunton, Va.) 1849-1896, 1891-08-05
stauittoi, Spectacle.
WEDNESDAY, AUGUST 9Th. 1884.
.,shall Wheat be held out of Market"


WEDNESDAY, AUGUST 9Th, 1881.
s'ShalI Wheat be held out Of Market"
The Cincinnati Price Current, a paper
published in the interests of the producing
classes and which is an authority which de-
serves their respect and confidence, in its
issue of July 30th, on the question Of hold
ing wheat from market, as proposed by the
circular issued by the Farmers Alliance,
says -
1--WE publish what is alleged to be copy
of circular distributed by Farmers Ali
ances. It urges farmers to cooperate IN
Withholding wheat from market, by COM
mon consent, until satisfactory prices be
reached. The argument is that the aver
age market price in Liverpool for twenty
years has been $1.45 per bushel; that the
equivalent of this, considering freight, etc. {,
is $1.35 at New York, $1.25 at Chicago,
$l.23 at Minneapolis, Duluth and St.
Louis, $1.2S at Toledo, Detroit and Gin
cinnati-and the logic of the argument Is
that this basis should be recognized as the
minimum for sales this season.
This argument implies that the English
markets are recognized as the governing
factors for surplus American wheat.
What governs the English markets? Is
it not supply and demand, as closely as
anything can be so governed9 This will
likely be conceded, with the claim that the
requirements for consumption will SO gov.
ern the English markets as TO call for
Americas surplus on the advanced basis
indicated.
It is true that European countries are
this season more than ordinarily deficient
in wheat and rye production. But this fact
does not necessarily imply such an extraor-
binary advance in the price of bread as the
Alliance circular claims to be possible under
the policy of holding back supplies in this
country.
1t is alleged that 'the greatest COM
petitor of the farmer is the speoulator, AID
his competition is not at all fair, because he
sells what he has not got and can. sell un-
limited quantities, while the farmer has no
more to offer than nature grants to him."
There is something of fallacy in the de.
duction drawn from this proposition
Speculation may temporarily depress
market values of wheat-and such does in
fact frequently result. But speculation
likewise advances such values-and we
doubt if it can be demonstrated that the
average of such market values is in fact
lowered by speculation.
1t is the popular thought just now among
those in the trade that if wheat should be
greatly advanced in the near future in this
country it would be due to the speculative
sales that have been made for future de-
livery, in excess of convenience for making
the delivery to the extent regarded az likely
to be demanded. But the farmer and the
trader may accept it as certain that i
prices are thus greatly advanced the
holders Of those contracts will resell theil
claims rather than call for the grain to IL
shipped--for it is not within reason tt
count on an extraordinary enhancement il
wheat values in European markets during
any portion of the year 1891, even if il b.
possible within 1892.
The fact that the diminished production
Europe this season lessons the buying
power of the producing classes in those
countries should not be overlooked il
making calculations as to prices for the
American surplus. A large part of the
consumption is by the producing classes,
and they will shift their methods SO IS to
exist as far as possible on their other pro-
ductions, and reduce their purchases to the
minimum.
The ordinary yearly consumption OF
wheat for the countries Of the world usual
~ embraced in such statistics aggregates
about 2.100,000,000 bushels, 400, 600, 000
in Europe, and 100000, 900 in other coun.
tries. A survey of the probable production
the current year indicates an aggregate OF
about 2,050,000,000 bushels. If the de-.
ficiency in production were more evenly
distributed than it is the shortage would
have little significance. AS it liz, it calls
for an unusual movement, from surplus to
importing countries-thus adding more
than ordinarily to the cost.
The average yearly production of rye in
Europe is about 1,175, 600, 900 bushels-of
which Russia and Germany represent about
S5O,000,000 bushels, or 70 per cent. To
what extent this crop is deficient this sea-
son has not been made clear-but there is
ground for the view that the shortage may
reach 200, 900, 600 bushels, possibly more
1t is difficult to estimate the extent to
which this may be Offset by favorable cons
ditions Of oats and barley production, and
consumption of other produce.
If the rye crops of Russia and Germany
were not greatly deficient the shortage in
wheat would have little Importance. But
the estimated deficiency in this grain sug-
gests enlarged home requirements for
wheat in Eastern Europe-nOt, however,
to the extent Of the deficiency in the rye
crop, for this will largely be supplanted by
other products. Fortunately the barley and
oats crops Of Europe are generally good,
and if the American maize crop should
reach maturity on the basis Of its present
promise there would be but little, IL any,
deficiency in the worlds grain production
this season, including maize.
Taking in tho whole situation, the
American farmer is justified in expecting q
fair advance in prices for wheat this season
compared with recent years--but if it were
possible to carry out the general plan OF
Withholding the grain from market to
secure an arbitrary price the result would
be disastrous one. Il is not unreasonable
to calculate that Europe could GET through
the year without particular distress for
food, with what is in sight exclusive of the
surplus which this country has. AMI which
is 80 great that in order to get it marketed
within the crop-year in satisfactory man
"a -