The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1892-11-19
THE PRICE OF WHEAT.

The price of wheat continues very
low. With cash quotations at 81 cents
in the local market and 7112 at Chicago
1t is not surprising that farmers con-
slider themselves in hard lines. There
is no money in raising wheat at those
prices. There is great deal of grain
in the country, and, so far as can be
seen, no early prospect of rise in price.
A short crop next year would doubtless
cause an Improvement in the market,
but it will take some time yet to realize
on that prospect. even if it should prove
a reality. A year ago to-day cash wheat
was 93lo i'm the local market and "a to
94l2 at Chicago. At that time the coun-
try was full of wheat and thousands of
farmers were holding it for higher
prices. Many are still holding for higher
prices with better prospect now than
then, for it is hardly possible that wheat
can go any lower.
The present situation should set
farmers thinking as to the cause and
remedy. 1t is absurd to attribute it to
legislation, although this was done dur
ing the recent political campaign with
considerable effect and to the manifest
injury of the Republican party. Farm
ers are very much like other people in
that they are much reader to resent a
supposed injury than they are to ac-
knowledge an undOubted~ benefit.
When they were told that the present
low price of wheat was due to the Re-
publican party they ought to have re-
called the many years during the last
ten or twenty when wheat was high and
every thing booming. This year the
election happened to come when wheat
was away down, and tho farmers con-
claded to have their revenge on the
party in power. 1t is no more than SIM
pie justice to say that they would prob
ably have done the same if the Demo-
Gratis had been in power. When the
price of wheat is 20 cents the farmer
does not care particularly whom he hits
so he hits somebody.
The real cause of the present low price
of wheat is overpIoduction. Tho worlds
markets are glutted with grain, and the
supply being greater than the demand,
the price necessarily falls. American
farmers fail to take account of the fact
that the area of wheat production has
been enormously extended. during the
last few years, in Russia and India.
They go on raising wheat and more
xvhaof oS ;f fhav bo n a cipcb ON fba me- -
ket and a standing contract with one
half the world to eat all the wheat the
other half may raise, without regard to
quantity. The result is they are VIC
tins of overproduction. When Amer
lean farmers raise one bushel of wheat
less than is demanded by the home and
foreign market the price will 60 up;
when they raise one bushel more it will
go down. No legislation can prevent
this. for the law of supply and demand
present low price of wheat is due to the
overproduction in this country, which,
added to the steadily increasing produc-
ton of Russia and India, has caused a
glut in the worlds markets. In 1891 the
area In wheat in India was 1.651. 00G
acres more than in 1890. and in the first
five months of 1s91-92 the shipments
from Bombay. brought out by high
prices consequent on the failure of the
French crop, were greater than in any
similar period since 1874. and two-thirds
greater than during the same part of the