The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-09-20
FROM PRESIDENT LOUCKS.
What of the Future in Price OF
Wheat?

What of the Future in Price of
Wheat?
Forecasts are always more or less
problematic. Yet there are certain
factors that may be gagged and
effects calculated on with reasonable
accuracy. First, a contraction of
currency will cause general reduc-
ton of prices. Second, an imitation of
currency will cause a general rise of
prices. These are admitted propo-
sitions and will not be disputed by
any student of political economy
The present situation confirms the
first proposition. The yield of
wheat, according to the official re-
port, will be from 125,OOO,O0O to $780,
100000 bushels short in the United
States. In addition to this the
shortage in Europe is very heavy.
Were it not for the demOralized con-
ditiOn of business, wheat should sell
for one dollar per bushel at the
home market this year. Two
months ago wheat had reached it's
lowest market price on the Chicago
market. Week after week since
then it has gone lower and lower in
the face of the certainty of a great
deficiency. Parallel with it there
has been violent contraction of
the currency. The eighth financial
conspiracy is being attempted which,
if successful, will utterly destroy the
use of silver for money purposes.
To assist in carrying out this in
famous robbery panic must be pre-
cipitated, causing a wild rush for
savings in banks and the boarding
of money in private vaults or Sc
creted at home, so that at theSpres-
ent time there cannot be more than
$500 per capita in active circula tion.
Hence the very low prices now pre-
valent. In my judgement we have
reached pretty near hard-pan now
Not that the panic is over-it has
only fairly begun, but that the vol
ume of money in circulation from
now on will increase, and with the
increase must come higher prices.
First, all the capital that can be
made out of the silver scare has
been made. It cannot be pounded
much lower. With so many of our
mines closed down silver will proba-
bly, advance soon. Second, we are
undertaking the world on wheat
and the other products of the farm,
hence gold will return to us. AL
ready $40, 100000 has arrived or is on
the way. More is sure to follow.
In the next three months we should
receive $50,0OO,OOO to 100000, 900.
This increase of money alone should
increase prices 20 per cent. The
money power have, by contraction,
accomplished one-half their plan,
viz, reduced prices as low as they
dare with safety. 1t is estimated
that values have shrunk $4,000, OOO,-
600. They have taken advantage of
the down market and MIXED it
freely. Now they are preparing to
boom prices and make another pile
on the upturn. Fisk & Sons, the
great bond brokers, assure them
that there is room for $500, 900, 900
more money and urges national
bankers to rush in the bonds and
take out circulation to the full limit
allowed by law; that there is a
chance for great profit in doing so.
The New York clearing house has
already issued $36, 100000 of clearing
house certificates which take the
place of SO much money, and the
orders are already in to the secre-
tary of the treasury for a large
amount of national bank bills.
Messrs. Fish say there are bonds
enough available for further issue
as stated, of $4OO,OOO,OOO. AS the
bonds out are only 1857 ,OOO. 900 and
the present circulation is about
$178,713,S72, representing nearly
100000, 900 of bonds, leaving some
thing less than $40O, OOO,O 900 of bonds
to bank on if they were all available,
their estimate is too high, but it
would not surprise me if the nation
al banks would increase their circu-
lation by 5000, 100000. This, with
the returning gold and the re-invest-
ment of hoardings, will increase the
amount Of money in actual circula-
tion very largely and with it will
inevitably come a considerable in
crease of prices. I believe that
those who hold their wheat will
receive much better prices than
those now prevailing. The old party
press are doing the farmers a great
injury in the persistent misrepre-
sentation of the probable yield