The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-05-16
WHEAT CONVENTION.
Some Objections Noted and An.
SWered.

vention, of July 18th, is creating a
great sensation. The Minneapolis
Tribune of May sth, under the head
ing, "a Farmers Wheat Corner" de-
votes over a column of leading edi-
torial, to the subject. 1t admits that
some good may come out of the pro-
ject. 1t says:
"There is little doubt that farmers
may derive benefit from friendly assO-
citation for the purpose of exchanging
sober and intelligent ideas and infOr-
nation. The convention called may
be beneficial in that direction. They
may achieve good by teaching each
other that it may be better to sell
their wheat in small quantities dis
tributed throughout the year, instead
of rushing their crop to market in one
places accelerate competition among
buyers by starting their own indepen-
dent elevators. But that they will be
able to control the worlds market in
such way as to boom the price of
wheat to high figureS-"tO flood the
market or Starve it, as may seem
best"-is a vain delusion. Eighty
million bushels will never be able to
dictate price to two thousand million
bushels
The S0,OOO,OOO bushels are the sup
posed crop of the Northwestern states,
Minnesota and the two Dakotas; and
the 1000, 100000 bushels are the crop
of the whole world. But it must be
remembered that the crops of India,
Russia, AustroHungary and the rest
of the old world, do not come to Chica-
lo% -,
is based on our northwestern crop,
and if we were able to put One-tenth
of that crop on the market, in lump
or withhold it; we could smash any
ring that might be formed by fellows
who are selling millions of bushels of
wheat without having a bushel in
their possession, or ever expecting to
have one.
But we did not claim that option
smashing was to be one of the purposes
of the Forthcoming convention. We
simply stated that such a thing was
possible ''if the movement was made
general" We regarded it as one of
the possibilities of the future.
The Tribune further says:
the farmers of the Northwest succeed
ed in forming the combination which
they desire? The spring wheat crop of
Minnesota and the Dakotas is about
S0,000,000 bushels. But the wheat crop
of the United States is about 500,
600 bushels, and the wheat crop of the
world is nearly 1000, 1000, 900 bushels.
Suppose the Northwest this fall with
drew from the market their $4,000, 600
bushels, which constitute one-sixth of
this cOuntry's crop and one-twelfth of
the worlds crop What would be the
result? Would Europe put up the
price of wheat cents or 10 cents; or
would India, Russia, Hungary
and other countries supply the
vacancy?
eff we are able to hold our so ,OOO, 900
bushels for a higher price, there
stands India with 24O,O00,OOO France
with 100000 900, Russia with 1S5 OOO,-
00O, Austro-Hungary with 100, 900, 900,
Canada and South America with 1OO,-
100000, ready to ill the breach.
Would we succeed in '.bulling" the
price, or would we simply give other
countries the market? Would the
withdrawal of $4,000, 900, or simply
holding it in store for a few months,
with the expectancy of dumping it up
on the market at the first appearance
of material rise, have the effect of
raising the price of the 100000, 900
bushels in the worlds market? In
deed, would not the very existence of
the wheat in the Northwestern gran
aries have just as depressing an effect
as if the wheat were out of the hands
of the first owners and held either at
trade is governed by the supply,
whether that supply be in farmers
hands or in elevators and shippers
hands. So far as the worlds market is
concerned, it is doubtful if the pro-
posed combination, even were it pos
sible to maintain a successful and
workable existence, would have any ef-
feet whatever!
"But the main trouble is in the
worlds market. Prices in Minneapolis
have been relatively higher than in
Chicago, New York or Liverpool. In
deed, prices during the late depressed
much of the time above Chicago
prices. At times during the past
month Minneapolis has paid two or
three cents more than Chicago. If the
farmers wheat corner did not increase
the world price, what would it accom-
plish? 1t might temporarily compel
Minnesota millers to pay more than
the market price for wheat. But that
could not last long, for the millers
would then be unable to compete in the
worlds market, and their business
would shrink to supplying the local
market. The farmers would receive
an increased price for only that
small fraction of their crop which was
consumed in their own state. Mime
sofa consumers would be forced to pay
more for their bread, the largest mill
ing business would dwindle to insignif-
lcant- proportions, and the farmers
would receive no material benefit"
Now it is right that the wheat-grow-
ers should seriouly consider these and
all other objections that can be offered
to their project.
Let us see.
First,-we do not propose to with
draw all Minnesota's wheat this fall
from market. That would be a dam
gerous experiment. If the farmers all
agreed to sell their wheat, say on the
1st of May next, the rings would make
Herculean efforts to break down the
price at that time, and they might
succeed. We propose to sell on the 1st
of September, the 1st of October, the
1st of November, ETC., and at any other
dates when in the judgment of the
committee, the prices are satisfactory.