The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-06-19
AN IMPORTANT ARTICLE.
THE RISE ~ WHEAT
Silver's Rise the Cause of It-Every
Farmer Should Read.
philadelphia Anne rican.)

(Philadelphia Anne rican.)
The recent rise in the price of
wheat has given much apparent salts
faction to the organs of the gold
monometallists. not because they see
cause for cOngratulation in any pros
pective alleviation of the burdens of
the farmer, but because it gives a
plausible basis for their assumption
that the price of silver and the
price of wheat has nothing
to do with each other. With charac-
teristic haste they jump to the con-
clusion that the rise in wheat, ETC.,
refutes the theory that the deprecia-
| tion Of silver has caused the fall in
prices.
That decreased supply of wheat, in
other words, "a short crop (other things
being equaD, will cause rise in price,
no sane man ever denied, and that an
increased supply will result in a fall
in price, is no less an axiom. The
result of the fall in the gold price of
silver has been to increase the avail
able area from which the gold using
| countries of Europe can draw their
supplies Of food With the increased
competi tion the price of wheat has, of
course, fallen. But, it is asked, how
can fall in silver increase the COM
petition to sell wheat in the markets
of Europe? The answer is plain: The
premium on gold in the silver using
countries, caused by, the fall in the
gold price of siver, has the effect of a
bounty on exports to gold-using ma
tions. The value of an ounce of sill
yer in Mexico, Argentine or India has
not fallen. The same ounce will pro-
duce as much grain as ever. When
silver was at par with gold at the
ratio Of 154 to 1, wheat sold in London
at 7 shillings a b1shel, and these I
shillings, converted into Mexican ex-
change. were worth about $1.71. The
shilling that our farmers obtained
for their wheat in 1873, converted in
to exchange on New York. were also
worth about $1.71. Both the Ameri-
can and the Mexican farmers received
the same amount, namely $1.71. Both
the American and the Mexican farm.
ers received the same amount, name
ly $1.71 per bushel. from which they
had, of course. to pay the transporta-
tion, insurance and storage charges,
and also brokerage commissions.
To-day, with silver deprecated so
per cent measured in gold. wheat sells
in London at 8 shillings bushel in
gold. These shillings, converted in
to Mexican exchange, are worth about
$3.50, and mas UGH as transportation
charges, ETC., have much fallen in the
last twenty years, the Mexican farmer
receives almost as much silver today
for bushel of wheat as he did before
the demonetization Of silver; and, as
we said before, this silver will produce
as much wheat as ever. The farmer
in the United States, on the other
hand, competing with the Mexican
and Indian farmer. must also sell his
wheat today in London for about 3
shillings, which, converted into ex-
change on New York, amounts to
about 73 cents. The American farm
er receives only this amount less
freight, insurance charges, etc.
The great disadvantage under
which the American farmer labors is
very apparent for it is we'll know n
that 73 cents in gold. the proceeds of
a bushel Of wheat sold in London
(netting our farmers only about so
cents in gold). will not raise as much
wheat as the proceeds of a bushel of
wheat sold in London at 81. so bushel
in silver (netting the Mexican farmer
about $1.25). While an ounce of silver
will purchase a bushel of wheat in
silver-using countries, the English
man will not pay more than the gold
cost of an ounce of silver for wheat
raised in the United States.
The price of silver is controlling
factor in the supply of wheat, and the
fall in silver has given a great i'm
petus to the growth Of wheat in sill
ver-using countries.
But to return to the consideration
OF the recent and very sharp rise in
wheat-a rise coincident with the rise
of cotton and other farm products.
Wheat sold around SO cents a bushel
in Chicago in the first part of March;
Wednesday it closed at 79a cents.
The prime cause for the rise in wheat
is found in the rise of silver. Be-
tween March 1st, and the last of April
silver rose from so to 81 cents an
ounce, or about II per cent. The
value of silver in Mexico and Argen-
tine did not change; the same amount
of silver was asked for bushel of
wheat as before, but this silver cost
the Englishman II per cent more on
May 1st, than on March 1st. OF
course the Englishman could afford to
pay us IL per cent more in gold for our
wheat than before, and wheat rose
between March 1st, and the last part
of April from 50 cents in Chicago to
so cents.
The rise in silver narrowed the sup
ply to this extent. and inaugurated a
legitimate rise. Then the profession
al gamblers, taking advantage of it,
circulated reports of great damage
done to the wheat crop by frosts aud
the Hessian fly-reports which seem
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