The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-10-27
MAKING CUR OWN MARKETS.

The most interesting, although un-
noticed, feature Of recent fluctuations
in the wheat and other markets is the
to wait upon the American initiative.
We have been accustomed for many
years to the idea, which was also the
fact, that the market price of leading
American commodities must be fixed in
Liverpool or London, the great finan-
cial and commercial centers of the
world. The fact, of course, is that
prices of commodities whose use is
worldwide are fixed in the worlds
market. The only question is what is
the worlds market? The answer to
that in the past would have been, as
rule, Liverpool or London without
hesitation. We are coming to the time,
and 1t is an open question whether we
have not already reached it, when the
answer to that question will be New
York or Chicago.
1t cannot have escaped notice
that in the heavy fluctuations that
took place in the wheat market
last week the market in Liver
pool advanced or retreated in sympathy
with the cable advices from this coun-
try. 1t used to be altogether the other
way. 1t is so yet to some extent, and
the New York and Chicago markets
vary with cables from Liverpool and
ularly that the Liverpool market
opened strong on account Of a strong
close in New York the day before. or
the contrary. While it is natural that
the market for American securities
abroad should depend upon conditions
existing here, this sympathetic variation
of Liverpool and London prices of
breadstuffS in obedience to New York
quotations indicates a certain shifting
of the power to direct market prices
This country will presently be in a
condition to take the initiative.
The reasons for this change, which
cannot be other than gratifying and
helpful 10 us as a nation, are not diff
cult to understand. 1t is only our own
stupid legislation and economic theories
that have kept US from supplanting her
long ago. Three reasons have won for
Great Britain that mastery of the COM
mercial world which she has main
tanned for so many years. The first is
unwavering adherence to that none
tary system which is most highly de-
veloped and best adapted to the wants
of modern trade. Since the whole ques-
ton was gone over in Great Britain in
the Bullion Report, and definite pol
icy was agreed upon in 1916, Great Brit
ain has become the financial clearing
house Of the world, because of the alb
solute certainty and inviolability of her
monetary system. You cannot clear
your accounts, nation with nation,
through a center where the monetary
unit is liable to the slightest variation.
The fixedness and excellence of her
currency are the first item in making.
England the central exchange for
other nations.
The second reason for England's SUI
premacy is her control of the carrying
trade of the world. This brings her
into contact with all peoples, and
makes it inevitable that they should
do business through her markets; since
she carries their products This is due.
we may say, entirely 10 the imbecile
restrictive legislation placed upon our
own statute books. For the sake of
protecting" an inconsiderable indus
try, we have deliberately elected that
the American flag should be driven
from the seas; that our merchant ma
rine, which once dominated the com
merce of the world, should disappear.
and that the splendid business should
be transferred to the ships of Great
Britain. The third reason for Eng