The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-11-29
THE PRICE OF WHEAT.

The statement has several times FOUND
place in the dispatches that the Russian
government has IL eaate--sssaa ton pro-
posal to countries engaged In producing
wheat for export to enter into COM
bination for the purpose Of keeping the
price OF wheat at one fixed and anvarying
figure. The com binatica 10 TO take in tina
United States. Russia, the Argentine Re-
public, India and Australia
This proposition for the formation OF an
international wheat trust" II indeed 1t
ever was seriously contemplated. Is CAL
merical. The primary step In the forgaa-
ton of "trust" for the purpose Of ad-
vancing the price OF an article. or TO
maintain the price az certain point, IS
to gain absolute control OF all OK the
sources OF supply and to limit production
to the exact amount which the msxket
can absorb at the price fixed BY the ixust.
While the bulk OF the export supply Of
wheat is produced IN the countries n5ned,
none OF them unless 1t be Russia anx Aus
tria. are armed with the powers snecss-
sary to carry out any scheme OF shifting
production. and the operations OK nature.
In any event. would De likely TO play hay-
90 with the calculations.
Russia and Austria might, isdsed, With
the powers which these governments pos-
sess. compel the farmers In taeir respect
i've domains to limit the amount OF acre
age devoted to the cultivation of wheat.
and establish a government monopoly OF
tho sale of the grain. at a fixed market
price, precisely as is done with tobacco
culture in France. The limiting Of the
acreage would be but an incident, how
ever. They could not regulate the aound-
anee Of the harvest, at homo or abroad.
II there were an extraordinarily abundant
crop in the countries which are he heaS-
lest importers, of course that would lesEen
the demand for foreign wheat. and the
government would be left with surplus
GA It's hands. while IL there should es
failure of crop in any OF the large wheat
producing countries. the Limitation on
acreage in the others would bring the
world face to face with a shortage of
breadstuffs. an extraordinary price would
be placed on the products and the farmers
who had grain to sell would be extremely
FESTIVE under a law which forbids them
to take advantage of the high price.
AS far as this country and Australia are
concerned, there never could be any such
system established. The people OF this
country are not yet ready for the gov
eminent paternal!sm which would under
take To regulate for them the exact
amount OF land which each farmer could
be permitted TO cultivate IN any staple;
and the people who are not farmers are
hardly prepared to see the government so
into a scheme for acting as middleman
and price-insurer. guaranteeing a market
and fixed price for any article. OF all
forms OF special privilege, this would be
among the most odious. and would be ex-
tremely distastefu! even TO the men to
be benefited thereby. AS a mere side is
sue, IL would require an amendment TO
the constitution before the government
could exercise any such powers. which
IN Itself Is SUFFICIENT TO reIegate the whole
matter into the realms OF the impractical
bic
The probable solution OF the problem
OF reproduction OF wheat Is not likely
to come through the agency OF any gov
ernmensai action. 1t will be brought
about BY natural causes. already at work
As other crops prove more profitable, the
area devoted to wheat viii shrink, until
an equilibrium between demand and sup
ply is established. with an average annual
price sufficiently high TO pay 10 raise the
crop.
The competition OF new farms In the
West drove the Eastern farmers into
abandoning wheat as crop. and the sub
stitaaon OF other crops therefor. The
eompetition OF Russia ard Argentina Is
forcing a measure OF like condition now
upon ths farmers OF tho West, and
they viii have 20 follow the ex-
ample OF their Eastern brethren to
sems extent There IS this advant-
aga which shsy have-ths eonsanp-
ton % wasAt has almost kept pace With
tbs Increased supply. notwithstanding the
enormous expansion OF the latter. The
demand vii continue to incrsass IN tx.
proportion. bat the srnoUn. OF new area
o. production 10 limited. These factors
n themselves. viii soon o2eyats 10 bring
about an equilibrium and = return Of a
period o: Permanently Tso4 prices for
waszE