Omaha daily bee., 1896-10-24

foreign nations to absorb our surplus pro.
ducton, a big drop In prices would lnev-
itably have occurred As II was, however.
the average export price for the entire period
showed a falling OF Of less than 3 cents
per bushel, as compared with the preceding
i've years.
The period from July, 1871 TO June. 1882,
has already been referred to. The average
In the United states The acreage devoted
to wheat In this country In 1875 was nearly
100000 acres Tor more than one-thrdD
greater than In iS7s and the crop OF 1877
price Of wheat during these five years was
go cents per bushel higher than the average
Of the preceding Ave years, and even higher
by 23S cents per hushel than during the
period from 1867 to 1879, which preceded
the so-called demonetl2atiun OF silver The
reason is to be found In a serious failure
of crops in western Europe The years
1S19-'Sl yielded in the United Kingdom the
smallest crops OF any three years since 1852,
and II was regarded as a matter Of great
satisfaction In that country that an abun-
dant surplus in the United States prevented
the prices of wheat and flour from rising
any higher than they did. II Is worthy OF
note that In 1S67-'6S the failure OF crops
In Great Britain. which the United States
was not able to make good out Of its own
surplus, caused an advance in price of no
less than 70 cents per bushel. The still
more complete crop failure OF IS79-'Sl, how
ever, was at once made good by enormous
importatons Ohe largest on record even
down to the present time) from the United
States, and the price OF wheat in the United
Kingdom rose only AZ cents per bushel
These are facts that cannot be disputed and
they have a tremendous significance in
showing how prices are made.
WHEN PRICES WENT DOWN.
This brings us to the beginning OF an
era that notwithstanding certain marked
oscillations may be described as one Of
gradually falling prices. The average prices
on the farm In 1882 and 1888, and again in
1883, 1890 and 1891, were substantially higher
than the average in 1878, and for the crops
of the five years 1SS7-'91, taken collectively.
the farmer received nearly . cents per bushel
more than for the crops of the years
1SS2-S6. The general tendency, however,
was clearly downward.
On examining In detail the statistics for
this period we find that the exports Of wheat
600 bushels less than in 1881. the
very first year OF the period
we are now considering being thus marked
by an enormous falling off in the demands
OF foreign countries for our wheat The
American farmer had however become so
thoroughly imbued with the idea that the
capacity OF foreign nations to absorb our
surplus production was practically unlimited
that he continued for ten years longer to
raise wheat in steadily increasing quanti
ties. the production from 1882 to 1856 being
more than 900 bushels greater. than
in the preceding five years. and that from
1887 to 1891 greater again by over l21, ,000.-
900 bushels than from 1882 to 1856. Had
production stood stil in other countries
it's increase in the United States would
not OF itself. have brought down prices:
but at the same time that It was increasing
rapidly in the Dakotas Minnesota Kansas
California, and elsewhere. Russia India, and
Argentina were all adding largely to the