The times. [volume] (Richmond, Va.) 1890-1903, 1896-03-21
HOW SILVER HAS AFFECTED 'hH
PRICE OF WHEAT TO THE FARMER

pprcr OF WHEAT TO THE FARMER.
We take from the New York Journal OF
Commerce the following highly interest
inc and important communication to that
paper ON the relation Of silver to the price
Of wheat from the distinguished stansu-
clan and writer on political economy
Mr.. Edward Atkinson;
poston March Il, 1896.
To the Editor OF the Journal OF Oo"'-
merce anc Commercial Bulletin
I desire TO call attention to an importan.
work i'm the analysis OF me pllceo VI
Western farm products by i. G. Powers
chief of the Bureau OF Statistics OF La
Dor of Minnesota The full report IS not
at hand. A digest III that report, pup,
Iished in the ST. Paul Daily clone
Is sent herewith. 1 merely desire 10 can
attention to one point.
In 1850 I called the attention Of my III
eiish friends by an article In the "tor'-
nightly Review 10 the prospective danger
IN English rents. ba sed upon the united
States production and distribution OF
wheat The price of wheat IN Mark Lane
al that time had been ruling In excess
OF sos a quarter ] Nenturcd 10 can at
tention TO the fact that the rapid pros
pective reduction In the cost o. faHNay
presently bring the price of wheat IN
Mark Lane to 3is. "A quarter, at when
rate it would still yield as good margin
Of profit to the Grain grower of the Mis-
sissippi Valley as It did in 1873 and lHsO
at 52s. This warning was taken by many.
but was generally discredited. Since that
date the price Of wheat i'm Mark Lane has
fallen below S4s.. and yet the supply OF
wheaL from this country has been con-
tinuous, varying with different seasons
and under different conditions
II has been difficult 10 persuad English
men that our garir growing farmers ara
not all bankrupt. and that suspicion n
their condition has been promoted AT eve
~ point by the bimetallists Of Great Bri-
tain II should be- remarked that English
men as q rule are Incapable of dealing
with the condition Of agriculture, except
in terms Of wheat. From time TO time
I have been called upon 70 make state
ments in Great Britain on this matter.
notably before the Royal Committee on
the Depression of British Agriculture.
My testimony has been received with dis
credit. especially on The part Of the Sill
yer cranks. and has brought upon me
considerable amount Of personal abuse
as IL does here from the silver lunatics.
The statistics Of the price OF wheat IN
England constitute tho great arsenal
from which bimeiallisis dray their am
munition. II Is held that because the
price Of whcst has been rapidly reduced
in recent years gold has appreciated,
hence the effort 10 give silver equal Legal
tender power with gold 81 order to raise
prices. In a communicated to tho sta
ust' ! lately took the ground that If the
appreciation or depreciation Of gold was
TO be measured bv a comparison Of the
prices or wheat that comparison should
be made at the great centre of production
and not NJ a Tar distant centre Of dis
trlhufion, to-vlt-LOndon. II therefore
fen 10 me 70 suggest a careful analysis
mo- only Of the price Of wheat but OF all
our Inherent varieties Of grain I'm the con-
tres Of production. That great work has
been accompn ned by Mr.. Powers.
Referring to the evidence by which his
lable is sustained, ] now submit the con
Olusions 10 which he has been led, which
simply prove that II the appreciation O.
depreciation Of gold is TO be determined
by the comparison of the prices OF wheat
at the centre Of greatest production, II
has deprecated since 1862 the price Of
wheat being higher IN lS9l-i than In 1926.
IT had not varied between the period 1871
10 1874 and the period 1871 10 1890 The
whole decline IN the price OF wheat in
London being fully accounted for. as }
have so often alleged, by the reduction
In the charges Of various kinds between
the Mississippi Valley and London.
On the other hand. II regard be given TO
the purchasing power of gold in the farm
ers hands in the Missippi Valley I'm re-
spect TO tools, clothing and foreign ar
ticies Of food the gold received Tor his
wheat has about doubled in its purchas-
ing power. The growers OF maize and
oats and the converters into provisions
are even IL better condition. They have
been in the receipt In each FIVE years OF
more gold for their product while its
purchasing power has greatly increased
Under these conditions ii is not difficult
to account for the rapid discharge OF
Western mortgages down to the panic
OF 1898, and 1t may not be long before
these farmers. having discovered how
they have been mised i'm support Of the
! silver craze, will turn upon their seducers
and stamp upon them. Facts such as
are disclosed by this most important anal
| ysis Of Mr.. Powers cannot long fail in
| producing their results.