The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-19
LESSON FROM xPoRT

On examining in detail the statistics for
this period we find that the exports of
wheat in 1852 and 1889 averaged 1000, 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, how
ever, become so thoroughly imbued with
the idea that the capacity of foreign nations
to absorb our surplus production was prac-
tically unlimited that he continued for ten
years longer to raise wheat in steadily in
creaSing quantities, the production from
lSS2 to 1856 being more than 137. O00, 900 BUSH
els greater than in the preceding five years,
and that from 1887 to 1891 greater again by
over 12l, 000.0 900 bushels than from 1882 to
1856. Had production stood still 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 in
creaSlng rapidly in the Dakotas. Minnesota.
Kansas. california and elsewhere, Russia,
India ana Argentina Were all adding large
ly to the wheat supply of the world. Rus
S1aS exports of 81. $50. 600 bushels from 1890
to 1886 increased to 527. 2l0. 600 bushels during
the next five years. This increase has con-
tnued with a brief intermission down to
the present time, and the exports from
145, 1856. 900 bushels. Prior to 1881 the wheat
exports of British India were totally insie-
nlllcant, but from 1882 to 1891 that country
Sent 10 the markets of the world the large
~aSSregate of 327, 1874, 024 bushels. Equally re-
markable has been the increase in the ex-
portS OF wheat from Argentina. From 1889
TO 1886, inclusive, they amounted to only
l1,ooZ,ZzI bushels, but in the succeeding five
years they increased to A. 900. sos bushels
while in the four years last past 1Sg2 TO
IS9o) they have reached a total of no less
IMAM los, 49, 1913 bushels. Even Canada. thar
IN 1874, 1889 and 1890 was an importing coun-
try, has, during the last four wears. poured
INTO the already busting granarles of the
world over 90, 900, 600 bushels of wheat. Nor
must 1t be supposed for q moment that all
the great understanding nations of the
word nave materially curtailed their own
productlon- While this has been the case
~ the united Kingdom. Austria-Hungary.
Germany ana France have, within the last
halt dozen years. produced some of the
largest crops in their history.
~ IS also important to note that the new
supPlieS OF wheat have been sent to the
world markets mainly from countries
Where the cost of production-or at least
me cost OF subsistence, which has the same
cHeapenlng effect upon the PRODUCTS con-
SIueraDiy less than in the United States.
ms also had its effect-and a very con-
Sucn Facts as the foregoing, it would surely
De ridiculous to discuss seriously the con-
tehtlon that it is the fail in the price of
SILVER that has caused the fall in the Drice
OF wheat. That both have declined is tr1e
enough, but that the in
tnelr decline has been sufficient to make
lhelr relation a matter of the grayest
douDt, even had We no other and satisfac-
tory explanation of the fall in wheat. This
will be best illustrated by the following
table, IN which one hundred is assumed to
represent the average price of each of the
two commodities during the first five wears
under consideration: