The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1896-10-22
Enormous Expectation Caused by Short
Crops in India, Russia, Argentina,
and the United States.
Average Price Gradually Declined Since
Silver Was Demonetized india Buy-
ing Rupee Paper and Wheat
Speculation Has Only Followed
Natural Tendency of High.
er Prices-What MIR.
John Cudahy Says

rOneOuS statements are MADE, among |
which being one attributing the ad-
vance to McKinleys probable election,
and the probable defeat of silver In Mo-
vember. One Republican paper gives
credence to the statement that mas
much as the value of wheat to the far
mers in this country has increased in
the neighborhood OF $100,0O0,OOO, there
can be no possible doubt but that the
gold sentiment has done 1t.
The value of wheat is gauged abso-
lutely by the unalterable laws of sup
ply and demand, aided temporarily at
times by speculative influences. Spec
ulators occasionally advance or break
the price of wheat, according to the oppor-
tunities offered in the exercise of the
business. There are evidences at the
present time which show clearly that
either the Republican national COM
mittee. or a syndicate in close touch
with 1t. has recently been partici-
pating in a speculative syndicate which
has had for it's purpose the making of
campaign capital in addition to a few
dollars.
1t is often asserted that during the al
most continual decline in the price of sill
yer bullion since the decentralization of
silver in '73. the price of wheat
has advanced, and the differences of
relative worth have been gradually
widened. That this is not true is shown
in the report of the United States de-
partment OF agriculture, showing the
average price of wheat for the years
1866 to 1895, inclusive. Before silver
was demonetized 1t sold at S129 per
ounce. From 1866 to 1869 the average
price of wheat was $1.1S a bushel. From
1870 to 1873 $l.04; from 1874 to 1880.
95 cents: from 1881 to 1885, So cents;
from 1886 to 1890, II cents, and from
1891 to 1895, 60 cents. With the appre-
citation in the price of gold the tenden-
cy is for higher prices for wheat, and
IL Is recorded that in so far as money
can have any influence on the price
of wheat, high prices for silver have
always brought high prices for wheat
Such advance, however, would not be
uniform with the advance of both sill
yer and wheat Under q bimetallic
system the premium would be removed
from gold, and silver, of course
would advance. This would in a meas
ure equalize the advance in the price
of wheat. According to the estimate
made by one of the most prominent
grain dealers in Chicago, the advance
from 7O-cent wheat would be to about
81, while silver would at once go to
$1.29.
The Wall Street Journal gives the
following explanation of the weakness
! in silver, so far as 1t is considered as
a commodity:
"The explanation given by dealers of
| the weakness in silver is absence of
demand for India. This is considered
confirmatory of the reported shipments
of wheat from here to India and makes
| the silver situation interesting. Here
| tofore India had wheat for export and
| silver was in demand in London to
| pay for India wheat. Having no wheat
| now to export, the demand for silver
| has lessened, and India in buying
wheat is buying it on a gold basis and
| paying practically $1,30 a bushel in sill
yer for what costs about 70 cents a
bushel in gold in Chicago.
I'VE learn, however. that other fac
tors at this moment are more power
fully at work lessening the demand foI
silver One is the heavy liquidation In
London within the past ten days in In
dia rupee paper 1t seems that Lon
don operators during the summer in
anticipation Of the sweeping victory
in the United States for free silver
bought rupee paper as a speculative
venture. These operators made q
profit In this paper. sold It, and India
being the natural home for 1t has been
buying. Another factor has been the
very dull trade of East Indian coun-
tries and China and Japan for raw
materials, such as teas, silks, etc"
Aside from the speculative influences
n. l.. a.tlV h
laws of supply and demand have un-
doubtedly governed present prices OF
wheat. Extraordinary causes are al
work this year to advance the price OF
wheat and were 1t not for the depres,
sion which is due 'to the rise of the
price of gold, wheat prices would now
be very high. The wheat crop In the
United States is very short this year
being 56,OOO,OOO bushels less than the
average crop for twenty years, The
last government crop report placed the
crop at All ,OOO, 900 bushels. Add to this
the available supply Of 100000, the
official estimated reports makes the to
tai crop 463 900, 900. The expectation o.
wheat has been phenomenal this year
and If kept up at the present rate, viii
reach fully $50, 900 bushels, leaving
but 313, 10000 900 bushels for consumption
and seed purposes in this country
which is not enough for the actua
needs.
Probably one of the greatest inhu
ences that have ever appeared in the
history of the wheat trade has beer
Argentina's production of enormous
quantities of wheat, which began 6
few years ago, and ever since tha
country has been factor of the frs
Importance. Last year she shipped
enormous quantities of wheat and this
year nothing, nor will she, as her croI
is practically ruined. The crop o
} Australia is only 80 per cent. of las
year, and the most conservative of the
estimates of the damage to the Rus
sian crop give a decrease under las
year of 10000, 900 bushels. The almos
complete failure of the crop in India
has brought about condition of things
, which has never existed in the history
of the grain trade before. Add to thest
features the failure in the potato croI
in Germany and in Ireland
The expectation OF wheat in guam
tity has been astonishing, in the las
two weeks over 100000 bushels hav
ing been shipped. A number of car
goes were sent to India, being the frs
: shipments ever made to that country
Big operators In wheat like John Cud
ahy. w. T. Baker w, r. Linn, Angus
Brosseau and Armour have had men ou
for months to estimate this years crop
The reports received Dy them hav
| consa5 tbapo 10 piya 10 tb