Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1896-11-13
WHY WHEAT is UP.
BECAUSE OF REDUCED SUPPLY AND
INCREASED DEMAND.

INCFEROEO
Statistics of Exports Explain tho Rapid
Risc-Not ut All Due to n ssGoldbug
Conspiracy"
In 1891 the wheat harvests of Europe
were extraordinarily bad, and us our
crop was the largest we ever harvested
we had an export. But since
then our exports have been steadily di-
m%inishing. from 225, 900, 900 bushels in
1912 to 1876, 600, 900 bushels in 1906.
During this period of decreased demand
for u wheat the Argentine Republic
came to the front as an exporter, and
the price of wheat naturally enough
tended downward. Beerbohm, one Of
the highest authorities upon the wheat
market. computes that the worlds wheat
crop averaged 262, 900, 900 quarters, of
eight bushels, for the four years 1886,
279, 600, 900 for the four years 1SS7-9O
and 304, 600, 900 quarters for the four
years 1914. The estimated increase in
the demand for wheat for food is 2, 1000,
DOC quarters q year. and in eight years
the supply increased not 18, 900, 900
quarters, but az, 600, 900 quarters. That
the price should fall was inevitable.
But the worlds available supply Of
wheat on July I. according to Brad
streets, was 25. 900, 900 bushels less than
it was II year before, and the worlds
crop for this year is estimated by the
Liverpool Corn Trade News at 90, OOO,.
600 bushels less than last year. This
makes the supply 115, 900, 900 bushels
less than the supply a year ago. The es.
innate OF this years crop is 95, OOO,O 900
bushels less than the average crop for
the four years 1914. The normal in
crease Of demand due to increase of Don.
ulation since the middle or average
point in that four year period would be
about 65, 600, 600 bushels. The condi.
tions are very favorable, therefore, for
an advance i'll price. This advance, due
to the buying of American grain for
Europe. began very slowly. AS the pur-
chases Increased the price rose faster.
When American wheat was shipped to
Australia and India, both of which are
accustomed to export wheat. the price
jumped suddenly. Vessel room for out
going wheat was we'll engaged early in
the season, and only when it became
evident that Europe had got to buy all
we could sell and had already engaged
the ships to carry it to her did the price
here rise rapidly.
The following are the lowest and
highest quotations on the New York
Produce Exchange for cash wheat, No.
3 red:
July 1........c5as0G7ss Sept. 49,. 1880 7Ohs;
July 5.......G 3iaa64is Sept. % 7as "a 1874
Aug. l........Gs s@GsA Sept. ao......7G''s@775s
Aug. ia.......M GOES Oct. 6........sos4gslA
Sept. l"...... 66sssa67ls Oct. Is. 5000. s~lssosl3ss
Sept. s........6714g6ss Oct. 2O....... ssssss@9111S
Now compare these rising prices with
the steadily increasing exports for three
months and three weeks:
Exports Of Increase
wheat, includ- over last
ing flour. year.
July"..................12, 1884, $40 4.G0S, U2l
August. ............. 10, 1885, 13 4.O89...11
september. ............ IL, 23i 1874 4,Goss, Isl
October, three weeks
partly ESTIMATED. a. :. 1876 5.1a5j, :.2l
lotal. ................5 81, Isl, sos 1S, 93f.I..
Here is an incrsase OF about one-half.
Ao w SAtGts III WaS IL 1lttlS more G'ct
the export Of wheat and t,nir for the
corresponding three months asa three
weeks of 1896. Vessels to carry grain
have been chartered both Oil TIE Atlantic
and the Pacific coasts for dates as f..r
ahead rs next April, and this proves
how prepostcrous is the nretcnsa of the
silverites that the advance i'll wheat is
the result of u "Eull'' movement coll
ducted by a lot Of gold standard men
for the sake of influencing the election.
There is a shortage of wheat, and the
price is going up, just as it went down
when wheat was produced faster than
it cor!d be consumed. Coinage laws
and speculation have had nothing to do
with either movement of wheat.-Tred
Perry Powers.