Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1897-10-08
WHY WHEAT Is NOTS2
RELATION OF SILVER TO
CEREAL IN INDIA.
How tho Gold Standard HoldU Down
the Price Clearly Explained By GEN
eral warner-A Clear Exposition Of
the Subject.
BY A. ]. Warner, next Senator from
Ohio,

BY A. j. Warner, next Senator from
Ohio.
In 1891, at a convention Of the Amer
lean Bimetallic League, held at Wash
ington, Moreton Frewin, the distin-
guished English bimetallist, called at
tention to the close relations between
silver and wheat in India, and its eff
feet on the price of American wheat.
He showed that for long time an
bunce of silver in India converted into
rupees, had been the equivalent OF
bushel of wheat, including transpor-
tation to European markets, and es-
pecially had this been the case since
the opening of the Suez canal. He
showed also that, under conditions then
existing, as the gold price OF bullion
silver went down in the American mar
ket, the gold price of wheat would go
down in India, and consequently in
the European markets, necessarily car
rying down with 1t the price OF wheat
in this country. This was then strictly
true and easily explained.
II an ounce Of silver would pay for
q bushel OF wheat In India and lay 1t
down in Liverpool, it is plain that II
the ounce of silver could be bought In
America for 60 cents in gold, then SO
cents in gold would pay for the bushel
Of wheat in India, including Its trans
portation to Europe, which would mean
10 to so cent wheat In this country as
long as India had wheat to export.
Nothing could be palmer than that.
Bimetallists, therefore, called the at
tention Of the American farmer to this
fact and showed him the consequences
Of Indian competition under such con-
ditions.
But it must be remembered that two
things were necessary to produce this
result,
First, the purchaser of wheat in In
dia must be able to convert bullion sill
yer at will into rupees with which to
pay for wheat. This was the condition
then, and continued so till June. 1898.
Second, India must have wheat to ex
port. This India had for many years
in succession, and will doubtless have
again. But for two years past her crop
of wheat, on account of drouth, has
been short.
Bimetallists, therefore, were on
strictly scientific ground in claiming
that as long as the minis Of silver
using countries were opened to the un-
restricted coinage of silver that the
products Of these countries, such as
wheat, cotton and other things coming
in competition with the products of
Western nations, would rise and fall
with the gold price of silver, and that
the premium on gold operated as a
bounty to them in stimulating exports.
But when the minis Of India and other
silver-using countries were closed, this
tie between silver and their products
was broken. Reopen the minis of In
dia, Japan and other heretofore silver
countries to the free coinage Of silver
and the same results will again follow.
In other words, restore the conditions
that prevailed prior to 1893 and the old
relation of wheat to bullion silver will
be restored.
Bimetallists have never claimed since
the tie of open minis was broken that
wheat and silver were any longer nee
essarily held together. This change
was the result of legislation and moth
ing else. That is all there is to that
side of the question.
Now, what has caused the sudden rise
in wheat? A short crop for the world
and nothing else. 1t has been ascer-
tanned that at this time the surplus
from last years crop still on hand
scarcely exceeds seventy-five million
bushels. AS the bread-eating popula-
ton of the world requires from 5,O0O,
900 to 100000 bushels day, this is
barely half months supply. The
world is then made to depend on the
crop of this year already harvested, and
that which will come later from India
and the Argentine country. OF the crop
already harvested, Europe is short of
an average crop by some 25OOOO,OO0
bushels and short enough for consump-
ton by $4,000, 900 bushels. The United
States, which Is the only large wheat
producing country with full crop this
year, will be able to supply Europe $780,
600, 900 bushels, and with Canada, per-
hans. 200 000, 900 bushels in all. Where
Is the rest to come from is the burning
question for Europe. Just what the
crop of India and the Argentine coun-
try will be when harvested can not,
of course, now be told, but enough is
known of the crop conditions in these
countries in advance to know that the
surplus for export can not be large.
Hence Europe sees almost famine
conditions ahead, which, of course,
puts wheat up toward famine prices-a
condition that scarcely occurs five
times in century, and has not occurr-
ed since 1879, and not since 184S with
such intensity as now.
Under the gold standard, with ordi-
nary crops for the world. the ruling
price would probably run from 40c to
to Coo; with famine prices, or price
when famine conditions are being ap-
preached, as now, going up to dol