Lyon County times. [volume] (Silver City, Nev.) 1874-1907, 1897-08-21

L Il nu6s OVNA q ROAAO VA y ~DAOt
Hindoo received practically the
same price in silver for his wheat,
although there we're fluctuations
from one year to another.
The same, of course, is true OF
the American price. In 1895 an
ounce of silver would exchange for
| 70 pounds of wheat in New York.
In 1873 an ounce of silver would
exchange for SO pounds at that
point--approximately the same.
But from one year to another there
had been a drifting apart, as re-
suit OF crop conditions, speculation,
etc.
Let US now go on step. When
the gold price of silver began to
fall in London while the silver
would continue to buy about the
same quantity of wheat at Bombay,
it became to the interest of the
importer to exchange his gold for
silver and buy wheat in India. AS
a result, East Indian wheat reached
the London market, which, but for
the fall in silver, would never have
got there at all. Right here comes
in the principle of supply and de-
mand. The fall of silver increased
the supply of wheat in the English
market. In 1878 the exports of
wheat from India to England were
less than a million bushels; in 1892
they exceeded fifty million bushels.
The London price began to fall, but
in falling it kept close to the de-
cline of silver, for the reason al
ready given, namely, that the silver
price in India remained nearly sta
tionary, the supply there having
practically kept pace with the de-
mand. From this it will be seen,
as before stated, that the connection
between silver and wheat has been
the result of financial and CONNER
cial conditions. When these con-
ditions change, of course the rela-
ton between silver and wheat will
change. At the present time these
conditions are very much changed.
Instead of exporting large guam
titles Of wheat to compete with
ours, India is struggling in the
grasp of famine which has swept
off millions of her people. Of
course, the connection between
wheat and silver as result of East
Indian competition, is, for the time
being, broken. Any man of just
ordinary intelligence should be able
to see the principle involved, and
any honest man, when he sees it,
will admit it.
Since 1892 there has been a
marked falling off in the exports
of wheat from India: First, in
that year the crop was about 20
per cent. short; second, in 1898
the mint of that country was closed
to silver on private account, which
gave the rupee a fictitious value
above that of silver bullion, and
third, Argentine doomed up as a
competitor. Argentine produces
and sells wheat on the basis of
paper currency cheaper even than
silver. Her competition involves
the same principle as that of India.
AS gold rises it becomes sharper
and keener. But it so happens
that at the present time Argentine
has no wheat, or very little, for
export. In short, we are Temporal
rily relieved of both Indian and
Argentine competition, and, as a
matter af course, the price of wheat
rises. And this takes place just as
silver receives staggering blow by
its demonetization in Japan, and
falls.
The specific connection between
wheat and silver being thus broken,
the former is now affected just the
same as commodities in general are
affected by the appreciation of gold.
With our two greatest competitors
literally famine-stricken and inn
porting wheat instead of exporting
it, we find that great cereal selling
for rs cents a bushelin the Chicago
market, when under normal none
tary conditions it would bring at
least 81 so.
The subject will be treated fur
Their in subsequent issues. This
| q nk;olo u :aAoaIol .aaO.ol.. - $3.50