New-York tribune., 1897-08-23
WHEAT HISTORY.

After proclaiming dollar wheat for some
time before any such price was actually reached.
the produce market lost something of the nat,I-
raj satisfaction when that quotation was record
ed. not constructively nor by arbitrary asslmp-
ton that cash must be worth so many cents
more than some option, but in general transac-
iions. When the exchange pretends that wheat
for immediate delivery is worth cents more
than wheat deliverable within the remaining ten
days of August everybody knows that there is
fraud somewhere. but on Friday no fictitious or
imaginary quotation was required to support the
claim that wheat has AT last passed the dollar
mark again
II is five years and five months since wheat
has sold for n dollar a bushe! al New-York.
After ranging above that price nearly all the
time for twenty months wheat dropped on March
l.. 1892. TO 99i. cents. and has never seen that
price since until Friday. As all know. the cs-
pccial cause of high prices in 1SW-'92 was not
scarcity at home. for the crop in this country
was large beyond all precedent. but failure Of
crops in other countries. The price mounted to
81 - at NewYork in April. 1891 which was the
highest point il had touched since June 1881.
To many people il is difficult TO understand why
wheat. having gone above 81 81 bushe in
every year Of the last sixty until 1855. has ruled
so far below thar figure most of the time since
The sufficient explanation is found in the great
reduction Of Transporting charges.
The average farm price OF wheat in The five
Central States between the Pennsylvania line
and the Mississippi River was over 81 a bushe
in most years prior TO 1852 Even in the States
west of the Mississippi the average farm price
was over 81 a bushel in eight Of the twenty
years prior to 1889 Of which records are obtain
able, and the cost OF transportation ranged from
20 cents down 10 II cents in December from
| Chicago to New York. and from 2Gi. to II cents
| from Kansas City TO Chicago. The railroad war
of 1881 cut Chicago rates so far that they have
never since recovered and with IS cents The
| highest December rate in the sixteen subse-
| quent years Ii and Il cents have been of late
more common. The Kansas City-Chicago rate
has also been reduced though not as much. in
| some years to about IL cents in December
Roughly speaking, fully quarter of the cost
of transportation in winter has been cut off
since 1850. and but for that great change the
price realized by the farmers would not have
been sufficient to encourage the enormous pro-
| ducion since attained.
| The average farm price last December WAS
| 90 cents III tie central States between the
| Pcnns ylvana line and the Mississippi River
| and $50 cents in the States west of that river
| including the DakOtls Low ~ these prices
We're they exceeded by more than 20 cents u
| bllShcl those obtained in 1S5. and largely tx.
| c"edcd those obtained IN other recent wears
| The partial failure of foreign crops especially
| in India and Australia. last year gave American
wheat growers a new period Of prosperity and
the following shortage Of crops in Europe this
year seems not unlikely 10 bring back the ey-
pericnces Of lS90-'92 The average prc. Of
whea! at Ncw-lork rose above 81 in August.
1870. and never dropped below thai figure again
until March. lN.r.. except 10 9SGI IN August
| 1891. The Lowest price recorded from Seplrn-
| hcr |. 1880. TO July l. 1891 was 9>is cents. and
! after ~ cents in August and % IN September
| 1891, III" price I'D moi again drop al any time
| below 81 thar wear. and the average of daily
| quotations waS aDovc 81 until March 1872
! When il i remembered that The Yield in HOS.
| years was really larger than in 1874 when the
| jric,. fell IN \cw-lork TO ~, cents il may be
! realized how potent The foreign demand has been
! in controlling the price. for This most important
! Of Northern farm products