The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-11-04

ger of Producing . Blockade, aS Then,
But There Is an Abundance OF Reasons
Why Two-Doilar Wheat should Not Be
Expected-The Cost of Production
An economic writer, in an editorial IL
the New York Post, on last Friday
morning, makes the following ooserva-
lions, pre- predictions Of wheat:
the advance in the New York price Of
terday, for the first time since the grain
market yielded in the middle Of Septen-
Der, has been rather generally taken as
matter Of course. The words wheat
market is al present in singularly in
teresting position. So far as can now be
judged, the season Of 1897 is one of
those rare occasions when practically
all the predictions of short foreign crops
are fulfilled in the event. Thus far, the
only wheat-producing nation where pro-
pnecieS Of serious crop damage have
failed TO materialiEe has been the United
States; the most trust worthy crop ex-
perts agree that We have raised this year
one of the three largest wheat crops
in our history. Even so, however, the
English statisticians reckoned two
months ago, assuming conditions which
have now come to pass, that ordinarily
up all the years production and good
part Of the worlds reserve supply in
store house.
such an assumption, even then, led
the foremost English grain authority to
ask, Will America and the other export
ing countries be likely TO part freely
with their wheat, knowing that il will
all be wanted?' The question has al
ready received q partial answer. Last
month, according to the Bureau of Sta
tistics. there were 1855, 900 bushels OF
wheat shipped from the United States;
an increase of 100000 bushels over
September, 1895, and Of %, 400, 600 over
even 1891. This enormous September
export was made possible by the eager
ness with which European importers
bought our wheat. taking huge quaint
eies even on a radily rising market.
With their immediate needs supplied,
the foreign consumers held off again
from the market, and the price accord
ingly receded. But with this months
reaction Of ten or fifteen cents per bush
Ell in the market, came a decided slack
ening in the forward movement OF farm
supplies. During the last week of Sep
TENDER, nearly nine million bushels of
wheat were delivered at the ten chief
receiving centres OF the interior; an in
crease of two million bushels over the
corresponding week In 1896. BY the
middle of October these weekly deliver
les had fallen considerably below eight
million bushels, and did not greatly ex-
coed the same weeks record year ago.
Last week, deliveries at Chicago fell off
20 per cent even from the week preced-
ing. The meaning of this shrinkage was
apparent. Beerbohm's prediction of last
August had already been in a measure
realized: the American farmer was not
willing 10 sell his wheat on any material
concession. The recent recovery in the
price Of wheat at exporting points was
a logical and necessary consequence,
and the markets future action becomes
a matter OF great interest
1T is fortunate, however, that the
spectators did not get the seasons
early wheat market under their control
hey did obtain such control in 1879, un-
der rather similar conditions. The re-
suit that year was So violent an advance
in price that Europe virtually stopped
buying, used Up its reserves, and drew
out from Russia and elseR here supplies
OF wheat which rarely come upon ex-
port market. OF this process the bou-
bic consequence was, first, a three
months almost complete embargo on
our grain trade, and second, a violent
fail in the domestic price A similar
speculative forcing-up of prices in the
fall Of 1891 had much more serious and
permanent results. The present market
is as nearly as possible free from such
artificial influences.
That the current advance will bring
the wheat market to the excessive fig
ures Of 1879 is hardly probable 1t may
perhaps, be true that the worlds avail
able supply, in proportion to population,
is smaller now than it was then But,
on the other hand, the world now mas
resources % new production which it
uAL AiJs tOS~ESs NG1iS deSc, anu
which, with favoring harvest weather
will soon oe drawn upon 20 help in
meeting actual deficiencies. Asia. AZ
RIGA, Australia and South America have
practically entered the export wheat
market during the last two decades It
must also be remembered that the for
eign consumers have in a very unusual
degree been anticiDat ting needs by plr-
chasing and importing the Indian corn
left over from our two enormous harry
escs of 1926 and 1886. Our exports OF this
cereal, during the nine months ending
September so. have reached to 147. AGO.
600 bushels against SS.0O0,00 for the
same period in 1895 and only 81. 500 900
in 1895. Such remarkable expansion can
mean nothing except the substitution OF
corn in the foreign consumers ordinary
food.
Furthermore, II must be kept in
mind. not only that our own capacity for
wheat production has vastly increased
since 1879, but that the appliances for
cheap production have made ii possible
10 place grain on the market at a net
cost 10 producers which would have been
pronounced impossible a generation ago.
To people who still have a lingering sus-
picion. because wheat does not rise 10
T% "a 81