Little Falls herald., 1898-01-14
WHEAT IN INDIA !.

[BY A. J. WARNER, in the Bineta1list]
In 1891, at a convention of the
American Bimetallic League, held at
Washington, Moreton Frewin, the
distinguished English bimetallist,
called attention to the close rela-
tions between silver and wheat in
India and it's effect on the price OF
American wheat.
He showed that for along time an
ounce of silver in India, converted
into rupees, had been the equivalent
OF a bushel of wheat, including
transportation to European mark
cts, and especially had this been the
case since the opening OF the Suez
canal.
he showed also that, under condi-
tions then existing, as the gold price
of bullion silver went down in the
American market the gold price of
wheat would go down in India, and
consequently in the European mark
cts, necessarily carrying down with
it the price OF wheat in this country.
This was then strictly true and
easily explained.
If an ounce OF silver would pay for
a bushel of>wheat in India and Law it
down in Liverpool, it is plain that if
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
it's transportation to Europe, which
would mean 40 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 attention of the American
farmer to this fact and showed him
the consequences Of Indian competi-
tion under such conditions.
But it must be remembered that
two things were necessary to pro-
duce this result.
First, the purchaser OF wheat in
India must be able to convert bull
lion silver 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
export. This India had for many
years in succession, and will doubt
less have again. But for two years
past her crop OF wheat, on account
OF drought, has been short.
Bimetallists were on strictly scien-
tific ground in claiming that as long
as the mints of silver-using countries
were opened to the unrestricted coin.
age Of silver the products of these
countries, such as wheat, cotton and
other things coming in competition
with the products of western ma.
tions, would rise and fall with the
gold price of silver, and that the
premium on gold operated as a
bounty to them in stimulating ex.
ports.
| But when the mints OF India and
other silver. using countries were
closed, this tie between silver and
their products was broken. Reopen
the mints of India, Japan and other
heretofore silver countries to the free
coinage of silver and the. same re.
suits 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 mints was
broken that wheat and silver were
any longer necessarily held together
This change was the result OF legis
latlon and nothing else, That is al
there is to that side OF the question
Now, what has caused the sudder
rise in wheat' A short crop for tn,
world and nothing else. It has beer
ascertained that at this time tht
surplus from last years crop still or
hand scarcely exceeds seventy.f}vt
million bushels. AS the bread.eatina
population uf the world REQUIRES
from 100000 to 6,o00.0o0 bush
els a day, this is barely a hal
months supply. r. :.:..'>. :. :. E =a
4 The world is then made to depenG
on the crop OF this year alread,
harvested, and that which will come
later from India and the Argentine
country. OF the crop already har