New Ulm review., 1901-12-18
Bad for Milling Industry.


According to the reports of the Agri-
cultural Department at Washington the
exports of wheat from this country for
June of this year were, in round numbers,
100000 bushels, which was fifty per
cent. more than for the same month
last year. In July there were 100000
bushels exported, nearly three times as
much as July, 1900. For the seven
months ending with July the amount of
wheat exported was over 95,OOO,OO0
bushels, or 45,O0O,00O bushels greater
than in the first seven months of 1900.
During August the exports were also
very heavy. The first thought is likely
to be that this is an excellent showing
for this country, yet the contrary is the
case. IL fact, it is the poorest showing
the country has eyer made in the way of
exports, for these enormous foreign ship
ments point TO a commercial calamity
which Is sure to overtake greatindustry
that of four-milling it is
averted by prompt action on the part of
those who have it in their power. The
situation is so simple that any one may
see it. The milling capacity of this
country has increased so rapidly in the
last ten years that foreign outlet for a
part of the -four is an absolute necessitv
to keep the mills rnnning. In fact, the
capacity of many of the mills has been
increased by reason of the export business
which they have built up. The Minnea.
polls mills exported, for the crop years
ending with August, 1899 and 1900,
nearly one third of their output, or about
| 100000 barrels each year. However,
for two years the export trade has stead
lily fallen away: first in loss Of profit,
though the volume of shipments was
maintained. The mills kept their brands
in the foreign markets, although it was
impossible to sell at a profit owing to the
low prices made by European millers.
This year American mlllers have found
it impossible to sell their -four in Europe
except at loss most of the time; and as
a result the volume of -four exports has
fallen off heavily.
The cause of this falling off OF the
flour export business is discrimination in
freight rates whereby wheat, the raw
material, may be shipped from the West
to Europe at a lower rate of freight than
flour, the manufactured product. The
millers of Great Britain and Of the Con-
| tinent are thereby enabled to secure
can be sold cheaper in London, say, than
! American-made flour can be Sold This
discrimination in freight rates favoring
wheat as against flour means, unless relief
be given to the millers, practically the
ruin of the great industry of -four mill
ing, and return-a retrograde step
of this country from being shipper of
a manufactured article to becoming an
exporter of the raw material. In round
numbers, the capital invested in milling
plants is $3.50, 100000, which is only ex-
ceeded in manufacturing by iron, steel
and foundry works, and cotton-gcods
factories.
Take away from these mills their ex-
port trade and they must find an addition
al domestic market for their surplus out
put or close down. The Minneapolis
milling companies would be forced to
sell 100000 barrels of flouri in American
markets more than they have been doing,
| or close their mills one-third of the time.
The latter is impossible. Owing to their
wealth and strength, they might be able
to sell their entire output in domestic
markets, but this means that much less
flour sold by other mills. And at the
same time there would also be all the
| other exporting mills endeayoring to dis
pose of their surplus output in already
everstocked markets. The final result
would be the wiping out of all but few
small mills with local trade, and a