Evening star. [volume] (Washington, D.C.) 1854-1972, 1904-12-03
THE WHEAT SITUATION
Crop Many Million Bushels
LESS Than Last Year.
DEMAND OF MILLERS
WANT MORE LIBERAL DRAWBACK
ON THE IMPORTED PRODUCTS.
Secretary Wilson Not Apprehensive
Over the Outlook-Discusses the
Conditions and Prospects.
By WILLIAM E. CURTIS.

BY WILLIAM e. CURTIS.
Written for The Evening Star and the Chicago
Record Herald.
The statisticians of the Department of
Agriculture estimate, unofficially and SUBJ
Ject TO revision, the wheat crop of the
United states for the current year to be
about 5o0,OO0000 bushels, which is nearly
U.oOO,0OO less than the crop of 1903. 12O,-
100000 less than that of 1902 and nearly
200,OOO,0O0 bushels less than that of 1901
The consequence is high prices and a re-
turn to dollar wheat, which is very popu-
lar with the farmers. and, according to the
opinion of economists, frst-class tonic
for the prosperity of the country at large,
regardless of the fact that it increases the
cost Of bread in a corresponding degree
The late l.. L. Letter paid S75OO,OOO as a
penalty for having an enterprising and am
bilious son. But he often told me that he
felt no regret when he remembered that
Joes unsuccessful corner brought the price
of wheat up to 81 bushel and prosperity
to every farm house in the land. Indeed,
Mr.. Letter was convinced that his Sacri-
flee had more to do with the restoration ,of
prosperity in the United States than the
election of Mckinley. He was convinced
that it could not have occurred otherwise.
With McKinley's election to establish a
sound currency and to restore the financial
credit of the government, and $7,50O,OOO Of
Mr.. Letters great fortune scattered among
the farming community as spending money
the conditions were complete.
But wheat has gone above 81 a bushel
again without any sacrifice on the part Of
Mr.. Letter or any other capitalist, and the
phenomenon is attracting considerable at
tention from the economists as well as
those who are practically interested in the
situation.
Millers Want Drawbacks.
The millers of Minneapolis and the north
west are demanding more liberal draw
backs on the imported wheat which they
make into flour for export, and the advo-
Gates Of reciprocity treaties see an advan-
tageous opportunity for a commercial ar
rangement with Canada under which we
can supply our shortage from the grain
fields beyond the border. The miliers Of
the northwest cannot forfeit or abandon
the foreign market which they have been
building up at great expense and trouble.
To drop out for even a month would re-
suit in a large direct and a larger indirect
loss. The duty on Canadian wheat is %
cents bushel 1t takes four or more
bushels of wheat to make d barrel of flour.
Hence. the duty on a barrel of -four is
equivalent to about 81. Under the draw
back law a miller can have this duty re-
funded by showing proof that the flour he
exported was made from the Identical
wheat that he imported. But there is great
from new soil with the American wheat
grown farms which have been under
cultivation for several years, but draw
backs are not allowed upon exported flour
partially made from imported wheat. 1t
is also necessary to export the bran and
other byproducts made from imported
wheat in order to get the "draWbacks,'
which Is Improbable because of high
freights.
For these reasons the milers are asking
more liberal drawbacks. They argue that
dollar wheat and situations like the present
are likely to occur more frequently in the
future and every time they do occur, every
time there is a shortage of crops, they will
be compelled to import Canadian grain to
supply their export demands. They argue
that this is a good time to make a reci-
procity treaty with Canada, because all of
the advantages are now on our side, where
as a situation Is likely to occur when the
advantage will be on the other side.
Decline in Wheat Crop.
George E. Roberts, who is a close stu
dent of economies, calls my attention to
what Secretary Wilson calls "the wheat
wave" that has passed over the country
during the last twenty-five years. Its
movements are illustrated in most strik-
ing manner by a comparison of the wheat
crops in the different states in 1882 and
1903. The first comparison should be made
in the states east of the great rivers as
follows:
tn, a1o