The Washington herald., 1910-06-12
SIGNIFICANT WHEAT FIGURES.

America. $3.50. 1909 $3.50. 53z GOO OGd
.marica. I90s..... ee5,ooo,e0O
America. ...... 1897 ...,. 034,000,0OO
export. Year. Bushels.
America. 1DOD. .. 169, 005, OOo
America. $500. 1905. -. 204,OO0,Oe0
Month. - Cents.
sisF ..''''.''s..'..s... &o1s
SaIy :, ...'....' ......-.-.-.-----. 1874
september. :..-......- lSA
Present prices to cents above the
export basis.
/ The foregoing figures show why wheat
prices have fallen IN the past two weeks.
and 10 what extent Patten, Waterman.
and other spectators were false profits
OF the situation. The simple truth is that
Russia, Argentina, Australia and India
have wrested from the United States its
supremacy in the worlds great wheat
export trade and are feeding hungry
/ Europe with utter disregard OF what
America may or may not do.
| At the end OF Nay il was discovered.
/ 10 the dismay of the American speeula-
tors, that all domestic reserves were re-
/ plenished, and that stocks Of -four at all
the principal trading centers OF the world
were such as practically TO demoralize
the market
Specializing on the Result.
7 Much interest and speculation has re-
suited from the situation. and experts
bave been figuring at what level wheat
prices would become stable for the sum
mer months The conclusion reached is
that the price of wheat from now on, in
view Of the splendid outlook for the crop
in all corners Of the world. must be
placed at the export level" That means
for this country that the price must be
governed by what American wheat viii
bring In foreign consuming centers IN the
face OF the world competition which Is IN
fun force.
The most potent influence affecting the
speculative market these days is the price
at Liverpool. 1t is said that the specu-
Iators In Chicago and at other points scan
the Liverpool cables before they read the
weather bulletins and the crop estimates
from various parts OF the producing area
II Is as certain as can be that for the
balsnee OF the year the price OF wheat
must be set In Liverpool That means
the price VIII be governed by what the
English can buy wheat for IL the worlds
market whether grown IN America. Rus
STA, Argentina, India, or Australia.
Can No Longer Set Prices.
The figures herewith tabulated show that
neither the American trader nor the
American farmer can hold aloof and die
tate prices TO the rest Of the world They
win both be ignored and lost in the shut
lie. for under the record breaking crops
Of wheat promised this year there will
be no such thing as America, including
the United States and Canada, taking the
lead in the grain expert Of the world
The wheat situation viii largely affect
prices OF other commodities. II will fig
ure IN the traffic returns OF railroads, and
VIII affect the stock market here and IN
Europe. 1t will mean a lower scale OF
prices than have prevailed during the
past year in all the principal lines OF
production.
Cotton for the time being may stem the
tide, because the last crop was short. and
the manufacturers have been living from
hand to mouth during the winter ana
spring months. Adjustment can come in
that direction only with the new crop.
for the world is yet dependent upon the
United States for nearly 70 per cent OF
It's raw cotton.
While the United States has been ignor-
ing the foreign markets. or rather the
foreign markets have been ignoring the
United States. a great change has come
about. and the United States must now
take second place as a wheat producing
country. Russia last year produced the
enormous total of 7S5. 000O00 bushels the
largest crop ever raised by any single
country, and exceeding that Of the United
States by 100000 bushels.
When it is considered that Russia also
produced a b0untiful rye crop, the chief
staple for domestic consumption. II viii
be seen that every extra busheI of rye
added a bushel OF wheat TO her export
a0le surplus. Hence Russia has been ana
is stu able TO make up any deficiency
caused by the omission OF the United
states TO participate in the worlds mar
kets.
ECrop prospects the world over nsaln
presage a record bre Sing yield. Russia.
stimulated by her last years success
has redoubled her efforts to produce a /
large crop and the prospects are at pres
ent that she VIII succeed. Argentina. |
India and Australia are also progressing
under favorable circumstances. while /
Canada is again expanding her acreag &c
very materially
The Export Basis.
Thus. the export basis is assuming that
the United States forced to an export /
level by conditions at home. she will i'm
mediately be brought face to face with /
Russian competition 10 an extent never
known before. for Russia gradually re- 1
duceS her prices as circumstances compel
her 10 hold her market
So great has been the pressure that the
Russian bankers have become alarmed |
at probable decline in values and have
forced their borrowers TO sell their wbeat
at once The prospects for the new crop
are such that the railroads have nIaced /
orders for 1000 new cars to move II.
Consequently, If United States wheat is
forced TO seek market abroad 1t win I