The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-08-26
WHEAT,

-
In the matter Of production the
wheat crop Of the United States this
year is abnormally large says The
Minneapolis Tribune. BY the un-
fortunate turn Of events in Europe tho
consumptiVe demand for this immense
crop is to be abnormal also.
Let us look at the wheat situation
calmly n sensibly. But a month age
our surplus doomed up so large that
a drastic readjustment of prices was
we'll under way to a lower level. It
was the size of the surplus, we were
told, that was making this i~nevitable.
If. 1t may now be asked, our crop BY
its volume was to be sold on the basis
Of the international market when CON
ditions pointed to the necessity of put
ting it on the bargain table, why
should this prospect Of a marked ex-
p~ansion in the demand hat suggests
the easy absorption Of this great =
plus not result in a much higher price
level? If the law Of supply and de
mand worked n way, the farmers Of
the country would like to know why
it will not work the other way-and
they are rather disposed to believe that
it will.
The European situation was admit
tedly strong long before war was, at
least. lin the air" Even the Washing
ton administration pointed out to the
country some weeks ago, tina while the
wheat crop Of the United States was
large, the domestic consumer would,
probably, be disappointed in expecta-
ton Of cheap wheat because of the
great shortage abroad. A partisan
spirit might interpret this as a subtle
salving Of both the farmer and the
consumer, but 1t was true, neverthe-
less, and it is working out. Statistics
are now becoming available from
European grain trade authorities
emphasizing the greater dependency Of
Europe on North America for supplies.
and provide the answer of Europe's
liberal purchases last spring and early
summer, which were estimated at the
time ocean commerce came to a stand
still around 100, 600, 900 bushels.
The partial correction Of the ex-
port situation has had a stimulating
effect on wheat prices. Clearances
from the s%eaboard were liberal last
week, and as there are liberal accumu-
lations still to be shipped the present
week would see even a larger move
ment. The very magnitude of the
amount of wheat that may go out in
the next week or two. should old con-
tracts be carried out or new ones made
to take the place of the old, would,
perhaps, make the immediate position
Of importers easy. The world, how
ever, does not do business on a twenty
four hour basis and forward require
ments must be anticipated, especially
under the severe conditions that exist
in the chief importing countries TO-
day,
1T is to be pointed out to the north
western farmer that current prices are
so much higher than could have pos
sibly been expected a month or two
ago that even though wheat sells very
much higher the initial marketing of
his wheat will be on an attractive
basis. Until the machinery Of inter-
national distribution, nevertheless, Is
in good working order; that is the
necessary transportation is available
and the foreign exchange market is
adequate to finance the bills, conserva-
tive marketing of grain will minimize
congestion in the domestic terminals
and make the task of handling and
distributing the crops easier"