The Washington herald., 1915-01-14
The Demand for Wheat.


In an article printed in these columns only a
few days ago attention drawn to the con-
tinucd rise in the price of wheat in our markets,
caused by the voracious buying of the commodity
for foreign consumption; and it was stated that
the strong indications were that by the first of
April the entire exportable surplus of wheat in
this country would be gone, leaving Our own peo-
pie to depend upon farm reserves and invisible
stores of grain in order to feed themselves until
the next harvest. But exports of wheat are each
week mounting to high records, and if they
continue at the present rate our eXportable sur
plus is likely to be exhausted not by the first of
April, but in the next six weeks.
In the famous Letter corner in 1893, wheat
sold at $I85 bushel; but this only meant a con-
test in the speculative grain market and it had
little or no influence upon the price of flour. In
Chicago the other day the best grades of -four
advanced S cents a barrel Second qualities of
-four that sold for $500 last week quoted at
80. Flours that sold in August for $500 a
barrel arc quoted in Chicago at Sis barrel An
advance in the price OF bread itself cannot be long
deferred If these conditions hold; and so far as
we can sec these conditions will hold
Responsibility for all this is due to rather
curious combination of circumstances. The Ar
gcntinc crop of wheat is comparatively small, and
Europe arc high because of the war. Therefore,
the war buying" of wheat for European account
converges upon the American market and
have recently pointed out, the buying in
cludcs not only purchases Of wheat for the ac-
count OF countries actually engaged in war, but
for countries like Italy, Norway. and Sweden,
which desirous OF adding to their supply of
toodstufs in order to be prepared against possible
war contingencies. The net result OF it all is, OF
course, the pouring of a golden flood into the lap
OF American farmers. Lucky it is for them and
for the American people that last year our crops
were unusually abundant and that have more
wheat to spare than at any time for nearly twenty
years.
This former time was the Letter year to which
VIC have before alluded; and curiousy enough all
historians and economists agree in stating that
the tcn-ycar period OF glowing American prosper
ity which followed dated from the great rise in
the price of wheat with which Mr. Letters name
will ever be associated. Then, as now the wheat
lands OF the United States produced a bumper
crop. Then, as now, there unprecedented
foreign demand for the commodity-due, how
ever, not to a foreign war. but to reduced har-
vests. And then. as now, the influx of money in
the agricultural districts OF the West produced a
radical change in political conditions and brought
financial and business prosperity in its train.
We are not predicting that the same business
results will be witnessed on the present occasion
that followed the year 1898. But up to the pres
ent the analogy has been close, and it is certainly
reasonable to think that the farmers will expcnd
in the usual manner the very large amount OF
money that they have received for their grain. 1t
IS to be hoped that the European demand for
wheat will not be pressed to the point of pro-
Iucng a scarcity OF food in country. 1t
5 also to be remembered that while the Western
armer is being enriched by the war; the Southern
,lanter has been temporarily impoverished by it. |
But the South's 7ooo,ooo-bale cotton crop must
&c moved at some time or other Already the de-
nand for cotton is larger than it was and
oorts of that staple are increasing every day. We
hould not be surprised if at time not exceed
ngly remote the Southern planter will be receiv-
ng congratulations as we'll as the Western farmer.