Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1920-10-28
INVESTIGATION PROVES
SLUMP IN WHEAT PRICES
DUE TO NATURAL CAUSES
Decline Caused by Dumping Of Canadian Wheat on Amer
can Market Decrease in Foreign Buying and Other Nat
ura Causes-Careful Survey Of Situation Shows Absurd
y Of Charge made by League Leaders and Newspapers
For Political Effect

xUk i V4SA&01 AA4V~es
The following statements on th'
decline in the price Of wheat shoult
not be miscronstrued as defense
of grain gambling on boards o
trade.
The Townley press and speaker
declare that since trading in grair
futures was resumed in this coun
try in July last. that the cause o
the decline in wheat prices in NORTH
Dakota and the United States is duo
to grain gambling; also that twir
city banks have withheld credit tt
country banks in order to force
farmers to sell their wheat at sac
crifice for the benefit of the spacu
lators.
The facts disprove both of these
charges, made for political effect.
| There are several good reasons
for the slump in wheat prices since
Sept. IS, and one of the chief causes
is the decrease in foreign buying OF
our surplus. 1t is pointed out that
when the European buyers of oul
surplus grain, in January and Fcbru.
ary 1920. purposely withdrew from
the american market for time. the
price Of wheat declined, from the
high point in January to the low
point in February, about 70 cents a
bushel. This was long before trad.
! ing in grain futures had been re.
sumed in the United States.
The same cause is again noted in
operation. Grain buyers for Eur
opean governments, and foreign
dealers have again left the United
States market and little or no for.
eign buying is reported.
AS a consequence wheat and 9TH
er grains, wanted for food in Eur
ope, have since the middle of Sep
tember declined nearly as much as
In January and February last. But
now the League press and the Town
ley orators claim that the sole cause
Ffs due to grain gambling, aided by
money-squeezing bankers.
Foreigners Pay Dearly
Everyone knows that the foreign
governments have been forced to
pay enormous prices for wheat,
which prices have been tremendous
ly increased by the unfavorable
rates of money exchange. between
..
It is stated that wheat bought in the
United States for English consump-
tion has cost over $3.50 per bush ell
for French use about Sc. a bushel,
Italian about $11. even as much as
$34, in Germany, with equally high
prices In Austria and other coun-
tries whose money is at heavy dis
count compared with that OF the
United States.
Foreign buyers are seeking by
every means possible to get grain at
lower prices, going to Australis, In
dia and Argentine for wheat. and
leaving the American market alone
as long as possible. At present Eur
opean buyers have monopoly on
the purchase of our surplus wheat.
and these buyers have combined to
get grain for Europe as cheaply, as
possible.
Canadian Wheat Surplus
Another reason for the slump in
wheat is the rush of the Canadian
crop into the United States. Ac-
cording to the statistical service of
the w. Sanford Evans & Co., Winni-
peg, Canada has surplus of two
hundred million bushels of good
wheat this year. There have been
from Sept. te Oct. 8 loaded into
cars at country points and inspect
ed at Winnipeg. 66.23O,O0O bushels
and actually unloaded at Fort Will
liam and Fort Arthur 2O,191,25O
bushels. There have been shipped
out of these ports 13,416,O0O
bushels of which GIG per cent have
come to the United States. II the
above percentage continues from the
Canadian surplus of 2OO,OOO.OO
bushels, the United States win have
to absorb 120,000.0oO bushels on
top of our own surplus of 100000
900. Such dumping of wheat on
q slow market, with foreign buyers
could have no other
effect than to depress the prices in
this country.
The difference in exchange be-
tween Canada and the United States
is at least 10 cents on the dollar.
With wheat at $500 per bushel. in
United States money the Canadian
farmer selling in the United States
market, gets approximately $2.2O in
money. The Canadian
crop is good quality, is wanted by
Is raised on cheaper land
and has larger yield. The Cana
dian farmer is glad to sell it in COM
petition with the American crop.
Other Causes For Decline
There are other causes that have
led to the wheat slump besides the
above. The mills Of Minnesota and
the northwest are running on short
time. Usually at this season thev
are working three shifts, now one
third Of their capacity only is used.
The reason is that bankers and flour
buyers. who usually stock up with
flour supplies are not doing so.
Every housewife is looking for
lower prices and the public is buying
from hand to mouth. The American
mills are not grinding wheat and not
buying 1t as usual. The home de-
mand as we'll as the foreign has
slackened up, the mills have large
stocks of flour on hand unsold.
The general decline In other COM
modities 10 seen 90 In cotton, meat,
sugar, wool, leather, potatoes -
we'll 90 IN manufactured goods. Can
Il be- expected that wheat aloneswill
remain high 6nder tho S4bona eundt
Rank Lol $40 Mort Dsko4s s
" Tho NonpaftiGan Leaxus pres
ehGfKN that tho II HI @3ftYS l3aRHsl