Department of Commerce [pp. 450-460]

COMMERCE.
likely be powerless so restrain this mode of operations, just as Congress,
during the late war, was powerless to suppress speculation in gold, and how ever obnoxious it may be to the great mass of the people, it will doubtless
be continued so long as we have a daily and hourly fluctuating currency.
With regard to the probable demand from Europe, the same able paper
says:
The Wheat crop of England turns out-to be much shorter than was at first
supposed, and, with their usual forecast, the authorities have taken measures to make good the deficiency from Foreign sources. A late London
paper states that orders had already been been transmitted to Russia, Prussia, France and the United States, to purchase eight million bushels of
Wheat, and concludes that Wheat in England must be a dear commodity
during the coming winter. France, owing to the limited quantity of wheat
produced this season compared with the wants of the people, will not be in
a position to forward additional supplies of Grain, unless in the way of reexports obtained from other sources-for her own crop is so short as to necessitate her to compete with England in foreign markets. Hence, the two
great sources of supply will be Russia and the United States, with moderate
supples possibly from Chile and Australia-the last mentioned country having been favored with an excellent crop, as may be inferred from the fact
that Wheat was selling at last accounts as low as 4s. 6d. per bushel.
It has been intimated that a considerable portion of the late purchases of
Wheat in our market were made through English operators for French account, but we are not prepared to say how much truth there may be in this.
The fact that the late rise in the price of the article in England is partly ascribed to French puchasers there, however, would seem to give color to
the rumor. The average annual production of Wheat in France is not far
from 35,000,000 qrs., against some 15,000,000 qrs. in Great Britain; but these
figures, it would seem, are considerably reduced this year by deficient crops,
to which must be added the exhaustion of old stocks. We have met with
no authentic data as to the actual deficiency in the Wheat supplies of
England and France, but that it is large may be inferred from the fact that
prices in England have lately risen to the highest point touched since the
Crimean war.
That the food deficiencies of England and France must inure greatly to
the advantage of this country, is already apparent in the large quantities of
Flour and WXheat now going forward to Great Britain, thus contributing materially to the reduction of the trade balance against us, and affording profitable employment for our shipping. During the first eight months of the present year, Great Britain imported 21,031,647 cwts. of Wheat, against 15,529,299
cwts. in the corresponding period in 1866, and 11,565,473 cwts. in 1865; and
of Flour, 2,267,532 cwts., against 3,637,648 cwts in the corresponding period
of 1866, and 2,126,704 cwts. in 1865. Russia and Prussia take the lead in
Wheat, and France in Flour. The supplies of Wheat drawn from France
were only 531,976 cwts., against 3,305,024 cwts. same time last year. The
supplies from the United States have largely increased, being in the first
eight months 1,738,945 cwts. Wheat, a,gainst only 345,750 cwts. same last
year; and 208,704 cwts. Flour against 193,051 cwts. the corresponding months
in 1866. But the succeeding four months will show a far greater gain.
Under ordinary circumstances, the necessity of making such heavy purchases of food in foreign markets, as France and England will be compelled
to make this season, would be apt to create serious disturbance in the money
markets of those countries. But with the present enormous reserves of the
banks of those countries, no serious derangement of the finances is at all
probable. In all probability, both England and France will be compelled
to ship some of their gold to the continent, but the trade relations between
those countries and the United States is such that it is hardly probable that
foreign gold will find its way to our shores in payment of Grain.
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