The Temuka Leader THURSDAY, SEPTEMBER 20, 1888. THE PRICE OF WHEAT.

Temuka Leader, Issue 1792, 20 September 1888, Page 2

The Temuka Leader THURSDAY, SEPTEMBER 20, 1888. THE PRICE OF WHEAT.

The news from Home in reference to the wheat market is glorious. New Zealand wheat is at present celling at 45s per quarter, or about 5s 7£d per bushel. A newspaper entitled The Miller states that the wheat supply this year is ten million quarters, that is eighty million bushels, below the requirements, and Mr Harris, the wheat expert, predicts an enormous rise in the price of wheat in spring. Such is the news cabled to ua, and it is, we must soy, most encouraging. There is not the slightest danger of the price coming down again for the next few years, in fact, we feel certain that it will be some time before it falls below three shillings per bushel again. Tu 1881 we prophesied that the price of wheat would go up in 1887, and we were much disappointed at finding it did not. "We admit that we were wrong in the forecast of the future we then made, but had business been conducted on honest principles we should hare been right. It will be remembered that towards the end of 1887 what is known as a " corner " was discovered in America. The object this " corner " had in view was to keep down the price of grain until the speculators interested in it had bought immense quantities of wheat, and then manipulate the markets so as to raise the price. These kept down the priee ia the beginning of 1887, but towards the end of it their tricks were discovered, and the "corner" burst. The result of the bursting of the "corner" was that immense quantities of wheat were poured into the markets, and it was this sudden deluge of it brought the price down to such a low level, aud upset all our calculations. "Only for this "corner" the price of grain would have gone up in 1887, and our predictions would have proved true. Finding that our calculations were upsetthat the price of grain still persisted in remaining very low in England, and that the merchants of this colony did not care about buying at any price—we certainly began to think that grain growing was past all hope. Still it will be remembered that on the Bth of March last we advised the farmers not to be in a great hurry to sell at such a low price as governed the market then, and those who acted on our suggestion .have every reason to feel glad of it. On the whole we have made a pretty shrewd guess at what has occurred, and it is our opinion now that the present prices will be maintained for some time.

I We do not think that any farmer ought to sell now for less than 4s per bushel. When the price at home is 5s 7£d we ought to get at least 4s here for it. And what ia more, we think farmers ought to go to work at once and put in as much wheat as they can, for without doubt the price next year will be good. The Miller says there is a deficiency of 80,000,000 bushels, and The Miller is a paper published in the interests of the buyers. It is not to the interests of buyers to cry out that the supply of what they want to buy is short, .and, therefore, it may be taken for granted that the Miller would not hare pointed this out without having good grounds for it. Taking the Miller's statement side by side with the sudden jump of 5s per quarter in the price of wheat, and the assertion of the wheat expert, who has said that the scarcity of supply will cause an enormous increase in the price, the conclusion to be arrived at is that we have reached next door to a wheat famine. If such is the case buyers will b« most desirous of securing largo supplies next year and the y«ar after, and consequently there is not the slightest danger of grain coming down so low again for some time. Our advice to farmers now is to put in as much wheat as they can, and if they do they will without doubt have their reward next year. The tide has now turned. With the price of grain will come increased confidence, and if, as we expect, " boomers " from Victoria pay us a visit after the Exhibition,

yroperous timeß are within our reach. If the "boomers" had any notion at all of coming, th«s increase in the price of wheat will induce them to do *o, for it will rise the ralue of land and bring up everything to a saleable value.

[This article has been in type for the last week, but owing to pressure on our space we were unable to publish it. Ihe grain markets remain firm, bat prices are not so high as the cablegrams of a week ago led us to expect].