WHEAT IN THE UNITED STATES 265 



imports needed when their home production is low 

 causes high prices. So dependent on imports are 

 the European countries that even threatened 

 shortage in home production causes sharp ad- 

 vances of the wheat market. As an illustration 

 of this the lessened production anticipated in these 

 countries as a result of the European War caused 

 in 1914 the price of wheat in the United States to 

 rise from 25 to 40 per cent, although this was a 

 year of an exceptionally large world crop. How- 

 ever, since prices rose as soon as war became im- 

 minent, part of this rise was undoubtedly due to 

 speculation. Prices remained high because of the 

 increased demand for wheat. This demand was 

 at first based on prospective future needs rather 

 than on needs actually existing. 



The armies of Europe, from the Napoleonic 

 wars of the early nineteenth century to the present 

 time, have largely depended on foreign wheat for 

 their breadstuffs. The United States now, as 

 before, is an important contributor to their 

 supply. 



The wheat exports of the United States are 

 both the grain and flour. This is the only great 

 wheat-exporting country which contributes nearly 

 as much wheat flour as wheat grain to foreign 

 commerce. 



The United States has, however, passed the 

 period of its development in which it ranked fore- 



