AGRICULTURAL ECONOMICS 



to the various parts of the United States, where 

 wheat is not produced in sufficient quantities to 

 supply the demand. But after all of the deficit 

 areas of the United States are supplied, a large 

 surplus still remains, which is sent abroad. 



The price of wheat in any primary market will 

 equal the price in Liverpool minus the charges 

 made for putting the wheat on the Liverpool mar- 

 ket. The local price at any point in the surplus- 

 producing regions will equal the price at the near- 

 est primary market minus the charges incident to 

 putting the wheat on that market. The local 

 price of wheat or its products at any point where 

 less is produced than is consumed will equal the 

 price in the nearest primary market plus the charges 

 made for bringing the wheat or wheat product 

 from that market. The charges made for trans- 

 porting and handling the grain have been spoken 

 of, rather than the cost of transporting and hand- 

 ling the grain, for the reason that it is not cer- 

 tain that the charges are exactly the same as the 

 costs to the transportation companies and the 

 wheat merchants, and yet if the companies and the 

 merchants are able to charge more than sufficient 

 to pay all costs this becomes as important in de- 

 termining the price as if it actually cost the com- 

 pany more to give the services. 



The circumstances are somewhat different in 

 the case of maize. The United States is the prin- 

 cipal maize producing country, and nearly the 

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