HISTORY OF WHEAT PRODUCTION IN NEW ZEALAND 131 



It will be noticed that with one exception the English 

 prices are considerably above the New Zealand prices in 

 the " eighties. " The exceptional year was 1889 when 

 New Zealand prices exceeded English prices by 2d., but 

 the cause of this was that the New Zealand supply fell 

 by nearly 700,000 bushels while the exports increased 

 by 200,000 bushels, thus causing a net fall in home supply 

 of some 900,000 bushels. We notice that in a year of 

 abundant production in New Zealand when there is a 

 large exportable surplus, the local price is very much 

 lower than the English price. Such was the case in 

 1899, 1888, and 1883. 



10. Conclusion. 



The outstanding influences marring and moulding 

 the progress of wheat production in New Zealand have 

 been considered at length for the purpose of obtaining 

 suggestions as to the probable course in the future. The 

 rise of the wheat industry has been traced from the 

 11 sixties" to its culminating point in the " eighties, " 

 when many and various factors came into operation 

 tending to render the industry relatively less important. 

 At one time it was thought that the cereal would 

 ultimately form New Zealand's staple product, and 

 circumstances were certainly favourable for this. The 

 whole country waxed enthusiastic over the prospects 

 of wheat growing, so much so that as a result of 

 this, together with an ambitious borrowing policy, New 

 Zealand experienced her first and most severe land boom. 



But many factors have been found to come into 

 operation since 1880, and these were destined to cut 

 away considerably the foundations upon which the 

 production of wheat was resting. There was a period 

 of great depression and a retrenchment policy on the 

 part of the Government ; prices fell to an exceedingly low 

 level; several other producing areas, notably Canada, 



