THE PRICE OF WHEAT 175 



slightly above 5J million bushels, whereas the amount 

 required for home consumption was more than 6J million 

 bushels. Obviously, for consumption to follow its normal 

 course importation must of necessity be resorted to. But 

 the import statistics show an average importation of 

 only some 30,000 bushels for the two years. In 1907 

 Australia had experienced a bad harvest, only about 

 42,000,000 bushels being produced, whereas in 1913 

 production exceeded 100,000,000 bushels. Therefore, 

 with no supplies to make up for the local deficiency, 

 scarcity had to be contended with, and consequently 

 prices rose, 6s. per bushel being reached in November, 

 1907. 



The rise in the price of wheat has been greater than 

 the rise in the general level of prices in this period. 

 In 1893 general prices as measured by Dr. Mcllraith's 

 index number were 93, in 1894 the index number for 

 wheat prices was 73, but in 1912 both stood at 107, while 

 in 1914 the former had risen further to 122, and the 

 latter to 168. On the whole, the circumstances respon- 

 sible for this are to be found in decreased production 

 of wheat and consequent scarcity in supply which, 

 together with the factors operating to cause a rise in 

 prices increased gold production and more intensified 

 demand raised wheat prices relatively to most other 

 prices. 



9. English and New Zealand Prices Compared. 



A comparison between English and New Zealand wheat 

 prices at once brings into prominence the fact that there 

 is a high degree of resemblance in the general trend for 

 the two countries. The coincidence of the periodicity in 

 price movements suggests at once that causes affecting 

 English prices are not, in general, inoperative in New 

 Zealand, that our distance from the centre of the indus- 



