THE PRICE OP WHEAT 159 



general trend from 1800 showed a rapidly falling 

 tendency until the ''thirties," after which the average 

 annual price was fairly stable. 



For the purposes of instituting a comparison between 

 English and New Zealand prices, a more intensive study 

 of price movements from 1860 will be made. 



At the close of the decade ending 1859, conditions had 

 once more become normal after the disturbance caused 

 by the Crimean War. In 1859 the price was 5s. 6d. 

 per bushel, and conditions seemed to point to a falling 

 tendency, but several circumstances postponed this 

 tendency for almost 20 years. 



(a) The Period 1860-75. Rising Prices. The decade 

 commencing in 1860 was a stormy one for the World, 

 a number of minor European Wars, the American Civil 

 War (1861-5), and the War between Austria and 

 Prussia occurring in this period. The result of these 

 disturbances was another series of price fluctuations, the 

 average for the decade being 6s. 6d., and the trend rising 

 slightly until the middle of the " seventies. " During 

 the early " seventies" the wheat market was again 

 disturbed by war. The Franco-Prussian War of 1870-1 

 caused a rise in price with its subsequent reaction, the 

 price in 1871 having risen to 7s. Id., and falling after 

 1873 to 5s. 7d. in 1875. 



Over this period from 1860-75 the price of wheat 

 showed a general rising tendency, maintaining the slight 

 rise which had set in in the early " fifties." This rise 

 was partly the result of the diminution in supplies 

 caused by a series of wars and partly the result of the 

 influence caused on the general level of prices by the 

 increased supplies of gold. From 1849 to 1873 prices 

 rose from 64 to 80 according to Jevons's figures. Prof. 

 Irving Fisher assigns the increase in gold production 

 resulting from Californian and Australian gold dis- 

 coveries and the rapid development of banking as the 



