THE PRICE OF WHEAT 171 



magnitude. The graph showing the decennial averages 

 registers a rising tendency, but the upward movement is 

 so small as to be almost insignificant. During the early 

 "sixties" very high prices prevailed, the index number 

 being 254 in 1864. In these years gold was being 

 produced at a rapidly Increasing rate, and agriculture 

 was stagnant on account of the rush to gold-mining. 

 The exports of wheat, which had in the middle "fifties" 

 reached almost 100,000 bushels, fell to 12,000 bushels in 

 1860, while in 1863 and 1864 no exports were made at 

 all, there being an importation of 294,000 bushels and 

 164,000 bushels respectively. After 1867 the gold 

 production gradually declined, but rose rapidly in 1871. 

 and maintained a high annual average until 1874. 

 Corresponding to this there was a decrease in price in 

 the late "sixties," with rising prices again in the early 

 years of the following decade. Thus the influence 

 exerted by the gold discoveries was considerable. The 

 reasons for this are two-fold. In the first place increased 

 output of gold means an increase in the circulating 

 media, while, secondly, a gold rush is usually accom- 

 panied by economic disturbances. The latter factor 

 operated with very considerable importance because of 

 the efflux of labour from farming to the gold mines and 

 the consequent stagnation in agriculture. 



The high prices of the years ' 1860-6, due to these two 

 causes, were instrumental in rendering the period one 

 of stationary or almost falling prices, but the rise of 

 the early "seventies" was just sufficient to counteract 

 this tendency. The most marked feature of the period 

 was the great fluctuations from year to year. In 1863 

 the price index number was 163, and it rose suddenly 

 in the following year to 254, falling again in two years 

 to 150. The following year witnessed a further fall to 

 101, while another great rise to 178 occurred in 1868, 

 followed once more by a sudden fall to 124 the year 



