172 WHEAT PRODUCTION IN NEW ZEALAND 



after. The explanation of the fluctuations is found, as 

 stated above, in the increased output of gold together 

 with the interference of the gold rushes with the local 

 harvests. 



(b) 1873-94. Falling Prices. Synchronous with the 

 movement in general prices in New Zealand and through- 

 out the world during the period 1873-94, the prices of 

 wheat exhibited a steadily falling tendency. While 

 general prices fell from 164 in 1873 to 93 in 1895, a 

 similar movement is noticeable in wheat prices between 

 the years 1872 and 1894, the index number falling from 

 129 to 81. Throughout the period violent and frequent 

 fluctuations were recorded; but the general trend is a 

 marked fall, though not so great as the similar movement 

 in general prices which fell by almost one-half, the price 

 of wheat falling by a little more than one-third. 



A sudden rise in 1877 gives to the graph an outstand- 

 ing peak for the period. The index number rose from 

 126 in 1876 to 176 in the following year, and a similar 

 movement is noticeable in English prices, due probably 

 in part to the Russo-Turkish War. But the rise is 

 greater in New Zealand, and we must look to local 

 conditions for the explanation. During the years 1873-5 

 the price of wheat had shown a falling tendency, while 

 for the same years wool had remained comparatively 

 stable at the high average price of 14d. per pound. That 

 farmers should have turned their attention to pastoral 

 industries so far as possible for a time is not surprising, 

 and consequently we find that the area under wheat 

 fell in 1876 to 90,804 acres from 105,673 acres in the 

 previous year. A high yield of 31-5 bushels per acre 

 relieved the situation to a small degree; but price rose 

 slightly, and the shortage experienced before next 

 harvest raised the price in the beginning of 1877 very 

 considerably. English wheat rose then, presumably on 

 account of the War, and, as a high price could be 



