THE PRICE OF WHEAT 



177 



Zealand prices to remain relatively high owing to scarcity 

 of local supplies over a period of two or three years. 



In the following table the prices of English and New 

 Zealand wheat per bushel, in years of low production 

 in New Zealand, are compared. 



TABLE XXV. 



AVEEAGB ANNUAL PEICES OF ENGLISH AND 

 NEW ZEALAND WHEAT. 



Year. 



1886 

 1895 

 1897 

 1898 

 1902 

 1907 

 1908 

 1913 

 1914 



On the other hand, in times of plenty in our local 

 supply, English prices have an appreciable influence on 

 the level of prices in New Zealand. An extremely prolific 

 yield, such as there was in 1899 when some 13,000,000 

 bushels were produced, cannot depress prices below a 

 certain point, irrespective of foreign conditions. There 

 is a limit below which, under normal conditions, price 

 cannot fall. This limit is set by the cost of shipping 

 wheat to the foreign market England, so far as we are 

 concerned. 



The difference between the English price and the 

 New Zealand price cannot exceed this amount over long 

 periods. Obviously, if price in New Zealand falls below 

 this limit then wheat will be exported to England. 

 Thus, in 1899 the New Zealand price was 2s. 6|d. per 

 bushel and the English price was 3s. 2^d. per bushel, a 

 difference of 7f d. The cost of sending a bushel of wheat 

 to London is about 8d., and if we compare prices in 



