THE PRICE OF WHEAT 179 



relative ranges and frequency of the fluctuations in each 

 case. Throughout these are both more frequent and more 

 severe in New Zealand prices than in English prices. 

 Earlier in this chapter reference was made to this aspect 

 of the subject, and it was demonstrated that England's 

 sources of supply were so great and so varying in con- 

 ditions of production, that in normal times supply was 

 fairly constant. The comparison between New Zealand 

 and English prices further confirms this conclusion. It 

 is true that English wheat exhibited great fluctuations in 

 price in the earlier years of our period, but these can 

 be explained by a variety of circumstances which already 

 have been indicated, and attention may be drawn to the 

 fact that the Corn Laws were repealed so recently before 

 the commencement of the period of our study as 1846. 

 This sudden opening up of English markets to foreign 

 wheat, while it gave a great stimulus to progress in 

 foreign fields, could not hope to develop them on a 

 sufficiently large scale to render supplies constant. 

 Consequently, a bad harvest in the United States or 

 Russia would at once be reflected in a rise in the price 

 of wheat in England. Since 1880 the English price 

 curve, however, is free from great fluctuations, though 

 changes of minor importance are not infrequent. The 

 same cannot be said of the New Zealand price curve, 

 which exhibits at frequent intervals violent fluctuations 

 throughout almost its whole course. It must be noted, 

 however, that during the " eighties " the extent of the 

 fluctuations diminish, but their frequency does not. An 

 explanation at once suggests itself. Wheat production 

 was at its zenith during the ' ' eighties, ' 9 but has recently 

 declined, the area under wheat showing a strong decrease. 

 Of recent years the fluctuations in price have increased 

 in severity, and consequently the conclusion can be 

 drawn that price fluctuation is greater when the area 

 of production is decreased. 



