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 
