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production of the world for the nine years commencing in 1884 has 

 been 2,192,138,500 bushels. 



But the table submitted by the Senate committee shows that the 

 product of 1884 was nearly 100,000,000 bushels more than this average, 

 and was 36,209,000 bushels larger than the crop of 1892, and although the 

 population of the wheat-using countries had greatly increased in the 

 interval, the export price in 1884 was more than in 1892. A compar- 

 ison is made between the first five years of the decade and the last four 

 years with like result, and the conclusion is reached that the theory of 

 over-production does not account for the decline in the price of Ameri- 

 can wheat. The fact is, there has been a decline in the value of almost 

 all agricultural products. 



A table of prices of cereals in the United States from 1868 to 1892 

 shows an average decline for the whole period, of wheat 35 per cent, corn 

 32 per cent, rye 32 per cent, oats 30 per cent, barley 40 per cent, or a 

 general average of 35 per cent. 



Live stock have declined nearly as much. 



As to the effect of demonetizing silver, the Senate report shows that 

 while the speculator makes 33| per cent in exchanging his gold, paid 

 him for his India wheat sold in Liverpool, for silver with which to buy 

 more wheat in India, still it is wheat that competes with wheat, and 

 not wheat with silver; and it is this competition of wheat with wheat 

 that hurts. Nevertheless, the report shows quite' clearly that silver 

 demonetization has seriously affected all agricultural products. The 

 argument is too abstruse and prolix for this paper. 



An agricultural product that has no export market is necessarily de- 

 pressed by over-production. While the home market is always the best 

 when consumption and production are equalized, the same law governs 

 in both the home and foreign markets, and the law is simply the law of 

 competition. 



It is this competition, which we have to meet, and not over-produc- 

 tion, that has depressed prices. Can we in California meet the competi- 

 tion? 



The average annual demand for wheat in the "world's market," or 

 the requisites of the nations that buy, is something less than 10 per 

 cent of the total production, or about 203,000,000 bushels, including 

 wheat flour. 



Practically all the States of Europe, except the United Kingdom of 

 Great Britain, France occasionally, and Belguim, are supplied by them- 

 selves. A very large proportion of our wheat exports goes to Great Brit- 

 ain, and more than a dozen wheat-producing countries compete with 

 us for that market. 



A notable feature of our wheat exportations from the United States is 

 the fluctuations in different years. I have examined a table prepared 

 by the Treasury Department, and found in the Statistical Abstract for 

 1893, of exports to all countries from the United States since 1870. 



Omitting less than 100,000 bushels in my figures, we exported of 

 wheat and wheat flour reduced to wheat: 



In 1889 92,000,000 bushels. 



In 1890. 115,000,000 bushels. 



In 1891 111,000,000 bushels. 



In 1892 233,000,000 bushels. 



In 1893 200,000,000 bushels. 



