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sphere that are as yet by no means exploited. The wheat areas of 

 Argentina, still virgin soil, are represented to be enormous. Providence 

 seems to have made it possible to grow wheat wherever civilized man 

 may reside. In the cold and icy regions of the north; in all temper- 

 ate zones, and in the sands and heat of India and South America 

 wherever civilized man may go, he may plow, and sow, and reap 

 wheat. 



And after all is said, the depressing fact remains that the market for 

 export wheat from any country is extremely circumscribed. The wheat- 

 growing countries are contending chiefly for the limited market of Great 

 Britain for the fluctuating surplus they may happen to have. Nearly 

 all the wheat-growing countries of the globe produce enough for home 

 consumption, and this must always limit the export market. With 

 this limited market and with quick transportation to move any sur- 

 plus to this one center of consumption, it is easy to see how soon the 

 market may be depressed by over-supply or held down by sharp com- 

 petition. It is entirely unlike the case of meat products — for example, 

 pork — that may be diverted to many markets; or of cotton, that is 

 circumscribed by conditions found in but few countries; or of tea, and 

 coffee, and tobacco, and rice, and many articles that may be named. 



The export of cheap raw food products to great distances never added 

 wealth to any country, and never can. Commerce is out of joint when 

 any civilized people anywhere on the globe can profitably send 15,000 

 miles for breadstuff's. There is an artificial inequality somewhere that 

 must adjust itself when such a thing is possible. Great canals, great 

 steamships, and great railroad systems are rapidly equalizing the cost 

 of transportation. The immense reserves that were formerly carried 

 over have disappeared and are no longer necessary. Food products 

 follow the law of other merchandise, and only move when and where 

 wanted. The retail merchant no longer buys a stock of goods for a year 

 or half year; he buys from day to day, and does not even go to the 

 centers of trade to make his purchases. Largely so is it now with wheat. 

 Liverpool can reach out in many directions with certainty for England's 

 required supply 



Increased transportation facilities have, in my judgment, done more 

 to make low prices for wheat than all other influences combined. And 

 wheat will follow the law of competition, and take a value measured 

 largely by the cost of labor where produced. 



If wheat areas exist where cheap labor exists, and I think it demon- 

 strable that they are coexistent, sufficient to supply the world's defi- 

 ciency or demand, then all export wheat must meet the competition of 

 this cheap labor or not enter the market. 



Furthermore, to cheap labor are being added modern appliances for 

 cultivating and for harvesting, and this will still further handicap the 

 well-paid labor of America. 



East of the Rocky Mountains in the United States the farmer's sur- 

 plus is about 20 per cent of the total product, and this in a few States. 

 His home market takes about 80 per cent. The farmers may easily 

 change to some other product and grow 20 per cent less wheat. 



With us it is different. W T e export about 40 per cent — Mr. Davis 

 says 50 per cent — from the Pacific Coast, and it follows that we cannot 

 afford to ship this large percentage at a loss, especially as the price for 



