Excerpt from The Merchants' Magazine, and Commercial Review, Vol. 63: From July to December, Inclusive, 1870

From the foregoing it can be readily seen that the price of gold and the amount of stocks have not regulated the price of Wheat. The highest figure of the year for Wheat was reached August 16, 1869. Gold was but 134 with No. 1 Spring 81 70 per bushel at that time. The quantity in sight was below three million bushels, with an active speculation in Liverpool, where No. 2 Spring advanced to 100. Per ceutal. At the time of the greatest accumulation of stock (the first week in January 1870) No. 1 Spring was worth $1 28 in currency, with gold at 122, showing that then, in spite of all the adverse influences which a close money market and vast accumulations in our own and the British markets, (aggregating bushels at the commencement of the current calendar year), the price of the best spring wheat remained above a dollar per bushel in gold. The only occasion during the period in question when it declined below that figure was on Black Friday, in September, 187 0. Then there was scarcely enough spring wheat in market to establish prices, the money market was practically closed, and sterling exchange declined almost as rapidly as gold advanced. At the lowest rate of premium for gold, March 9th, No. 1 Spring sold at $1 18. The lowest price, 81 14, was made about the middle of April, when the navigation of the Upper Lakes had been resumed, and it appeared that the vast stocks held West were to be precipitated upon this market, with no adequate demand to meet them, as Liverpool accounts continued dull; at the same time, flour was being pressed for sale, holders fearing lest it should sour on their hands, and hence extreme low prices were accepted. Gold then averaged the same as No. 1 wheat, 114, and the quantity of wheat in sight had been reduced only about two million bushels during more than two months, standing April 9, at bushels.

In the spring of 1869, the fair stocks, greatly increased receipts at the Lake Ports, and the favorable crop accounts from all quarters, led to the anticipation of lower rates. But the market was met by an active export demand, so that there was, with some fluctuations, a gradual improvement in gold prices till Aug. 16, when No. 1 Spring sold at 31 29, in gold. After that a downward movement began, which continued almost without interruption till the middle of April, 1870, at which time No. 1 Spring Wheat had declined to $1 in gold. At this point the export movement set in again and about a month earlier than last spring; Opening at $1 a bushel, in gold, for No. 1 Spring, against 81 08 on the 21st of May, 1869, it has already advanced to $1 24, or within five cents of the highest gold price in August, 1869.

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