Economic and financial section > Agricultural crisis > Volume 1

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alw?ys some countries where grain is being harvested and threshed The
distribution of harvests over the entire year stabilises the grain trade by constantlv
placing fresh crops or accumulated stocks at its disposal. ^ y
•+ u ^USt ^e/10re. t^ie war’ ^^e world production of wheat exceeded one milliard quintals •
year^earher7 mCreased' In twice as much wheat was harvested as twenty
In spite of the enormous increase in production, prices continued to rise. The
progressive drop and the prolonged low level of prices which in the last quarter of the
nineteenth century had followed a period of rising prices — i.e. 1850-1875 had in
turn been succeeded at the beginning of the twentieth century by a fresh rise. In 1913
the average prices per quintal of wheat in the shipping ports of the United States of
America was 18.20 francs, as against 12.75 francs in 1892 ; in Liverpool it was 17 60
francs as against 14.60 francs (gold francs). P °i 11 was 1/‘bU
The demand had increased even more rapidly than the crops. The increase in
consumption was due, not only to the growth of the population, but also to an advance
in wealth and prosperity which resulted in the neglect of the inferior cereals
Economists raised the question whether the world would be able to sunnlv the
crops necessary to meet this increased demand. In general thev considered7fhat
supplies might prove insufficient in the future, and they arrived at pess^mTstic conclu
to°take^ace.Were ^ 3 ^ 3nd c°™d-able incre^ ^ p^duction
,, The imports into central and western Europe continued to increase About half
the supplies came from eastern Europe and the other half from the United States of
America, the Argentine, Canada and Australia. Two countrieThad recentlv become
large exporters — i.e., the Argentine and Canada. leeentiy hecome
m ?ue ?'itbre?!i: of ™r. uPset the Production of and trade in wheat. It caused Russia
w ich had been the principal exporter before 1914, to disappear from the list of exnortino
countries. It brought about a considerable decrease in sowing and an enormous defich
in crops in Europe. It stimulated the extra-European producers At”d bv the
prices, which had risen to three times their previous level, the ovemea farmers cleared
In aSfeT vlarf the land aimkdSerdXhnC?d-them m°ney: fac.tories supplied them machinery.
ageriiulUturetyyearS- ThearmisticeadidnnotCarrestthedernormous£impetust,of"mechanised
",biTs,d,:f,rArs‘^
ddiv^^ Z 7^ immcdhrtefy'after U SyStem’ ^ the Wheat Can be
standpolnt'ofEhiropean agriculture in'view of ufe veiy lowfre^ht ratesl^lhider modern