Year.United Kingdom
Annual Imports.
Wheat and Flour.
Qrs.		Ocean Freight
to United
ingdom.
Per qr.		Aggregate Cost
of Carriage.
s.   d.£
1872 9,469,0006   53,040,000
188214,850,0007   45,420,000
189416,229,0003   93,041,000
189525,197,0003   03,825,000
189623,431,0002   93,258,000
190023,196,0003   64,036,000

In passing, it may be pointed out that for a period of four years, from 1871 to 1874, the price of wheat averaged 56s. per quarter (or 7s. per bushel), with the charge for ocean carriage at 6s. 5d. per quarter, whereas in 1901 wheat was sold in England at 28s. (or 3s. 6d. per bushel), and the charge for ocean carriage was 3s. 6d. per quarter; the ocean transport companies carried eight bushels of wheat across the seas in 1901 for the value of one bushel, or exactly at the same ratio as in 1872.

The contrast between the case of railway freight and ocean freight is to be explained by the greater length of the present ocean voyage, which now extends to 10,000 miles in the case of Europe’s importation of white wheat from the Pacific Coast of the United States and Australia, in contrast with the short voyage from the Black Sea or across the English Channel or German Ocean. It is largely due to the overlooking of this phase of the question that an American statistician has fallen into the error of stating that about 16s. per quarter of the fall in the price of wheat, which happened between 1880 and 1894, is attributable to the lessened cost of transport.

Wheat Prices

The following figures show the fluctuations from year to year of English wheat, chiefly according to a record published by Mr T. Smith, Melford, the period covered being from 1656 to 1905:

Price per Quarter

s.   d. s.   d. s.   d. s.   d. s.   d.
1656 38   2 1706 23   1 1756 40   1 1806 79   1 1856 69   2
1657 41   5 1707 25   4 1757 53   4 1807 75   4 1857 56   4
1658 57   9 1708 36   10 1758 44   5 1808 84   4 1858 44   2
1659 58   8 1709 69   9 1759 35   3 1809 97   4 1859 43   9
1660 50   2 1710 69   4 1760 32   5 1810 106   5 1860 53   3
1661 62   2 1711 48   0 1761 26   9 1811 95   3 1861 55   4
1662 65   9 1712 41   2 1762 34   8 1812 126   6 1862 55   5
1663 50   8 1713 45   4 1763 36   1 1813 109   9 1863 44   9
1664 36   0 1714 44   9 1764 41   5 1814 74   4 1864 40   2
1665 43   10 1715 38   2 1765 48   0 1815 65   7 1865 41   10
1666 32   0 1716 42   8 1766 43   1 1816 78   6 1866 49   11
1667 32   0 1717 40   7 1767 57   4 1817 96   11 1867 64   5
1668 35   6 1718 34   6 1768 53   9 1818 86   3 1868 63   9
1669 39   5 1719 31   1 1769 40   7 1819 74   6 1869 48   2
1670 37   0 1720 32   10 1770 43   6 1820 67   10 1870 46   11
1671 37   4 1721 33   4 1771 47   2 1821 56   1 1871 56   8
1672 36   5 1722 32   0 1772 50   8 1822 44   7 1872 57   0
1673 41   5 1723 30   10 1773 51   0 1823 53   4 1873 58   8
1674 61   0 1724 32   10 1774 52   8 1824 63   11 1874 55   9
1675 57   5 1725 43   1 1775 48   4 1825 68   6 1875 45   2
1676 33   9 1726 40   10 1776 38   2 1826 58   8 1876 46   2
1677 37   4 1727 37   4 1777 45   6 1827 60   6 1877 56   9
1678 52   5 1728 48   5 1778 42   0 1828 60   5 1878 46   5
1679 53   4 1729 41   7 1779 33   8 1829 66   3 1879 43   10
1680 40   0 1730 32   5 1780 35   8 1830 64   3 1880 44   4
1681 41   5 1731 29   2 1781 44   8 1831 66   4 1881 45   4
1682 39   1 1732 23   8 1782 47   10 1832 58   8 1882 45   1
1683 35   6 1733 25   2 1783 52   8 1833 52   11 1883 41   7
1684 39   1 1734 34   6 1784 48   10 1834 46   2 1884 35   8
1685 41   5 1735 38   2 1785 51   10 1835 49   4 1885 32   10
1686 30   2 1736 35   10 1786 38   10 1836 48   6 1886 31   0
1687 22   4 1737 33   9 1787 41   2 1837 55   0 1887 32   6
1688 40   10 1738 31   6 1788 45   0 1838 64   7 1888 31   10
1689 26   8 1739 34   2 1789 51   2 1839 70   8 1889 29   9
1690 30   9 1740 45   1 1790 54   9 1840 66   4 1890 31   11
1691 30   2 1741 41   5 1791 48   7 1841 64   4 1891 37   0
1692 41   5 1742 30   2 1792 43   0 1842 57   3 1892 30   3
1693 60   1 1743 22   1 1793 49   3 1843 50   1 1893 26   4
1694 56   10 1744 22   1 1794 52   3 1844 51   3 1894 22   10
1695 47   1 1745 24   5 1795 75   2 1845 50   10 1895 23   1
1696 63   1 1746 34   8 1796 78   7 1846 54   8 1896 26   2
1697 53   4 1747 30   11 1797 53   9 1847 69   9 1897 30   2
1698 60   9 1748 32   10 1798 51   10 1848 50   6 1898 34   0
1699 56   10 1749 32   10 1799 69   0 1849 44   3 1899 25   8
1700 35   6 1750 28   10 1800 113   10 1850 40   3 1900 26   11
1701 33   5 1751 34   2 1801 119   6 1851 38   6 1901 26   9
1702 26   2 1752 37   2 1802 69   10 1852 40   9 1902 28   1
1703 32   0 1753 39   8 1803 58   10 1853 53   3 1903 26   9
1704 41   4 1754 30   9 1804 62   3 1854 72   5 1904 28   4
1705 26   8 1755 30   1 1805 89   9 1855 74   8 1905 29   8
Average
50
years		 42   10 36   0 51   9 65   10 *42   7
* Average for 46 years only.

Thus, whatever the cause of the decline in the price of wheat may be, it cannot be attributed solely to the fall in the rate of rail or ocean freights. Incidental charges are lower than they were in 1870; handling charges, brokers’ commissions and insurance premiums have been in many instances reduced, but all these economies when combined only amount to about 2s. per quarter. Now if we add together all these savings in the rate of rail and ocean freights and incidental expenses, we arrive at an aggregate economy of 8s. per quarter, or not one-third of the actual difference between the average price of wheat in 1872 and 1900. To what the remaining difference was due it is difficult to say with certitude; there are some who argue that the tendency of prices to fall is inherent, and that the constant whittling away of intermediaries’ profits is sufficient explanation, while bi-metallists have maintained that the phenomenon is clearly to be traced to the action of the German government in demonetizing silver in 1872.