The Capitalist System: How It Works. (1929)

From the July 1929 issue of the Socialist Standard

The following is taken from the “Daily Telegraph” (Wednesday, May 22nd). It tells its own story. The italics are ours :—

From Our Own Correspondent.

NEW YORK, Tuesday.

The owners of America’s surplus wheat crop, it is estimated, to-day will have to face a loss of more than £11,000,000 unless the price of the commodity rises substantially before the new crop is harvested.

Two big crops in succession have left the world “gorged” with wheat, and with the prospects of another full crop this year the price has fallen until it threatens to break through the four shillings a bushel level.

The world’s carry-over of wheat at the beginning of the new marketing year on July 1 is expected to be 350,000,000 bushels, or about double the amount on hand last year. The major portion of this amount is in the hands of middlemen, who will bear the brunt of the reduced prices. But the large carry-over is likely to continue to have a depressing influence upon the grain market. In that case it will be difficult for the American farmer to dispose of his new crop at a fair profit.

The only hope, apparently, is for a poor harvest, and of this there are no indications at present.