| 
10 
very rapidly accompanied by acute depression; and in the fifth 
(1923-1925) prices were comparatively steady. These price 
changes were due mainly, though not wholly, to causes external 
to agriculture—that is to say, causes which brought about 
changes in the general level of the prices of all commodities; or, 
in other words, they were due more to changes in the purchasing 
power of money than to changes in conditions of supply and 
demand in respect of agricultural produce. * 
The average fall in wholesale prices (all commodities included 
in Sauerbeck’s index number) between 1871-1875 and 1894-1898 
was 40 per cent. The corresponding fall of certain agricultural 
produce is given below :— 
Wheat - 
Barley - 
Oats - 
Potatoes 
Pork  - 
Beet - 
Bacon - 
Mutton - - 
Butter - " 
51 per cent. 
39 
38 
39 
23 
29 
25 
25 
25 
Of these commodities wheat was the only one to fall in price 
more than all commodities—a fact which was undoubtedly 
accounted for by the increased production of wheat in the newer 
countries of the world, the development of transport facilities 
abroad and the reduction in ocean freight rates. In its reaction 
upon agricultural production this prolonged period of declining 
prices was the most disastrous that had been experienced since 
that which followed the Napoleonic wars. The depression was, 
however, mainly in arable farming, as is indicated by the rela- 
tively greater fall in cereal prices. Stock farming suffered to a 
considerably less degree. 
In the second period the average rise in general commodity 
prices was 33 per cent. between 1894-98 and 1910-14. The 
corresponding rise of certain agricultural commodities was :— 
Wheat 22 per cent. 
Barley i 
Oats = - i 
Potatoes 
Pork =: 
Beef 
Bacon 
Mutton 
Butter 
3 
* The changes in the general level of Agricultural prices owing to 
monetary causes is discussed in the Report of the Committee on 
Stabilisation of Agricultural Prices published by the Ministry of 
Agriculture. Economic Series No. 2, price 1s. 6d, 
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