buy up all they can, and sell it again at a profit to the wholesale merchants. Retail trade is only in bazaars, on market days, and then, if the purchaser comes too late, there is none to be had.
This symptom, it seems to me, shows with sufficient plainness that there is not as much grain as is needed. The same thing is proved partly, also, by the prices, although this year, hitherto, there are reasons which do not permit prices to be a legitimate proof of the conformity of demand with supply. The prices are lower than they ought to be, and are maintained on this lower level artificially: in the first place by the interdiction of exporting grain abroad; in the second place by the action of the zemstvos, which sell rye and meal at reduced prices. I am speaking of the price of rye, supposing that the prices of other food products—beets, potatoes, millet, oats—more or less correspond to the price of rye.
The prohibition of foreign exportations reduced prices, in other words, caused prices to be an unreliable indication of the amount of any given commodity. Just exactly as the height of the level of the water in a dammed river cannot be an indication of its actual level, so the present price of rye cannot accurately mark the relation of the demand to its supply. The prohibition of the export of other breadstuff's has the same effect. The prices now existing are prices not self-sustaining, and are in any case reduced temporarily, in consequence of the prohibition of export. This is one cause of the fact that prices are lower than they ought to be.
Another cause is the action of the zemstvos. The zemstvos everywhere buy only in small quantities, rarely one-fourth part of the grain needed for nourishment according to their lists, and they sell the grain at a reduced price. This action of the zemstvos also reduces the price, since if there were no sale from the dépôts of the zemstvos, this sale would come from the large dealers who, according as the demand increased, would raise the prices. And therefore I think the price now maintained is not the actual price.
