The War That Shook Seattle’s Wallet: How European Conflict Spiked Wheat Prices
While the rest of the world braced for war in the Balkans, Seattle merchants watched their profits soar as panic buying drove wheat prices to historic highs.
The story, cleaned up
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The war in Europe has created great excitement in trade exchanges today and has had a tendency to affect the price of wheat. Although neither buyers nor sellers show much disposition to conclude any transactions at present, both being apparently anxious to have more definite news of the situation before doing business. Some parcels of milling wheat were sold yesterday at $1.70, being an advance of 25 cents on any price heretofore reported.
Telegraphic reports indicate that the outbreak of war between Turkey and Russia is considered as already begun, with generally believed that other powers will become involved. This commercial and financial crisis in Russia and consequent heavy fall in Russian exchange adds to the confusion. Intelligence from Vienna states that England considers all diplomatic action at Constantinople at an end.
In Seattle, the local market reflects this global tension. The price of wheat advanced rapidly: at the close of the previous day, it was $1.45; soon after, it advanced to $1.60; then to $1.70; and finally declined to $1.68. The market is feverish and excited on account of war rumors, and especially of the decline in produce exchange from Chicago, which says that the people are every where over the execution of produced orders over the side rise in wheat in that city.
This 1878 report captures an early instance of global supply chain shock hitting a local frontier economy. Just as modern Seattleites watch how international conflicts or pandemics disrupt housing markets and grocery bills, these 19th-century merchants felt the immediate financial tremors of distant wars in their own ledger books.
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