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FLOUR SUPPLY AND THE WAR

WORLD-WIDE SHORTAGE

CAUSES ANALYSED

Public 'attention has been drawn to tho greatly enhanced, prico of Hour_in New Zealand since war broke out with Germany and England. The conclusion generally jumped at was that tho war tad brought about this state of afiairs, and was actually ,tho sole and only reason for the increase in price. But, as a matter of fast, it is pointed out, the shortage in : tho world's wheat supply last year lies :at the bottom of tho prices that are to-day being asked for milling grain in' New Zealand, Aus'tralia, America, and Europe. In our own case tho anticipated.shortage for last season of wheat actually required for local consumption was 1,000,000 bushels, but it; was discovered after threshing time that the shortage nearly doubled that quantity. That led the wheat farmers of Australia, and New Zealand to prick up their ears and watch for a coup. A careful study of tho reports since June last year (when the accurate extent of tho shortage became known), informed tho farmers that thoy had "a good thing on" }i they could hold stocks for a season. Thero was then no whisper of war to excite tho market, and..yet prices steadily hardened through the year. Last season found the American crop all too little for tho demands, and' right at the crucial moment when the whoat was being harvested came the war.

The American Market. ' The following extract from the."New York Sun" of August. 27 gives a pretty clear reading .of the flour market of America:— .■"" "George A. Zabriskie, who has tao exclusive agency in New-York for the Pillsbury Flour Milling Company, ot Minneapolis, asserted at the hearing before Chief Magistrate M'Adoo that tho shortage of the European wheat crop is responsible for the present high cost of flour, and that the European war if it continues will drivo prices beyond -anything so far experienced. _ An embargo on wheat and flour would restore normal prices here, he said, but iti would result in the Administration that put it into effect being turned out of office.by the . protesting fanners. That more and more people.who aro being pinched by high prices are turning to an embargo on fobastutts as a remedy is indicated by reports made th the Mayor's Committee. Three delcga;t.ions. 'respresenting; civic organisations called on Commissioner Hartigan yesterday and urged a recommendation to the Government' in favour of an embargo. They reported that the sentiment in favour, of this expedient 'Iβ crowing. The Mayor's Committee, caught between the arguments of those who want an embargo and those who saj that every effort should be made to extend foreign commerce, fjids itself in a puzzling situation. ■ ' "In support of hie - , contention that there is an unusual'domand from abroad for American flour, Mr. _ Zabriskie. said that he is now negotiating with England, France, Norway Spam, Turkey, and Greece, either directly with Governments or with dealers there, for the ' delivery of practically -unlimited quantities of flour. There is a shortage this year of from 300,000,000 to 400,000,000 bushels in the -usual European wheat crop. Greece and Norway can no longer .buy from Russia, France, ! usually self-supporting, is making big ' ■ ' "It is estimated that the American crop, 150,000,000 bushels'greater than Lusual, will produce a. surplus of 300,000,000 bushels, but Mr. Zabnskio believes that at tho present high -rates offered in Europe, and. with tho importtors bearing the war,risks, this surplus will be exhausted unless exportation is stopped. Ho did not advise ah embargo, but he said it would undoubtedly stop the war and lower prices here. Then he added that the farmersVho are making the big profits and who number 2a per cent, of the voters would see to it that whoever was responsible for an embargo would be turned out of ofiico at the!earliest opportunity." _ . _ n ■ ' "Aβ for local consumption of flour, Mr Zabrinskie said that whereas from July 15 to August 25, 1913, ho had sold 14,320 barrels, he had during the same' period tills year sold 39,610 Barrels, an increase of more than 100 per cent. His explanation for tho homo consumption was that,the housewives have seen the inevitable effects of shortage and war in Europe and have been stocking up flour." . ■ . . ■ : ! ' War of Natural Elements. In this part of the world the natural elements have' fostered high rates. In Aiistralia.tho shortago for the coming season is likely to be very considerable, owing to the prevalence of drought conditions. In some districts tho grain put in the ground is still there, just as it was put there. There has not been sufficient moisture in ,the earth to encourage, it to germinate. There have been signs of drought for .four or five months past—signs enough to encourage tho wheat-farmer to gamble by holding on to what stocks yet remain. Those who have so gambled have won. It would bo interesting to learn if the . animation, of the London wheat .market during' June and July was caused by the operations of our present enemies, and whether they .were successful in gaining possession of any portion of the grain the-y may havp purchased before the flame of war shot up,on the Belgian-German frontier. Since the outbreak of war with England,' Germany's oversea, shipments have suffered disastrously. . ' '

Not only, is tho wheat outlook bad for the,next half-year, but the pros-, pects do not favour a recovery after, that time. .New Zealand has suffered from a very dry spell, and in places in ■/South Canterbury the grain put in weeks ago'has hot-yet sprouted. It is said to bo lying in-the grmind just as dry and hard as though it were in a barn. If tho rain does not come soon, the chances aro thai the shortage will greatly exceed that of last season, which.mean 3 high prices indefinitely.

We may be a- bit «low in seeing just what conreo to take concerning our merchant mnrino (remarks an American exchange),- but upon another matter, and to millions one of far more immediate importance, wo hav.e acted with commendable promptitude-. Any lack of tierman-mado - carbons will have no effect upon the continuance- of our mov-ing-picture shows.» Amorican-made carbons will bo substituted for them as needed, and our great national form of relaxation will be uninterrupted by the war. The influence of this display of resourcefulness is gratifying in itself, and it ought to act as a spur in every lino of activity that is at all depondent upon foreign importations. Of course-, other fields of businere, not having to do with articles of tho transcendent valuo.and indispensability of films and screens, will not have quite so sharp an incentive for haste as this one. Nothing that a drug-storo keeps in stock, for instance, can possibly be needed, even in an emergency, like a set of films that one- has not eeon before. IF the Administration has concentrated its attention upon minor things liko shipping bills, it is only because it could count upon pressing necessity to be the mother of invention in regard to so primary a public need as the moving-picture exhibition. Tho Rev. E. Mules, son of Bishop Mules, of Nelson, who has had a curacy for somo time in Oxehott, hopes to roi turn home aext month.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19141020.2.24.36

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 8, Issue 2285, 20 October 1914, Page 6

Word count
Tapeke kupu
1,206

FLOUR SUPPLY AND THE WAR Dominion, Volume 8, Issue 2285, 20 October 1914, Page 6

FLOUR SUPPLY AND THE WAR Dominion, Volume 8, Issue 2285, 20 October 1914, Page 6

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