WHEAT SUPPLY

Dominion, Volume 8, Issue 2372, 30 January 1915, Page 8

WHEAT SUPPLY

BIG PURCHASE BY GOVERNMENT 1,000,000 BUSHELS FROM CANADA. The Prime Minister, on behalf of the New Zealand Government, has secured 1,000,000 bushels of wheat in Canada for delivery in July. The wheat brokers' term in America for a transaction of the sort is that tliis Government has purchased "July options." Tho meaning of it,, is that Mr. Massey has contracted to buy, and some agents have contracted to sell to him, 1,000,000 bushels of wheat out of the next Canadian crop, which will bo ready for shipment in July. For a contract of this sort the buyer is called upon to pay a deposit to compensate the selling agent for possible loss in the event of the buyer failing to complete the purchase. One million bushels. of wheat is of course a very large order; but a review of facts as they are will show that probably that amount of wheat will be required for consumption within New Zealand within twelve months from r July next. This year the war and the disturbance of commerce following upon it showed that New Zealand was very short of wheat, with apparently only slender chances of being able to replenish depleted stocks. Investigation showed that our wheat production normally is not sufficient to feed our population; also that there was not at the outbreak of war a sufficient quantity of wheat and flour in New Zealand to satisfy our needs until tho new wheat was available. In view of these facts the ■ Government purchased wheat abroad—sßs,ooo bushels in all. The shortage was most acute a few weeks ago when the first instalment of these purchases began to arrive. Only about. 105,000 bushels had reached here previously to Thursday last, when the Kaiapoi arrived at Bluff with 100,000 bushels from Australia. This cargo will be distributed at the ports .of Bluff, Port Chalmers, Oamaru, Timaru, and ! Lyttelton. Presently the shortage in 'j the North Island centres, where it is almost, vf nos quite, as acute, will be relieved by the arrival from Vancouver of the steamer Hornelen, with 100,000 bushels of Canadian wheat. The biggest shipment of all will come in the s.s. Hesperos, now at sea, outward from St. John to New Zealand ports. The consensus of opinion is that all this wheat will be requirfed, and that more importations will be necessary next year. There is also a consensus of opinion that wheat will bo dear next year, j, wherefore Mr'. Massey has arranged to purchase 1,000,000 bushels from Canada. There should be no danger of loss because it should be easy to sell the wheat to advantage in the highly improbable event of its not being requined, here. Tho action of the Government' has assured New Zealand against a bread famine, or even against anything approaching famine prices for bread.