WHEAT SUPPLIES

Dominion, Volume 8, Issue 2426, 3 April 1915, Page 8

WHEAT SUPPLIES

LOAN FROM AUSTRALIA MAY HAVE TO BE REPAID Early in the history of tho wheat crisis in Now Zealand consequent 011 the outbreak of war tho Dominion Government purchased 100,000 bushels of wheat from the New South Wales Government, giving an undertaking, however, that if the wheat • should later be required in New South Wales, a similar quantity should bo returned by tile New Zealand Government, or rather re-sold to tho New South Wales Government at the original purchase price. In other words the transaction was a loan rather than a sale.

The Prime Minister (the Right Hon. W. F. Massey) has now received advice from the Netf South Wales Government that the wheat may he required in that State, and that he may therefore have to return it. He informed a reporter yesterday that ho hoped to be able to repay this loan out of the wheat over which he had secured an option in Canada, as presumably there would he no shortage of wheat in Australia until tho time of next harvest was approaching. "Wo shall probably make a loss on the transaction." he added, "but at the time we arranged to get that wheat from Australia we were in an exceedingly awkward position here. More than half of our mills had closed down, and supplies of wheat wero just- about exhausted. The New South Wales wheat arrived just in the nick of time to save us from a flour famine. The cause of the high prico of Canadian wheat ,to us is the enormously high cost of ocean freight. The best offer wo liavo for. tho carriage of any future supplies of wheat from Canada b £4 4s. per ton, and as a ton contains 37 bushels this works out at 2s. 4d. per bushel. Don't suppose, that we are agreeing to pay these rates. I am endeavouring to make hotter arrangements.

"I have here a Teturn prepared_ by the Registrar-General showing the prices of wheat and flour in New Zealand, and in the Australian States. In Christchurch, tfliich is our wheat centre, ■wheat is quoted at 6s. 9d. per bushel, and flour at £16 10s. per ton. In Melbourne the price of wheat is Bs. 6d. and of flour £18 55.; in Hobarfc wheat is Bs., apd flour £17."