WHEAT AND FLOUR MARKETS.

Dominion, Volume 9, Issue 2680, 28 January 1916, Page 6

WHEAT AND FLOUR MARKETS.

Sir,—Just now everyone appears to be an authority as to.what should have been done during tie crucial, period that we have passed through, and I suppose after the war similar wise men.. .will come to light. "Bradgate," also "Bradstreet's" prior to the war reported ' a. world's shortage of v 76 million quarters of wheat, compared with the yield of the previous year, and this was augmented- by tlhe Australian drought and out own crops not being so large as usual. The advance in flour, as state® by Mr. M'Comb, from £9 10s. to £17 10s., was not so sudden as he would have you to believe, but was spread over nine months, advancing 10s. to 20s. per ton at a- time. True, a shortage in the Dominion's crops was predicted at war time, and I again state that the public, in its panicky, state, caused the rapid advances by stocking ahead of actual requirements, and I estimated at the time that about 15,000 tons were held in Do-, minion private homes, apart from the quanity held by the .trade, and clamouring to- the Government for more, _ when there was no necessity for it, which caused the millers to rush the markets—and this not only occurred in the Dominion, but throughout the world. American wheat and flour was bought, but, owing to the scaroity of freights and high rates, and before it "could be shipped, it was resold in several instances at a considerable advance in

price. As a natural sequence, the wheat! markets advanced rapidly, and more so ill the Commonwealth than in the Dominion, though the Customs duties were withdrawn in both countries.

Tho Sydney Government is oontinuaU ly quoted as the paragon in dealing with these matters, but it did not realise tho seriousness of tho drought, because up to October, 1914, it was allowing flourto be exported, and 1 lent our Government 100,000 bushels of wheat, and then had to go to America and buy heavily at high rates. The Govenment" indireotly admits it lost heavily in its transactions, but says it kept down the price of bread. Is this sound "business? It has formed a huge Commissions Board, and I am told by those in tho trade that it is a real good thing to bo associated with. Stocks were commandeered in Sydney, still it held the record . for highest-priced foodstuffs, with the excaption, of bread, which was a loss to tho Stato. Mr. M'Comb says the Commonwealth farmers have sown double file quantity of wheat, notwithstanding the Sydney Government's action, but it was only, confined to its own Stato, and who wouldn't take the risk during such an abnormal period, as sometimes .there iB change of Government. Tho embargo on wheat export was removed, and the duties reimposed in New Zealand, in conjunction with the similar action by tho Commonwealth. No wheat has been exported from the Dominion, but Mr. M'Uorab says the embargo was removed to give the exploiters an opportunity to snip away the surplus of two million bushels; the bulk of this wheat is held by wicked speculators, who are now paying for their folly in holding wheat at 7s. 3d. per busnel, plus s all charges, and the only place that they can ship to is London, and tho pric/ of wheat there is .Bs., and the freight and.charges, if former is procurable, art 3s. por bushel; so, according to Mr ( M'Comb's logic, the oxploitcr loses 2s. 3d. per bushel. For those farmers who didn't sell, this may be Socialistic, but it is not commercial, though occasionally you come across a philanthropist, and lie doesn't know that life is one until after the event. The next fairy tale is that when the Customs duties were reimposed flour ad« vanced 405., but as the Dominion's Cus< toms duties on wheat and flour are only 20s. per ton (in comparison with the Commonwealth's duty of 60s. per ton on. same articles) this computation is beyond my comprehension, as fiour only advanced 15s.- per ton, and this was due to the Sydney Government's interference, as the farmers there, through brokers, offered wheat at 4s. 9d. (with proviso if allowed to export), in parity with London rates, and our Dominion farmers also offered likewise, because I bought at, the money. The Sydney Government decided to again, control, and jumped the price up _ to os. 3}d., but without any explanation, and imposed stringent restrictions as to export—everything must pass through the Government Board. I assume tha 6jd. per bushel, equal to 26?. a. ton, is to pay the board's cost of administration, and pTobably to recoup for past bungling, as someone must pay _ for both. Yet' this is the sort, of administration that Mr. M'Comb apparently wants in the Dominion, but lie hasn't named the- prospective directors. In conclusion, I maintain that foodstuffs, etc., during tho crisis were cheaper in the Dominion than ojiy<" where else. —I am, etc., P. VIRTUE. Auckland, January 24. 1916.