WHEAT PURCHASE

Dominion, Volume 10, Issue 3088, 19 May 1917, Page 8

WHEAT PURCHASE

HON. W, D. S. MACDONALD'S DEAL

SOME LOCAL COMMENTS

The statement cabled from: Melbourne that (ho Hon. IV. D. S. MncDonald, Minister of Agriculture, has bought a. million and a half bushels of Australian wheat at ss. lid. per bushel, f.0.b., on bohalf of the Now Zealand Government has caused some surprise in local trade circles. It was generally known that the Minister had gone to Australia for tho purpose of buying wheat, in view of the anticipated shortage in Now Zealand supplies, but it does not appear-to have been expected by merchants and others that.Mr. MncDonald would have to pay as much' as ss. (id. a bushel at Australian ports. One business man to whom the matter was mentioned by a Dominion reporte:snirl that if tho New Zealand nient really was going to pay 1 ss. Cd. n bushel f.o.b. for Australian wheat, the Commonwealth authorities had certainly got very much tho better of the deal. Everybody know that Australia had hugo quantities of wheat in store, with apparently small prospects of getting it to a market, and that the new l.arvest was increasing the congestion. A private buyer, in a position to approach the "wheat pool" with a big order in hand, would have expected to buy at less than ss. Gd. His own impression, added tiie merchant, was that Australian wheat, under present circumstances, should have been purchasable at from is. to Is. 6cl. at ports. Another gentleman interested in the grain market said that it was inadvisable to pass judginont: regarding tho deal without knowing all the facts. The Australian Government had fixed the MayJune price of wheat for tho mind's at ss. !)d. per bushol on trucks at Sydney, but tho home price could exceed the' export price. The present value of Australian wlioat in store or stack depended upon tho shipping prospects, i-nd nobody outside official circles could know just what thoso prospects were at tho present time, Wheat had changed hands in Chicago at over 13s. a bushel, and that price nuist not be regarded as purely speculative. There was an actual world shortage of wheat, and if the Australian authorities had means of getting all their ■wheat to the markets they could require a better prico than the 53. Cd, paid by the Hon. W. D. S. MacDohald. The purchase could not bo regarded as an advantageous one, but it might, bo the best that could have been made at the present juncture. The Federal authorities would wish to got tho liighest possible'price for tho wheat, on behalf of tho farmers interested in tho "pool" and the sellers' knowledge of tho fact that New Zealand was faced by a shortaga and could buy wheat nowhere but in tho Commonwealth would hamper tho Minister in trying to mnlto a bargain. Tho amount of wheat in stack in Aus-

tralia at tho end of April, according to the official figures, was over 38,000,000 bushels. This total included "10,180,000 bushels of the old, season's grain rail 28,225,000' bushels of the, new season's wheat. During the five months prior to April 21, 1917, tho amount of wheat moved from tho country districts was' under 8,000,000 bushels. SOUTHERN COMMENT. By Telegraph!— Press Association. Christchurch, May 18. The report that the Hon. W. D. S. MacDonnld has purchased a million and a half bushels of wheat in Australia should relieve the. position of those millers who have stated that they have been unablo to obtain supplies to keep thoir mills going. It is being \ suggested to the Government that an export grader should be 6ent to Australia to pass the wheat before shipment, in view of the fact that so much damage has been done to wheat stocks by mice, and also to obviate the danger of any pests tD which the grain may be subject being introduced.