PENNIES COUNT

Evening Post, Volume CXV, Issue 15, 19 January 1933, Page 8

PENNIES COUNT

WHEAT PRICES RISE

MEANING TO: AUSTRALIA

(From "The Post's" Representative.) SYDNEY, 12th January. . Optimism reigns again among those who are interested in the wheat industry in Australia. Wheat, prices have taken a definite upward turn, and the feeling exists here, as it does abroad, according to recent cables, that the worst is now over. Quotations in Sydney this week have reflected the improvement that has been reported from oversea, and the advance lover the rates, ruling last week was one penny a bushel. There is a tendency to, go. to-higher levels. . . ■ ■ ■....■-'.-■:' A jienny a bushel rise, may not seem much to the average city dweller, but it affects' him vitally, nevertheless, just as it affects all,the wheatgrowers of the Commonwealth.-; It; means.' moTO money for the farmer, and the circulation of more money in 'the .cities. It means also the- augmentation of funds in London, because payment for the bulk of the Australian jorop, which is exported, is made through.London. Preliminary estimates of the Commonwealth wheat harvest give. an approximate total of-198,500,000 bushels, which -would compare with 189,652,654 bushels in 1931-32. Every gain of a penny a bushel represents approximately €.827,100 for the whole harvest. This will provide a welcome addition to the financial resources of the agricultural section of the community. If the wheat -market actually hardens still further' there will be great jubilation in the wheat districts, where so many farmers have been on the bread line, and have been/living for nearly two years spoonfed by the ■ Governments. The .various Governments have been, very kind to the wheat men, but that was because of the anxiety to maintain the .volume of production. In times of low prices volume plays an important part. '.'.[■''■ i : •-■■ ~ •■■■■-■ ■ And so it is that every penny counts. An increase of a penny' a pound in the price of Australian wool means an additional revenue_totaliing £3,600,000. Is it any wonder that the wool; market is so closely, watched, and that there was excitement in Sydney this week when the indications pointed to a hardening of/the price of wool. On butter produced in Australia a penny gain wo.uld represent about £1,500,000, and a similar increase in the price of cheese would represent. £137,000. On these items in the main group of Australia's principal primary-products, the advantage obtained by an all-round increase of a penny a pound would be approximately g 6;ooo,ooo; '-'-..■