SPECULATORS IN OATS.

Hokitika Guardian, 10 June 1920, Page 3

SPECULATORS IN OATS.

! WANT THli EXPORT TO I AUSTRALIA STOPPED. Thu trouble ill the oats market caused last year by Auckland speculators has now made a reappearance. A lead- ' ing merchant in Otago when asked about this matter said: , The natural course of business would I bo that merchants in the South (where the bulk of oiits are grown) would be trying to find purclihsors in the North and elsewhere. This procedure was "e----versed. Practically before a sack of oats was harvested, the Auckland speculators wore making endeavors to sell oats to us, and they succeeded in effect- [ ing sales amounting to tens of thouI sands of sacks of oats they they did hot pdss'ess. Knowing something of I the exceptional conditions throughout the oat-growing centres -and being con ■ vinced that the future "prospects all indicated that, high prices would rule this season, quite a number of merchants throughout the Dominion promptly took advantage of the offers from Auckland to supply oats right on from March to December 1920, at very reasonable prices indeed—viz. from 5s • Id to os 4d f.0.b., sacks in. 'f'he majority of the large operators in Otago nlid Canterbury, however, would not | touch the Auckland “paper” oats at any price, their recollection of the trouble and annoyance there was last year over the multiplicity of transfers in eonnee- ' tion with the paper contracts having I caused them to resolve that they would confine their operations to actual oats; consequently most of the large shippers and millers have been buying all lines suitable for their requirements ever since the season opened, and have been paying the farmers anything from 5s to 5s 6d, bags extra, on trucks at country | stations, according, to quality, or equal I to 5s lOd to 6s 4d f.0.b., sacks in. | Realising now that most of the oats , have passed from the grower into the hands of the shippers and millers, "the Auckland forward sellers who took upon , themselves" to sell the farmers’ oats without consulting him are now running to the Government with a plea to have an embargo placed upon" tile export of oats to Australia, and the Auckland traders referred to have been flooding the South Island merchants with sheaves of telegrams ever since the season opened, these telegrams containing quotations for oats considerably; below the prices being paid to the growers, and circulated with but one object—namely, to bring about the entire demoralisation of the oat market. Indeed, shippers and millers have been experiencing a most anxious and tryuig time for months past, and it has been made more difficult for them to continue , paying the high prices that have been ruling) for the simple reason that tlie North Island, owing to favorable wca • ther conditions, has up to the present been able to supply her own requirements as regards oats, cliaff, and other necessary produce. J3ut North Island merchants are now beginning to realise that it is necessary for them* to begin . importing oats and chaff from the south .while Australia is also coming Into the market for the same purpose. Fearing that the demand from Australian markets will cause considerably on- ' hnneed values, the Auckland forward sellers are now rushing to the Government and seeking protection and ielief.

It would be shabby treatment for the millers, shippers, and farmers who still bold oats if the Government at this stage,stepped in and placed an embargo upon exports just to save the Auckland gamblers from suffering a. loss. ' But there are other aspects of the business that have to he considered. AY-e are to get wheat from Australia, and we also require thousands of tons of super-phosphates we so badly need. Another thing,is, we want the Commonwealth Government to withdraw the embargo that has been placed upon the importation of New Zealand potatoes into Australian ports; and if we practically say to the Australian authorities that" we cannot give them anv oats or chaff because we are afraid we will run short ourselves, they might reply to the effect that they will he unable to spare, us any wheat or superphosphate's for the same reason. No doubt Mr Massey and other responsible Government officials will give these aspects of the situation mature consideration, and not' allow themselves to he influenced hv the Auckland speculators. It is recognised as a sound economic principle that a country should endeavor to make the value of its exports exceed that of its imports, and it would he unfair not only to farmers and ship pers, but to the Dominion generally, if the Government showed special consideration for a few individuals who are worrying about a loss which they have brought about' themselves. It simply means that if the Government interfered with the market ioi oats farmers will become afraid to grow this cereal, as was the case when the price of wheat was interefered with. Th Government had quite sufficient experience already to convince them that if tile area sown in crop in this Dominion is to be materially increased, there must l>e an open ■market left to the growers.

It may he mentioned that at the present price of. oats the millers have convinced the Excess Profits Board that there is not more thanos lOd. per ton profit left if they, have to continue selling oatmeal at the present price, so that it must be evident to everyone that the fault does not lie at the miller’s door, and that it'would he unfair for the Government to' interfere in such a way as to cause the stociM of the millers’- raw material to depreciate in value ,