HUGE WHEAT POOL.

Hokitika Guardian, 3 April 1924, Page 1

HUGE WHEAT POOL.

AN AMBITIOUS SCHEAIE

VANCOUVER, March 4. To obviate constant fluctuations in the world’s wheat markets to the detriment of Canada, the Unied States, Australia, and New Zealand, as well as other countries, North America has set aloot an ambitious scheme to persuade New Zealand, Australia, and other interested countries to collaborate in a wheat pool on an extremely large scale, and some details of the movement were furnished at a gathering held in Saskatoon, Saskatchewan, by Mr Aaron Sapiro, of Chicago, who is one of the leading advocates of, and authority on, the system of voluntary contract pools. As Australians and New Zealanders may already know, Saskatoon is a great wheat-growing centre on the Canadian prairies, and at this meeting All S-upiro .ssiid: It is expected by the Canadian and United States loaders that within three years there will he a pool at Liverpool selling the wheat of Canada, the United States, Australia, and New Zealand, and perhaps Argentina. You know a committee at Liver-

pool. controlling the actual surplus wheat of those great grain-producing countries, will have something to say about its price. The exporters would fix the price rather than the gamblers. . The job of organising the wheat of the world is the world’s biggest job, and it cannot be done unless Uauada. takes the first great steps. Canada is the biggest factor in the world’s wheat market. “The plan is to form three Canadian wheat pools, operating on five-year con tracts. You are not going to make real success in one year. It takes time to work up a personnel and to estnblislitradc connections.” Air Sapiro expressed the hope that the three pools would combine, and through one Dominion agency sell at least half of the wheat raised in Canada. “The pool,” said the speaker, “will lie financed by Canadian banks. And if Canadian banks will not find the money 1 am authorised to say that New York banks will finance you up to two hundred million dollars. “Canada must organise first. Tire United States is 1 organising. By the end of this year wo anticipate that seven States in the Mississippi Valley will be handling between 150.000,000 and 200,000,000 bushels. AUSTRALIA AND NEW ZEALAND’S SURPLUS.

“As part of their plan they are going to offer to poo] their surplus with the Canadian surplus, and sell out of a common office. They also expect Australia. and Now Zealand to join in the pool with their surplus.” Mr Sapiro said it was certain that the system of marketing wheat through the exchange had been a failure. The test of a successful trading system was not the creation of a group of millionaires in Winnipeg (Canada’s wheat metropolis, hut of a decent standard of living "in nrnirio homes. Air Sapiro doubted if Great Britain’s buying power was so limited. Ther was need ior fundamental and basic changes. The present system had failed. The Winnipeg Grain Exchange was becoming the most conspicuous foe of real commercial marketing in all the world. Winnipeg was “the healthiest place in America for gambling in wheat,” and there was “something doing in the grain exchange,” which Dr. Robert Mag:!!, secretary of the Winnipeg Grain Exchange, had uot explained. !he speaker defended the co-operative plan of marketing as against the grain exchange system, which has been upheld by Dr. Mngill, and Mr Sapiro went on to say that farmers had concentrated in production, and had left marketing to the other fellow. The farmer must learn to market his own product. Mr Sapiro told of the success of cooperative marketing in the United States, pointed out several examples and declared that co-operative marketing was merely the application of business principles to farm problems.

“Canadian wheat,” said Mr Kapiro, “is the best in tlie world, and it strikes me as absurd that the men who prow it cannot maintain a decent standard of living in their own homes.” Dr. Magill dealt with difficulties in marketing the 1023 wheat crop. The crop had been estimated at 500,000,00 r bushels. Domestic consumption would account for not more than 100,0003 bushels, and the problem was to market the balance. This 400,000,000 bushels bad to be sold in 12 months outside of Canada, lint ire continents bought not a bushel. The market largely was limited to the United Kingdom, Germany, and Belgium. The main market was the United Kingdom lmt not more than 250.000,000 bushels could be placed there. Germany could buy little. Canada was at a serious handicap in the distance from tidewater of its great wheat bolt. Dr. Ma gill's charges met the farmer’s grain from the time it left the taim until it was handed to a British mill, and he saw no chance to eliminate any. fn addition wheat from othei countries appeared on the British mu' ket earlier, lie said.