THE WHEAT MARKET

Hokitika Guardian, 12 March 1930, Page 5

THE WHEAT MARKET

United Press Association.—By Electric Telegrapn.—Copyright.)

(Received this day at 12.25. p.m.) WASHINGTON, March 11.

Mr Legge issued a warning that unless the wheat farmers reduce the acreage by ten per cent, to prevent another wheat surplus, the Farm Board will be unable to help them get a fair price next year.

Legge, in a virtual ultimatum in a letter to Governor SI niter (North Dakota) explained:—“The board will have a hundred million' bushels of wheat on hand at the end of this year, and there is no hope of dumping much on the export market, nor is tb

ere hope of relief of congestion, at ermined markets within sixty clays. L’he tendency seems to be for the congestion to grow worse instead of better, which is due to rapid liquidation in Australia, Canada and Argentine.”

Legge stated he believed this would continue at something below price level in the United States, no matter to what basis that level went. He continued: “If the farmers are going ahead trying to produce an additional surplus on the basis that some way will be found to take care of it on farm price level for another year. They are going to be mistaken if they eo-'operate stabilisation. Co-operation will be justified in paying storage charges carrying this wheal' for a time in the hope of crop, shortage somewhere in the world will give an opportunity to unload it. If on the other hand the farms attitude is to “let George do it all” the natural procedure would seem to be to dispose of this wheat, Tlie best they could do will be to write off loss, but this would adversely affect the price of the 1930 crop. There is no possible solution unless wo get the co-operation of the wheat growers themselves. No other industry blindly produces without attention to potential market possibilities.”