WELLINGTON NEWS

Hokitika Guardian, 18 June 1930, Page 2

WELLINGTON NEWS

TIIE WORLD’S WHEAT

(Special Correspondent. - )

WELLINGTON, June 16

Another wheat year will begin in about live or six months’ time and this is an anxious time .for the growers in the United States and Canada.. Crop reports and lore-casts are, now; >being broadcast,, and the probability is that there will lie another good crop, dint apart Irani weather influence's upon growing crops, the dominating outlook of the international whom position, is still the large supplies, in North America coupled with the

prospects of the United States, winter wheat crop. A recent view of the situation by the International J nstitute at Rome pointed out that the World’s totui exports for the first half of the present season to January 31, .amounted, to a little more, than a third of the total exportable surplus, and that to cover the requirements of importing countries during the remainder of the season would require about the same exports as for the first six months of the season. Continental countries, with their own good crops last harvest, high tariffs and various official milling regulations, have imported much less this season than lor many years past. According to reports the stocks in Canada on March 31 were reported as being 229.000,000 ibushels. Deducting 42,000,000 bushels for seed, 36,000,000 bushels for food requirements in the next four months, and 11.0,000,C00 bushels for the carry over, the exportable balance would be 56,000.000 bushels to the end of the crop veai", .

The carry over was estimated at 10,000,000 bushels in excess of last year’s carry over of 104,000,000 bushels. In Canada it was thought to control the situation voluntary pools which were to secure for the growers high prices, and in the United States the Farm Relief had the same object in view. In Canada the Provincial •Coveraments have been obliged to render financial assistance to the pools. News has been received in Australia that the Federal Tariff Relief Board of the United States has announced that it will withdraw from the market as soon as the present surplus is cleared, and that it will allow regular exporters to handle the surplus wheat of the new crop. Tiie original purpose of the Farm Relief Board was to finance co-opera-tiye societies to enable them to control the sale of primary produce and to support stabilisation corporations authorised by the Board to - buy • or sell in the open market to stabilise prices. These .functions have-. been interpreted liberally in the ten months of the Board’s existence and it has given support to tiie market on many occasions chiefly when the price of wheat appeared to be approaching; the dollar mark.

By constantly buying to support the sagging market I he Renyci acquired large stocks of wheat and it also held futures.- The virenr, held by the Board was, xt ;is said, transferred to private elevators, which, caused a rapid shrinkage of visible .sup*, plies. .The. .wheat is still there, and the Board will be forc'd to sell sooner or later.

Recent statements by the Chairman of the Board (Mr Legge) have indicated that he would he very pleased to he rid of the whole business, He stated that it was impossible for the Board to maintain prices unless farmers agreed to produce less wheat.; l.t is a triumph for private enterprise, as the new crop is to be handled by the usual trade chamber. Thus another effort to control prices col lapses-. It must be remembered that the Government funds were at the back of the Canadian and American schemes',

and yet they failed because they tried to break through the rigid laws of economy. "

Tne Produce Board, of this Dom.lnion had a somewhat \similar experience, as will be remembered. The Board accepted the scheme almost in toto, suggested we believe, by Mr "VVright who had some experience o; control during the war. New' Zealand butter refused to sell at the price fixed by Mr Wright and the others noting .with him and stocks accumulated and the market collapsed. In spite of this experience and that of the Canadian Wheat Pools and the operations of the Federal Farm Relief Board, strenuous efforts are Ibeing made to engineer a private pool for New Zealand butter. This effort will probably succeed for it is an attractive .proposition to those who want to make money easily, and perhaps it is as well that they learn a lesson from experience.