WHEAT GAMBLING

Hokitika Guardian, 23 September 1930, Page 8

WHEAT GAMBLING

SOVIET’S BE All TACTICS. ON CHICAGO MARKET. WASHINGTON, September 19. Mr Hyde (U.S.A. Secretary for Agriculture) following on a conference with President Hoover, despatched a message to President Bunnell, of tin Chicago Board of Trade, asserting: “Inquiry has revealed heavy shortselling of wheat on the Chicago market by the Russian Government. There is no question this has contributed to the fall of the price of wheat. Obviously it is impossible for the Soviet to deliver grain in Chicago over our tariff of forty-two cents per bushel. I would be glad to know what provisions your exchange can make for the protectio'n of the American farmers from such activities.” Mr Hyde has indicated that an end has by no means been yet reached in the Agriculture Department’s investigation which has been prompted by newspaper charges that the Soviet lias sold fifteen million bushels of wheat on the Chicago futures market for the purpose of breeding discontent among the American farmers.

Mr Hyde said that he had discovered no actual wheat deliveries on the Russian futures trading, and it was his Department’s opinion that, no deliveries were intended to be made from the start, but he pointed out that the bare knowledge of the Soviet sejliiig short in America would have an immediate psychological effect on the prices in the United States.

The Chicago Board of Trade experts are agreed that there is no bar to any foreign country hedging in wheat, which is an open practice here, and is fully legitimate, unless it is based on improper motives. The representatives of the Board of Agriculture declined to state whether, they believed that. the Soviet’s motives are questionable. It is generally believed that the Soviet has sold short a total of fifteen million bushels, including Canadian wheat, and it is reported that the Soviet, in order to attain her ambition to compete with the Canadian, American. and other grains, is exporting so much of her present crop that threats of starvation are arising in Russia these" being due to the loss of wheat which will serve to pay for the American machinery to be used for larger crops in future. President Bunnell assured Mr Hyde that he would conduct immediate investigations into the Secretary’s, charges

THE SHORT SALES

FIVE MILLION BUSHELS. WASHINGTON, .September 20. Mr Hyde (U.S.A. Secretary of Agriculture), has made public the telegram that he despatched to Mr John Bunnell, the President of the Chicago Board of Trade, charging the Russian Government with partial responsibility for the latest record depression of wheat prices through the speculation on the Chicago exchange. Mr Hyde said that the short-selling of as much as five million bushels had been admitted by the All Russian Textile Syndicate at New York. Mr Hyde made this announcement following on the conference with President Hoover. In Chicago, Mr Bunnell said that he had no definite information about the Russian selling. Mr Hyde asserted, that, obviously, it would he impossible for Russia to give delivery of grain in Chicago over the United States tariff of forty-two cents per bushel. Some observers think .that the. Russians will suffer heavy losses as the result of their, speculations. NEW YORK, September 20. Mr E. Y. Beljtzky, the Vice-Presi-dent of, and Treasurer of the All-Rus-sian Textile Syndicate said on Saturday: “The'Syndicate had sold wheat short in Chicago on orders from Russia.” He added that these sales were intended as a usual’hedging operation, and were relatively of such small quantity that they could not appreciably affect the standard prices. NEW YORK, September 20.

At Chicago the grain prices rose and fell to-day in accord with the alternating developments with regard to charges that the Russian Government is disorganising the market values by short selling. After a hesitant start, wheat jumped 2 o-8 cents per bushel, this being responsible to the word of moves to halt and such action as was taken by Russian agents. The late weakness of wheat was simultaneous with Air Bunnell sending a telegram to Mr Hyde that Chicago has the recognised world market, where the hedging' and protecting of grain all over the world in all positions is customary. The closing quotations were never at an actual rally from to-day’s bottom figures, and were from unchanged to a half cent lower than yesterday’s levels.