GREAT WHEAT GLUT

Hokitika Guardian, 2 September 1931, Page 2

GREAT WHEAT GLUT

IN UNITED STATES. [United Press Association. — By Electrie Telegraph.—Copyright. J WASHINGTON, August 31. Asserting that if the winter wheat planting is immediately decreased by fifty per cent., that the wheat stocks would be brough to normal in two years’ time, Mr Carl Williams, the Acting-Chairman of the Unitea States Farm Board, has repeated the Board's refusal to continue,,its stabilisation wheat purchases. He stated-: “The Board for two years has cushion ed the American farmer against price declines, and has accumulated a store of wheat which is virtually frozen. Stabilisation purchase is valuable in the face of temporary surpluses, but not in the face of continued over-pro-duction, which, in the case’ of wheat has continued for six' years. The only remedy is the reduction of wheat production.” Mr Williams lias refused to state the Board’s present wheat [holdings, but reliable estimates phloc the figure at over two hundred miiloii bushels, despite the recetit trade With Brazil, for coffee, of twenty-five inillitiii bushels of wheat, which, ill turh has Caused much unfavourable argument in the circles effected by the change. in the situation on the Brazilian markets, Mr Williams asserted that the wheat now growing, combined with 319 million bushels of a carry-over will cause the total supply this autumn to reach 1213 million bushels, or a “two-year domestic supply,” with very little wheat being exported.