WEALTH IN WHEAT

Hokitika Guardian, 24 December 1932, Page 3

WEALTH IN WHEAT

AUSTRALIA’S RECORD CROP,

ABOUT £22,030,C00 IN VALUE.

SYDNEY, December 15.

The latest oflii-iai estimates give New South Wales a record wheat harvest t.ijs year of nearly 70,030,603 bushels, and the Australian yield is likely to be in the vicinity or 212,00.1,030 bushels. Although prices will be lower this year than last, the total return will he considerably larger than la,-It year. Aw it-ralia*s cheque i.s likely to be £22,000,0.0, and of .that smte £7,000,030 will come to New South Wales. The effect of • the' Dor-r-d harvest is to he seen an. the enormous traffic tliat is being handled by the New Son :h Wales railways. 'On Monday a record number of trucks wars handled at the Sydney silos—6B2, against the previous record of 636 for one day. The golden grain is streaming in from the outback to the metropolis, and some cf the country silos are already full. The gjrmfc wheat harvest will have a.n imp oh ant bear i no- on railway finances.

It is notable, too, that more than 26,000 halos of wool have been brought to Sydney this year, compared with last. The freight business has been so heavy this month that on Monday last 4213 trucks were needed to cope with jt. The previous highest loading of trucks oil any one dry was in December, 1928, and that was before the '.leprcTl'on. Doers nTjl this point to the fact tliat the State has definitely turned that corner to which so many politicians have constantly referred during the past two yeans ?

MARKETING DIFFICULTIES

It is recognised that as far as wheat i.s concerned marketing difficulties are likely to he greater this year. However, hones are held out that the Ottawa preference of 2s a bushel will be beneficial, but it is considered that there is lithe chance of a permanent price improvement while the world generally has sf large surplus of wheat. The position is being watched with the closest- interest, but 1 it is some consolation to know that with the larger yield (the net return will at least be as great as last year, and possibly greater. It i !s a remarkable fact that the last three seasons in Australia have favoured growers. It is a- paradox thaft so many wheat farmers have been unable to make a, lir.iancial success of their undertaking, and that the Federal Government should have been called upon to devote practically- tile whole- .of its surplus, which otherwi e would have been usc-d for taxation relief, to their assistance. The money, however, will he used, it is hoped, to prepare for the next crop. A farmer depending en- l tirely on wheat finds it difficult to carry on from one season to another when prices are not more in keeping with the cast of production.

PROBLEM OF COSTS

The whole problem.gets back to that of costs. Railway freights are high because .railway working costs are high. All other costs associated with the industry are in keeping, and practically nothing has been done tq reduce them to a level in keeping with the general trend of events. The Federal relief grant to the wheat men is a .palliative, and not a cure for their troubles. Much of flip money will be in the form of a rebate on freights. Actually the money will pass, from the Federal 'Government to the State Governments.