NEW ZEALAND “STUNG.”

Manawatu Herald, Volume XXXVII, Issue 1490, 28 December 1915, Page 3

NEW ZEALAND “STUNG.”

IN WHEAT PURCAASKS. 900,000 BUSHELS STILL IN CANADA. The following paragraph is republished in the Auckland Star from the Montreal Star ; Ottawa, Nov. 3. When the Government of New Zealand went into the business of buying wheat in Canada it got “stung,” In plain language this appears to be the outcome of the transaction. A million bushels wen* ordered, and 900,000 o( them are in the Montreal elevators still. The balance has been shipped. The unfortunate part of the affair for New Zealand is that it paid a high price, and that since then the market has fallen. And while the wheat bought on the account of that Government is still in store in Montreal, this season’s crops in New Zealand are large. The order, executed through Government circles here, came last winter, and was for a million bushels. The price paid was around 1 dollar 50 cents a bushel. The grain was to be delivered in the spring. It was delivered. The shipments were to be at such times as New Zealand desired. It asked that 100,000 bushels be sent over, and they were sent. As to what is to be done with the balance, it is up to the Government of New Zealand to say. It is their grain bought on their instructions at the rate then prevailing, and whatever disposition they desire will be made of it, but no instructions have come lately. The freight rates are high, and with a big crop prices have gone down to the extent of about half a million less than was paid for the consignment. As* far as the authorities here are concerned,, they simply carried out the request of the New Zealand Government, and though the Investment or speculation turns out unfortunate, the blame, it is stated, is not upon them.

PREMIER’S EXPLANATION

The Premier, ?hown the Montreal report, stated that it was quite correct that grain in the elevators, totalling a million bushels, was bought as a precautionary measure. Only 100,000 bushels were shipped, and then the drop came on account of the American wheat prospects and the possibility of the Dardanelles being opened. The Government was not disposed to realise at a loss, and made arrangements with the Canadian Government to hold the wheat till a suitable opportunity offers. It could be sold to-day, but the price is the question. By an extraordinary coincidence, while the Premier was speaking, he received a cable from Canada stating that wheat was now i dollar 20 cents. “ Thus,” he said, “we would not loose much if we sold to-day, but the Canadian Government is doing its best for us, and we shall lose very little.” Mr Massey added that the ,£90,000 vote in the last Estimates was for deposit on account of this purchase and the payment of outstanding accounts on the previous purchase.