The Daily News. WEDNESDAY, JULY 25, 1917. THE AUSTRALIAN WHEAT DEAL.

Taranaki Daily News, 25 July 1917, Page 4

The Daily News. WEDNESDAY, JULY 25, 1917. THE AUSTRALIAN WHEAT DEAL.

Sow that the< country lias been furnished with a statement by the Minister of Agriculture relative to the purchase of a million bushels of wheat in Sydney at five shillings and sixpence per bushel, it is possible to review the matter in the light of facts, and though the process will not result in placing the transaction in a favorable light, it is as well to show how New Zealand lias lost over the bargain. It will be remembered that when the war first broke out the Dominion -was caught with a shortage of wheat and flour and that it was deemed necessary to obtain a supply of wheat from Canada, and the experience then gained should have proved useful when negotiating with Australia, for there is no question that the Canadian transaction was one that placed New Zealand at a great disadvantage. Unfortunately this Jast deal again demonstrates the lack of astute business methods on the part of the Ministry and we have bought at too high a price. Admitting !Jijt it was nC-ceasary to have to go overseas for our wheat, there was all the more need for making the best possible bargain i>y adopting commercial and not ministerial tactics. There is ewry probability that the settle™ in Sydney were quite alive to the fact that a New Zealand Minister had gone there to buy, and they cannot be blamed for serving their own interests. If an Australian Minister came to New Zealand to buy meat, butter, cheese or any othei of our staple products he would receive just the same treatment as was meted out to our Minister in Sydney, but in all probability the Australian would not have -been foolish enough to adopt such a course, preferring rather to put the matter into the hands of a reliable broker who would quietly obtain -what •was needed at a satisfactory figure. The outstanding peculiarity of the deal is that whereas wheat was secured at Ss 6d f.0.b,, yet had flour ibeen purchased there would have fceen a saving of sixpence per bushel. The flour was oifered at twelve guineas a tqp, which at forty eight bushels to the ton of flour is equivalent to -five shillings a bushel, so that the magnitude of the loss is apparent. There is also the tact that it was only export wheat on which the price was raised, for the Sydney millers are even now only paying four shillings and six pence for milling wheat, enabling them to sell flour at eleven pounds per ton. What seems to be a mystery is why the offSr of flour was not accepted in lieu of that of -wheat. Apparently the reason would rather be political than commercial and so the people have to pay accordingly. An interesting sidelight is, moreover, thrown on the transaction by the necessity for the appointment of a trustworthy Canterbury wheat grader to see that the quality was right, so that it is evident the Australians were out for profit making and needed keenly watching. It is quite conceivable that our Government did not much relish having to disclose the fact of [New Zealand's wheat shortage. The area under wheat in 1913-14 was the lowest for any year since 187G, the southern farmers having suffered three bad seasons running and the growth of the dairy industry with its profltaibie returns caused dairy farming to be substituted considerably for wheat growing; and then came the war, with the consequent need for importing wheat from Oanada. The lesson, for which the country has had to pay rather dearly, is one that should not readily be forgotten, At present k the Government is relying on the patrio-

tism of tlic agriculturists, plus a stimulant in the nature of a promise of £vc shillings and ten pence per bushel for all wheav produced, but it is obvious that tlie interests of the country require that there shall be at least sufficient wheat produced to supply needs, and if the southern farmers will not grow the requisite quantity then the Government should take the matter in hand in a practical "way with a view to meeting the demand at a price within reason. There are certain areas in the Dominion particularly suitable for wheat growing, just a» there are other portions specially adapted for dairying, and it in the economic struggle that will follow the war New Zealand is to do her part loyally and thoroughly, there must be a systematic organisation so as to ensure the most satisfactory results. We have had our lesson and should take it to heart in a practical manner. Wheat is a prime essential awl as such should be cultivated on an adequate scale, even if a Government subsidy is needed, for attaining the end in view. The purchase of overseas produce is neither profitable nor politic, especially under such circumstances? as'"have marked the two transactions during the war.