THE FARMERS AND THE WHEAT “BEARS”

Waikato Argus, Volume IV, Issue 259, 15 March 1898, Page 4

THE FARMERS AND THE WHEAT “ BEARS”

VICTORIAN WHEAT-GROWERS’ COMBINATION.

Skldom has a movement among the farmers been taken up with equal spirit and determination as that now in progress in Victoria in connection with combatting the wheat "bears." The complete harvest returns for Victoria show that not more than about 100,000 bags of wheat-can possibly be exported over and above the quantity required for local consumption and seed. The prospe:t of the wheat market being so good, the farmers were advised not to rush their wheat on to the market, but to hold off and thus prevent the cornering of their hard-earned produce to the enrichment of a few large operators; this advice was followed, with the result that a struggle has set in. At first it was beliesred that the sellers would not be able to hold out; but a happy idea struck one of the leading farmers, viz., that each grower should agree to contribute 10 per cent, of his wheat for immediate shipment, and by this means clear the colony of all wheat over and above that required for local consumption. The idea caught on like wild-fire, and the reaponse of the farmers has been nothing short of enthusiastic. Arrangements have been made through Goldsborough, MortandCo., who undertake to ship and insure all consignments at 17s 6d per ton, and to make a cash advance of 12s per bag to the growers immediately upon consignment. The movement is spreading through all the wheat-growing districts of the colony, and it is anticipated that a sufficient number of farmers will very soon be found to make up, on the 10 per cent, basis, the whole of the 103,000 bags surplus. Of course, the local millers, together with the wheat " ring " sympathisers, are affecting much indignation, and oratin" in strong terms about the injury to the consumer, etc., but it is noted that nothing is ever heard about the interests of the consumer when the "bears" are allowed to get on quickly with the work of " cornering " the crop for the sole advantage of a few, instead of the large majority who produce the wheat, and reckon that they have the best rights to its profits. With the surplus out of the way the value of wheat this season in Victoria, plus Is 9d per bushel protective duty, should rule at from 6s 3d to 6s 6d per bushel, and even at that price, upon fair milling rates, the price of bread should not fairly be very ranch higher than it is at the present moment. DANGERS TO BE AVOIDED. Commenting on the situation, the Leader (which paper is strongly supporting the farmers in their determination to secure control of the market) says : And now it can be said that the movement is assuming the appearance of being eventually successful. Hitherto the speculators have been in the habit of regarding any attempts to organise the farmers with ill-disguised contempt, but now they are becoming seriously alarmed. Early in the year, when engaged in bearing the market down, the cry was "there is a heavy surplus." The object now being to discourage the farmers' movement, there is a change of cry, and the farmers are asked to believe that there is no surplus at all. This, of course, is intended to demoralise, if possible, the shipping movement, and of all these inventions of the enemy the farmer must beware. Another danger is that now a certain number of fanners arc agreeing to ship, it is quite probable that as soon as wheat goes up again towards 5s a bushel many will be inclined again to rush the local market, and of course if they do, down will go the price again. Let every wheat grower colony stand loyally by Ins fellows in this shipping combination, and then he will be safe. Otherwise he will do mischief, not only to all the growers in every other part of the colony, but to himself, and this latter is a point that he may rest assured of. As soon as 100,000 bags are got rid of by shipment, the balance, amounting to 1,650,000 bags, will have added to its value not less than an extra 2s per bushel. The lowest rate at which wheat can be imported into the colony, taking the duty into account, is 6s 3d, therefore, with the control of the market in their hands, the farmers can add to the balance left, that is, 1,650,000 bags, a clear extra profit of 2s a bushel, which aggregates a total sum of £660,000. One speaker at a recent meeting said ho would not complain if he could get 5s a bushel, and that he did not wish to force wheat up to 6s 3d against the consumer. As will be seen by looking into the question, however, it is not a matter of whether any individual is satisfied with 5s or not. Wheat this season will reach the higher rate in any case. If a number of farmers again rush the market when it gets up in the neighbourhood of ss, then the speculators will secure the higher figure, and the sellers will find that they have not only uselessly thrown away from Is to Is 3d a bushel of the value of their own wheat, but also helped to bear down the market against every other grower in the colony as well. The whole matter resolves itself into this short point: If the farmers refuse to go on to the local market, and strictly confine themselves to shipping 10 per cent, of their crop until 100,000 bags are got out of the colony, then they will secure an extra sum of £666,000 on the balance. If they do not stand by their own combination, then they will simply put that £660,000 into the pockets of a fewspeculators instead. Another reason why every wheat grower should determine to support the combination is that the success of the present movement will ensure greater successes next year, and thence on in the future. A Mr .McGregor, one of the promoters of the combination, believes that in future, under a complete organisation of the farmers, it would pay them always to ship their wheat themselves. He had proved this by shipping all his own wheat, aud in addition to doing well in the price, had found that the wheat on its way to London increased in weight to such a decree that the increase in weight alone had gone within 2s Od a ton of paying the full charge for freight. This, he submitted, was one of the profits that wheat buyets had been in the habit of adding to their other perquisites as wheat shippers. PROSPECTIVE CO-OPERATIVE DEVELOPMENTS. Au important point was submitted to a recent conference by Mr Gordon, of Shepparton, in connection with the profits to be derived from co-operative milling, and his proposition that the Coulbourn Valley farmers should join together to convert their own wheat into flour was received with so cordial a response as to suggest that this aspect of co-operative effort is beginning to be seriously considered among thinking men of the agricultural community. In connection with this, some suggestive matter was placed before the conference by one of the speakers, who clearly demonstrated that the millers, who were at present buying wheat at 4s 3d a bushel, were selling flour at £ll 10s per ton, which was the corresponding trade charge under fair conditions when wheat ruled at 5s 6d. In this way it was shown that on the regular basis of 46 bushels of wheat and 36 bushels of bran to the ton, and allowing 20s per ton for manufacturing and 10s per ton clear profit, the millers were at present getting advantage of the producer to the extent of Is 3d per bushel on his wheat, and at the same time overcharging the consumer by ill per ton for his flour, which £2 per ton extra charge for flour is at the rate of four additional profits over and above the fair one of 10s per ton. These points were carefully noted for use when in the inevitable course of affairs, the cry of " deal- bread " will be

raised by the speculators and their friends as soon as the millers, in the event of the farmers' combination being successful, have to pay to the producers the full value for their wheat. Another very important feature of the cooperative movement was dealt with by another farmer, who outlined the financial aspect of the question on the basis of the Continental agricultural banks system A means of coming to the assistance of growers in the future, so as to ensure the holding of wheat by farmers who hitherto had been pressed to sacrifice their crops early in the harvest, was recognised as indispensable in a properly worked co-operative system, and these suggestions all point to future possibilities of development in connection with this important movement, which is now in the farmers' own hands to make a success of this year, in order to grow to larger and more useful proportions next season.