THE WORLD'S WHEAT.

Ashburton Guardian, Volume XLVI, Issue 10670, 15 February 1926, Page 5

THE WORLD'S WHEAT.

STABILISING OF PRICES. CONFERENCE IN AMERICA. AIMS OF THE PROMOTERS. (Per Press (Received This Day, 10.2$ a.m.) OTTAWA, February 14. The arrival at Winnipeg of Messrs McDonald and Reesdale, Australian delegates, en route- to the Wheat Conference at St. Paul (Minnesota), has revived the discussion in Winnipeg regarding the problems which .the wheat producers of the world face in the effort to • secure stabilisation of markets. It is pointed out that, on the basis of prediction by Mr H. C. Hoover (United States Secretary for Commerce), that within five years the United States will consume her own production of wheat. The world's greatest wheat-growers will be Canada, Australia, and Argentine, and any effort of the former two to establish a system for the regulation of wheat production into even channels of supply would, through its economic 1 weight, assure adherence of the third country. Those in close touch with the wheat markets favour plans based on principles somewhat similar to the Stevenson rubber scheme. They insist that a world pool would not be created for the purpose of raising prices to exorbitant levels. They point out that ten years' wheat at 125 or 150 cents a bushel is preferable to eight years' wheat at two dollars, jnterlarded with a year at 95 cents and a year at 88 cents. They emphasise the fact that an even price tends to stability. Mr McDonald, commenting on the situation as it concerns Australia and Canada, said: "We wish to prevent selling in opposition to one another, and to form an organisation which will make sure that world market circumstances adverse to the good of the producer can be avoided. It is the desire of the promoters of this system to be able to feed grain to the markets of the world when it. is demanded, without the cut-throat system of competition."

Mr McDonald acknowledged that Canada's pool system was better organised than that of Australia, and he intimated the desirableness that the Australian pool should supervise the greater portion of the supply of wheat.

After attending the St. Paul Conference, Mr McDonald intends to make an intensive study of the North American pool system.