WHEAT PROBLEM.

Auckland Star, Volume LXIII, Issue 133, 7 June 1932, Page 7

WHEAT PROBLEM.

Exchange Fixation Would Raise Prices. CANADIAN MINISTER'S VIEW. (Received 2.30 p.m.) OTTAWA, June 6. That a very eharp advance in wheat prices throughout, the world would follow the stabilisation of exchange and the solution of the currency question, k the opinion of the Canadian Minister of Trade and Commerce, Mr. H. H. Stevens.

He feels that the world is moving towards such a solution. Only on Monday he received a letter from the Institute of International Commerce at Brussels, to which 20 Governments are affiliated, offering support to any move for an international silver conference. The letter offers the use of the institute's facilities for such a conference.

"All the factors in the wheat market justify very much higher prices than those now quoted," said Mr. Stevens. "Visible stock are down very materially in the United States. The situation indicates a condition in which the exportable surplus will be the lowest in years.

"The Russian situation has very much changed from last year, while neither Argentina nor Australia hae any large amount for marketing."

Mr. Stevens said he believed that the buying countries of Europe have no material stocks in hand, and for the past year have been buying from hand to mouth, knowing that a large surplus in North America would be ample guard against any unusual demand. Xhie factor was now removed since Canadian stocks were much below those of last year.

In no sense, he said, could they be considered excessive. The only thing standing in the way of substantial active buying of grain futures was the economic situation of Europe.

Mr. Stevens, further added that all the factors were present which in normal times would warrant very sharp increases in prices.