SWIFT ACTION.

Auckland Star, Volume LXVI, Issue 158, 6 July 1935, Page 9

SWIFT ACTION.

CONTROL OF WHEAT

Canadian Scheme to Sell

Holdings.

REACTION ON PRICES. [ (United P.A.—Electric Telegraph—Copyright) (Received 1 p.m.) OTTAWA, July 5. A Government bill, creating a Wheat Board to market the holdings accumulated over the past four or five years by Mr. John McFarland, president of the Co-operative Wheat Producers' Association, in a price stabilisation campaign, has been passed by both Houses of Parliament. The bill as passed provides for no . interference with existing grain trade , except in case of its f.ailure to function !in tho interests of the country. The l passage means no change in the policy pursued by Mr. McFarland. The board ( is to be under Government control. ; Also the board will fix a minimum . price, and buy wheat only from • farmers, dividing the profits among them at the end of the crop year, thus abolishing the former Government hedging policy on the Winnipeg market. The Prime Minister, Mr. R. B. Bennett, said he had no idea at the moment what price would be fixed for the initial payment. They must consider world production, European demands, average costs of production and exchange levels." However, the board would not launch a dumping policy to liquidate at "fire sale price" the holdings inherited from Mr. McFarland's stabilisation agency. As a result of this announcement, wheat prices crashed heavily in London and Liverpool owing to fears that Canada's accumulated holdings of 228,000,000 bushels may be thrown on tho market. A sudden bout of frantic selling in Liverpool drove tho price of July futures down by 3d to 4/10J a bushel. October futures closed at 4/11, a decline of 3,Jd. Tho "Daily Mail" City editor says that Mr. Bennett's statement that Canada docs not intend dumping the Canadian wheat surplus failed to reassure Liverpool, where there are considerable doubts as to how forced sales will be avoidable.

MARKET FLUCTUATES.

REACTION AT CHICAGO. (Received 10 a.m.) WINNIPEG, July 5. Tho fear expressed in Chicago that Canada would abandon her efforts to maintain wheat prices at current levels sent futures down to their pegs on the Winnipeg Grain Exchange. Values closed a i to li cents lower for July and August at 80 cents a bushel. Chicago had a 5 cents decline where trade ignored a statement from the Prime Minister of Canada, Mr. R. B. . Bennett, that there would be no sacrificing of the Dominion's grain in the international markets.