WHEAT QUESTION

Press, Volume LIV, Issue 16273, 25 July 1918, Page 7

WHEAT QUESTION

DISCUSSION AT FARMERS' UNION. 7a PER BUSHEL WANTED. At the meeting of the North Canterbury Executive of the Farmers' Union yesterday, over which Mr W. H. Banks presided, the shortage of wheat in the Dominion was referred to. The following resolution of the Cabinet was received by telegram from the Hon. W. D. S. Mac Donald, Minister of Agriculture:— "Re 1918-19 wheat crop. Decision arrived at by conference in Chriatchurch in April to be adhered to, viz., minimum price for all grades 6s 4d per bushel with free market. Trust those growers who have suitable land will put in aB much spring wheat as possible. It is very desirable that tne country should grow sufficient wheat for its own requirements.—W. D. S. MacDonald." Mr Horrell, in reporting on the conference which had been recently held in Wellington on the wheat question, said that it had been stated at it that there was an undoubted shortage of about two million bushels. Tho conference had definitely advised the Minister and the Government to purchase at least three million bushels of wheat. Tha Government had purchased two million bushels from Australia, as had been published in the papers. As rogards next season, there would be a greater shortage still, and he understood that a suggestion had been made b.y the Farmers' Union that farmers having suitable wheat land and who did not use it for wheat-growing, should be compelled to do so. Most farmers were doing their bit, but there were a few glaring cases,' and he fully agreed that such men should have compulsion applied to them. He considered that it was too late to do anything in tne way of compulsion for this season, but for the subsequent harvest, it might be possible to do something of a compulsory nature. But before any regulations were mado it would be advisaole to form a committee or board of farmers to decide what land and what area should bo used for compulsory wheat-growing. If Ihe allocation of areas was not made by practical men who thoroughly understood the conditions, it would result in chaos, and the situation would become absolutely un- | manageable. A gravo difficulty had arisen over the wording of tho Government's offer, "6s 4d a bushel and a free market." Ho thought tho definition given of the words "free market" by the farmers was very different to .hat i held by the Government. In thej farmers' minds it was apparently open to them to hold wheat if they thought fit to do so—the market was "free"— but lie considered that the Government should be asked straight out what it meant exactly by the words "free market." He had asked tho Minister to define exactly what the Government meant, but had not received a satisfactory explanation. Ho had made it clear to the Minister that any 10mpulsory regulations made for the growing of wheat and oats should be applied both to the North as well as tho South Island, and that Canterbury should not bo the only province in which compulsion should be used. Mr G. W. Leadley said it waß exceedingly important that the farmers should Know exactlv what was meant by the words "free market." It would iriako a groat difference to the attitude of the formers in going into wheatgrowing. Tho chairman said the Minister had already stated that if he flooded tho country with Australian wheat or flour, tho market would not be a free one for the farmers.

Mr Horrell, in answer to a question, Baid he believed that with a free market there was no bar to any wealthy firm buying all the wheat and."cornering" it. He understood that some firms were already making preparations to buy large quantities of wheat. Mr Leadley said any such action would be an obvious and gross abuse of the position, and in this case the Government would be justified in stepping in and acquiring all tho wheat. All the farmers wanted was a fair remunerative price for their wheat: they did not want an excessive price or exorbitant profits. Mr Bates said he thought the Government should be the solo purchaser of the wheat at the price mentioned vp to 6s 4d*per bushel. Mr Horrell: "But that would not be a free market." Sir.'James Allen had stated to him that the man who was growing wheat was as valuable to the cfluntiy as the soldier at present, and the Minister asked for any specific instances of wheat-growers being taken for military service. Did . the meeting know of any such cases P He, die speaker; Baid he could only bring ap one rather unimportant case. The Minister wanted to know whether it was the' shortage of men or the price which was causing the farmers to cease outting in wheat. The chairman and several others present said that both causes were operating in creating the shortage. Sir Horrell said tho fact was that the Government was at its wits' end to know what was the best thing to do. Mr Mac Donald had asked the farmers to make any counter-proposals, and it had been suggested that 7s per bushel should be the price, 'with Government control. This was what the Australian wheat cost to land. . t The chairman said the Minister s S roper procedure, when he found out e could not carry out his first srrangemeht with the farmers, was to caJl anolher meeting and confer further with the farmers. r • Mr Bates asked Mr Horrell to speafc plainly regarding the pressure that aad been 'brought to beaf on the Government from financial interests. Mr Horrell said the interests were tho same as when the war broke out. Some firms attempted to corner tfco New Zealand wheat supply then and failed. They now considered that, though under present conditions they had not made much out of the .farmers wheat, with a free market they eouid exploit the market. Sir Bates said that if there was any attempt on the part of speculators 10 corner wheat in New Zealand, the Government should step in and deal sternly with it. At thft stage Mr J. A. Frostick, Canterbury Commissioner on the National Efficiency Board, waited on the executive and the meeting went into committee to consider information which he had to lay before it. On resuming it was resolved: Inat this meeting approves of the action of its representatives in conference with the Minister in asking for an average rate of 7s per bushel, with Government control, this being the price at which wheat can be landed in . New Zealand from Australia." A committee was set up to draft a telegram to send to the Minister.