MARKETING OF WHEAT.

Press, Volume LXVIII, Issue 20624, 13 August 1932, Page 12

MARKETING OF WHEAT.

OPERATIONS OF THE POOL. ADDRESS AT TIMARU. CONFIDENCE IN DIRECTORS EXPRESSED. (SPECIAL TO THE PRESS.) TIMARU, August 12. The operations of the Dominion wheat pool, and the general position in regard to marketing were outlined by Mr W. W. Mulholland, of the New Zealand Wheat Marketing Board, in an address to South Canterbury growers at Timaru today. Mr L. V. Talbot presided. At the conclusion of the meeting, on the motion of Mr A. E. Dobson, seconded by Mr J. C. Hay, a resolution was carried expressing confidence in Mr Mulholland and his codirectors, and satisfaction with the course they had taken. The resolution stated that the growers were in favour of continuing with the present policy. Mr Mulholland said that this year the Wheat Board had on its books 5000 growers who. accounted for 4,500,000 bushels of wheat of .this year's crop. Approximately 7000 tai* mers were engaged in growing wheat, and they employed an average of three men each, 20,000 breadwinners being dependent upon the industry. He emphatically refuted th o suggestion made in the North Island that if the duties were taken off wheat and flour, bran and pollard would be cheaper, contending that these byproducts would be practically unobtainable. Wrong Predictions. He explained the position in to the 1931 crop and the operations oi the pool. The predictions that the 1931 yield would go into consumption before the, 1932 wheat came on the market and that the pool would be able to return slightly more to its members than free-growers received, had gone sadly amiss. The 1931 marketing season had been one of continuous difficulty. The first had beeu created by the alteration in the sliding scale of duties, which reduced : the. marketing period by a month. This difficulty was not eased by the financial situation. Merchants and millers had had little money tor purchasing, and were not able to buy with customary freedom. A further complication arose in that the consumption of wheat definitely decreased. The drop in feed wheat consumption had probably occurred before it was noticed, with the result that more wheat than was anticipated was carried over till the 1931 season.' When it was apparent that the wheat was .not disappearing as anticipated the . association. ■ did ■ not feel justified in ' putting ■■■■on • the storage increments, which would prevent the wheat going into. consumption. As a result the Board carried nearly half a million bushels into the next season and the Board had to start selling the old wheat at the prices of the new season's crop, which came on to the market earlier. In judging their actions, he asked growers to consider whether there had been any other policy open. If the- directors bad known the facts as they- did to-day there was only the choice between two kinds of policy; first, to have abandoned the market or to take and sell growers' wheat on the day it was offered. To-day if he was faced with the choice he would decide to stand by the market. ... It was certain that the market would have receded much lower than the prices which the association's clients received. Discussing the question Whether the association's policy had been carried out efficiently, the speaker said that if the growers considered the directors had failed them it was their duty to displace them at. the. pending election. Future Prospects. Touching on the prospects of the future Mr Mulholland said that the growers had to consider what should be done with the association. The growers had entered into' contracts which did. not expire until next year, and the association had contracted with the millers, under which a new marketing scheme was introduced. The contract was in abeyance for this year; .and would be next year if the new 'marketing scheme went forward. Hie 1 pointed out that any alterations in the constitution of the Wheat Marketing Board had to be negotiated between the growers and millers. The directors had considered the advisability of keeping the association alive,/and were satisfied that it would not cost the growers anything whatever. .The directors were satisfied' the sacrifices tiro -growers had already made would be sufficient to carry-on-the organisation, which would find its own revenue and also provide an enormous means of strength and safety to members and wheat-growers generally. Mr J. J. Lewis expressed the opinion that the wheat pool had "carried the baby" all the time, and he considered the association should be wound up and the reserve fund distributed among members. Australian Imports., Mr t! D. Burnett, iI.P., said;, that South Canterbury, growers, had beep the hardest hit • in ' the Dominion through the drought and depression;. He asked what enquiries the Board made before agreeing to the importation of Australian wheat. Mr Mulholland' said that when the crops were ripening it'was expected -that the harvest would be unprcceaen'tedly low, but iu North Canterbury this disaster was averted. - Gn statistics obtained through the Electoral Committee it appeared that New Zealand would iust pull through. The floods in South Canterbury upset calculations, and the Canterbury millers within a week had. cleaned up the whole of the harvest, even to fowl wheat, north of the Rangitata. It was evident that it would be necessary to have somo dry wheat to mix with the South Canterbury damaged wheat to make satis r factory flour. After enquiries the Board considered it would be possible to allow 250,000 bushels to be imported, this being the more necessary because the North Island millers did not. get any good wheat at all. The millers then claimed they could not buy wheat at all, but the Board hold up the importations until it was satisfied the Australian wheat could come in safely. Finally the Board agreed to the importation of 500,000 bushels of Australian wheat on an undertaking being given by the millers-that' they would take all-Unliable" wheat in South "Canterbury.: It was. found that 850,000 bushels could be.admitted, and he thought, the millers- had. earned out their undertaking. The Board had done its best to - safeguard growers.

The Board Critlctted. ~ Mr A. J. Davey expressed the view that the Board.had suffered its death-, blow so far as wheat marketing was concerned. He asserted that the directors' statement in the July issue of the "Wheatgrower" was unworthy of them. It appeared there had been juggling with figures to make the position bettor than it appeared. It would hare been better to hare given growers a clear-cut statement. He declared the Board had failed in attempting to hold , the markot price of wheat. He questioned whether the organisation had been to the advantage of _ the pool growers,. and he considered it was. now no longer a sound business or economic proposition to carry it on. He .believed, that if the Board attempted to control' the coming season's wheat it would fail, because the growers would refuse to allow the organisation to do so, in view of past experience. He considered the opinion of pool members should be sought as to the advisability of carrying on the organisation, as the burden was beyond the capacity of members to carry. •'•■■■ Questioned by Mr Burnett. Mr Mulholland/ favoured keeping the organi- : sation at full strength, as it would be in for the..fight of its life before very: long. He would like to see every grower. on-the association and would be prepared to make considerable sacrifices to that end. WHEAT TRADING. CARGOES, PARCELS, AND FUTURES. (•JOTTED PRF.3S ASSOCIATION— IST EDICTBIO TELBGHAPn— COFTRIGHT.) LONDON, August 11. Wheat cargoes arc fully steady, occasionally higher. Futures aro quoted as follows: -London (per quarter)— Aug. 8. Aug. 11. s. d. . s. d. September ... ,2<J 2 2o 8 December ... 25 11 25 o February ... Liverpool (per cental) — October ... 5 62 5 CiDecember :.. 5 7\ 5 6& March ... 5 91 5 7g Spot trade is quiet; Australian, ex ship, 28s 9d. OTTAWA WHEAT CARRY-OVER. OTTAWA, August 11. The wheat carry-over • on' July Slst was 130.9i8.901 bushels, as compared with 134,078.963 bushels in 1981. REAL ESTATE MARKET. WEEKLY REPORT. During the week there have been good enquiries'for all classes of farm properties, but the business recorded, owing to the holidays intervening, has not been so large as the previous week, states a report from the Heal Estate Institute of Canterbury and Westland. Among, sales reported were the following : —Three small . farms ranging from 15 to 50 acres; two of which were as a going concern; one 254-acre property ; one 400-acrve farm j and three residential properties. The property letting market continues 'unchanged, mofet agents reporting their inability to meet the demand lor properties required up to £1 per week, though the range ottering. above that figure continues fairly''good. There have been a few City shops leased for varying; terms- at current rentals. Members of the institute- who-eon-duct an auction business report considerable improvement in the results of recent sales, as compared with those held six months ago. Returns for many classes of goods offered are now much more satisfactory from the sellers' standpoint. A pleasing feature of recent economic conditions has been a considerable- development of the "self help" spirit. Many men whose earnings nave been curtailed have turned their attention to poultry keeping, glasshouse properties; orchard work, or intensive cultivation, with the object of augmenting their incomes, and the enquiry for these classes of holdings has been manifest during recent weeks'. Signs of improvement in the mortgage, situation are not lacking, and undoubtedly a, return of confidence among investors in this class of security will be one of the main factors in ft rapid improvement of the real estate market. As loans are now being negotiated on the current low basis of values, this is undoubtedly an avenue through which those having funds for investment can make a very definite contribution towards the rejuvenation of business by placing their money through the mortgage investment market. It is manifest that the business recently recorded. reflects the willingness of._sellers to meet the new market conditions. COMPANIES REGISTERED. Registration of the following new companies is notified in the current issue of the "Mercantile Gazette":— Dental Import Co., Ltd. Registered as a private company August Ist, 1932. Office, 157 Hereford street, Christchurch. Capital: £2500 in 2500 shares of £1 : each. SubscHpcrs': F. W. Gresham 1000, M.'M. Greshara 500, Ev J. Campbell ,1000. Objects: To I acquire, take over, and carry on as going concern, tbe business of dental importers carried on by the Dental Import Co. .'Glasgow Investment ■ Co.,' Ltd. ••• Registered as. a private company August 4th, 1932. Of-, (ice, 154 Manchester street, Christchurch. Capital": : £3ooo'.' in' 3000 share's of £1 each. Subscribers: Christchurch—A. F. Wright 1500,. R. H. Mitchell 1500. . Objects: To deal in land, buildings, and incidental. Producers' Co-op., Ltd. Registered as a private company August sth, 1932. Office, 219 a Cashel street, Christchurch. Capital: £SOO, in 500 shares of £1 each. Subscribers: Christchurch—H. Worrall 375, W. F. Marsh 125. Objects: Produce merchants and incidental. Tudor Book Company, Ltd. Registered as a-.pmate company August Ist. 1932. Oapitali £200,0, in 2000 shares of,£l each.. Subscribers: Dunedin—J. J. Olark 1000, Joy Clark 1000. Objects: Booksellers, station,ers, printers, bookbinders, publishers, photographic printers, engravers, and rubber stamp makers. . Laban's, Ltd. Registered as a private company August Ist, 1932. Capital: £2500 in 2500 shares of £1 each. Subscribers: Dunedin —Hubert Laban 2490. . Christchurch —F. 11. Laban JO. Objects: Mercers, importers, dealers in textile fabrics and leather goods, clothiers, and general outfitters. ' Reduction of capital:- ■ . Barraud and Abraham, Ltd., Palnierston North, capital reduced from £160.000, in 20,000 shares of £8 each, to £BO,OOO, in 20,000 shares of £4 each. AUSTRALIAN PRODUCE. MELBOURNE MARKET. 1 a'KITEP • MUiSS ASSOCIATION— BX. . EMCTMO TT.LEOBAPn—COPYRIGHT..) . ' (Received August 12t.h,' 10.40 p.m.) MELBOURNE, August 12. Wheat—3? 6d to 3s 6Jd. Bran—£s 10s. Pollard —£5 103. Oats —ls.9d to Is 10£ d. Barley—English 3s Id to 3s 2d. Maize —4s lid. Onions-: —Scarce; firm at 80s. LONDON PRODUCE MARKET. ' . ' tOXDON. August ir.. ■ Flour is-, quietly steady: Australian, .es store, 20si- •' : - •Oats are tending easier.. Peas, and beans are .quiet.

OTHER QUOTATIONS- , Buyers. Sellers. X. s. d. £. b. d. N.Z. Governmciiit Debentures—--44 per cent, inscribed, 1938 .. •• - 96 0 0 4J per cent. Inscribed, 1930 .. .. s>s 5 0 4 J per cent. Bonds, 1938 .... 41 per cent. Bonds, 1941 ~ .. - 96 0 0 5i per cent. Inscribed, 1951 .. ... 99 0 0 SJ. per- cent. Inscribed, 1937 ... .. 98 0 0 5J per cent. Inscribed. 19SC •• .. 98 IS 0 5J per cent. Bonds, 1986 .. .. 98 17 6 5J per >iont. Inscribed, Feb., 1937 .. 10132 6 5J ' per cert.. Bonds, Feb., 1937 .. 101 16 0 5J per aent. Inscribed. Sept., 1937 .. 101 7 6 5$ per cent. Bonds, Sept., 1937 .. 101 10 0

Other Debentures— Christchurch Drainage, 6i per cent., 1965 Piako County, 6£ per cent., 1941 .. Ploasant • Point, 5J per cent., 1941 .. Eastbourne Borough,s2 • per cent., 1952 ... N.Z. Breweries, Bonds 10 0

Miscellaneous— Amalgamated Wireless (contr.) .. .. 0 19 0 Dominion , Builders' Supplies .. ..016 030 Glonmore Brick and Tilo .. .. • Gordon and Gotch .. 1 S 3 Moturoa Oil .. .. 0 16 0 5 0 Milburn Lime ■ .. 15 0 N.Z. Farmers' Co-op. (4J per cent. Stock, 1940 and, 1945) ..40 0 0 N.Z. ' Farmers' Co-op. (4* per cent. Stock, . ' • 1939) .. .. 83 0 0' 47 0 0 N.Z. Paper Mills ... 1 0 8 .1 1 8 North Canty. Co-oy. :■ • Flour .. .'. 011 0 Taranaki Oil .. .. 0 10 Victoria Nyanea Sugar Woolworth.3 (N.Z.), prof. 15 6 1 6 6 Woolworths (new, fully paid) .. .. 15 3

Mining — Alexander (contr.) .. 012 0 019 0 Cornisli Point .. 0 0 2 0 0 8 Golden. Dawn .. .. 0 430 , 0 5 0 .Golden Sands (Is paid) —.. 0 2 4 Golden Point .. .. 0 0 6J 0 0 7 Mahakipawa '.. . ..' 0 0 8$ 0 0 4 • King Solomofi • ■' .. 0 16 018' Mahakipawa (pref.) .. 0 0 4J 0 0 6 Paddy's Point. .. 0 3 0 Okarito .. .. 0 9 0 Wail i ... 015 11 016 3 Waihi Grand Junction 0 2 7 0 8 1 Blockwater .. .. 012 8 018 0 TTaitahu .. 0 0 6 par. disc. YESTERDAY'S SALES. CHRISTCHURCH. Sales on 'Change—- £ s. d. Commercial Bank of Australia ... ... 013 8 New Zealr.rtd Breweries (2) 1 5 3 Colonial Sugar ■ (3) 43 5 0 Mt. Lvell ... (2) 019 6 Golf lon Point ... (4) 0 0 7 Sale Reported—, Bank of New Zealand (late sale, 11th) ... 2 5 3 DUNEDIN. Sale on 'Change-*-. .£ s. d. ; Golden Point. ... ... 0. 0 7 . Sales ReportedBank of New-Zealand ... 2 ii 1) Puion Steam .(pfef.) , 1 0 0 Golden Point ...' (2) :O • 0 71

AUCKLAND. Sales on 'Change—- £ s. d. Fivo and a half per cent. Bonds, 1937 (Feb.) ... 101 7 6 Commercial Bank ... 013 S' 3 0 13'9 Bank of New South Wales 26 15 0 Bank of New Zealand ... 2 5 11. 2 6 0 Union Bank (Melb. reg.) (2) 7 .0 6 Goldsbrough, Mort 1. .3.0. Formers' Trading ... o*4 3 Wilson's Cement ... 18 9 19 0 Okarito ... ... 0 810 Wailii ... ... 016 0 WELLINGTON. Sales on 'Change—- £ s. d. Bank of New Zealand .. 2 6 0 New Zealand Insurance Company .. (2) 2 0 4 Sales Beported — Bank of New South Wales (cum div.) .. .. 26 12 0 Bank of New Zealand .. 2 5 9 Bank of New Zealand, long term . .; ; . 1 6, 9 Commercial Bank of Aus^ tralia (ora.), ex div. .. 0 13-9 SYDNEY. The market yesterday continued most active, with prices very firm. £ a. d. Bank of New South Wales 29 18 6 Union Bank ... ... 7 17. 6 Bank of Australasia (New Zealand delivery) ... 11 0 0 National Bank (£5 paid) 517 0 Burns, Philp ... 2 4. ,6 Millaquin Sugar ... 16 6 Australian Gas, "A" ... 614 0 Australian Gas, "B" ... 614 0 Australian Glass ... 2 1 0 British Tobacco (New Zealand delivery) ... 112 6 Goldsbrough, Mort .... 1 7 0 Goldsbrough, Mort (New. Zealand delivery) ... 1 6 10$ 17 0 Winchcombe, Carson ... 1 2 10$ Dunlop Perdriau ... 013 5 Tooth's Brewery ... 110 9 Tooth's Brewery (New Zealand delivery) ... 110 7£ Toohey'sr Brewery ... 019 9 Henry Jones ... 113 3 Mt. Lvell (New Zealand delivery-) ... ... 119 Broken Hill North (New Zealand delivery) ... 3 7. 0 Broken Hill. Proprietary ... 018 10§ Zinc Corporation ... 19 9 Commonwealth Bonds—r 4 per cent., 1938 ... 99 13 9 4 per cent., 1941 ... 99 6 3 4 per cent., 1944 ... 99 7 6 4 oer cent., 1947 " ... 99 12 6 4 per cent., .1950 ... 100 0 0 4 per cent., 1953 ... 98 7 6 4 per cent., 1953 ... 98 7 6 4 per cent., 1937 - ... 93 7 6 4 tier cent,, 1959 ... 98 17 <\ 4 per cent.. 19G1 ... 99 10 0 MELBOURNE. £ s. d. Goldsbroush, Mort ... 17 0 Metropolitan Gas ... 10 19 0 Bunion Perdriau ... 013 7 Broken Hill North ... 3 7 0 Sulphide Corporation ... 010 4 LONDON SHARE MARKET. •••."."'.'.- LONDON,; August 11. ":, £ sv. d. P. and O. Debentures ... 019 O Mt. Lyall ... ... or 16 6