THE WHEAT PURCHASE

Dominion, Volume 10, Issue 3096, 29 May 1917, Page 8

THE WHEAT PURCHASE

A MILLION BUSHELS TRICE NOT STATED "The Hon. JV.~ ti. S. Mac Donald, who .went'to Australia early in. the presont inontiv to purchase wheat to make good tlieV shortage whjch, is oxpectod to deVDlop/in. this country beforo the harvesting of next season's orop, informed a 'Dominion reporter yesterday that he lad been successful in completing a purtliaso of a million, bushels, and had : mado arrangements for. tho .shipment of. :f he wheat; io New 'Zealand. -- Mr. MaoDouald would taaka no statement as to tho ! price at which the purchase had •been made, ■ Ho said,.however, thaj; ho had bought corn from tho 1915-16 harvest, this being,, the bert wheat obtainable in tho Commonwealth at present. In an official statement made ko the Melbourne "Argus" on May 17, tho Prime Minister of- tho Commonwealth (Mr.-W. M, Hughes)- said that tho amount of the purchase was 1,500,000 bushels, and that the price was .to be ss. 6d. per bushel not, f.o.b. ' Mr. Hughes's statement continued as follows:—"The New Zealand Government Jias undertaken , to provide the shipping, and pay for the wheat, whether- delivered, or not, by the end of Augußt. The — ordinary price fixed by. the Australian Wheat Board for wheat for New , Zealand is ss: 7d. a bushel, with.an'allowanco of ■ one per cent, to the selling agents. The sale at Ss. 6d. net is equal to a sale at ,ss. 6 2-3 d. a bushel effected in' the ordinary way. In view of the present . shortage of shipping, the board is extremely gratified at having been able to mnko so fine a. sale on behalf of the pool.: Tho New . Zealand Government has also an option of. purchasing, 1,000,000 bushels more." Mr. Mac Donald stated last evening that the amount he had purchased was 1,000,000 bushels. In more ways than one the possession' of. so much wheat has already becomo'a cause of concern to the Common- j wealth Government. . It has happened j that Australia hue-had- phenonienal harvests since tho war, and there did not exist in the country th« stofase.accommodation for such vast quantities of grain. In suitable granaries wheat may bo kept without serione risk for almost" an indefinite period, but great quantities of wheat in Australia is pUed in sacks TWit to Tailway stations.. The tops of the stacks are covered, but the sides arc fcjci>osed to weather, and. tho wheat ie open to the ravages of inioo and other vermin. ■ Reports are that ii great deal of damage has been.-done by weather, mice, and Weevil. Australia

wants lo quit this wheal a great deal l&ore quickly than at presbnt wonis possible, but tho ships ave not in sight, to tako. it to Europe, wbcro it is badly wanted. .The Government line been eonaucliijg- negotiations with-America, with the object o£ inducing America 'to take some of tlie Austialian wheat, on tho understanding that the States would export, to llto United Kingdom a corresponding amount <>( American wheat, lilts arrangement hag not been consummated yot,