THE WORLD’S WHEAT

Dominion, Volume 19, Issue 121, 16 February 1926, Page 7

THE WORLD’S WHEAT

PRODUCERS’ PROBLEMS EFFORTS TO STABILISE MARKETS ADVANTAGES OF POOLING SYSTEM The discussion of the problems which the wheat producers of the world face in the effort to stabilise the markets has been revived by the arrival in Canada of delegates to the wheat conference. It is expected that within five years the United States will consume- all its own production of wheat, and that the world’s greatest growers will be Canada, Australia, and Argentina. By Telegraph.—Press Association. Copyright. Winnipeg, February 13. The arrival of Mr. McDonald and Mr. Reesdale, en route to the St. Paul Wheat Conference, has revived the discussion of the problems which the wheat producers of the world face in the effort to stabilise the markets. It is pointed out that on the basis of Mr. Hoover’s prediction within five years the United States will consume all its own production of wheat, that the world’s greatest wheat growers will be Canada, Australia, and Argentina, and any effort of the first two to establish a system for the regulation of wheat production into even channels of supply would, through its economic weight, assure the adherence of the third country. Those in close touch with the wheat markets favour plans based on principles somewhat similar to those of the Stevenson rubber scheme. They insist that a world pool would not be created for the purpose of raising prices to exorbitant levels, and point out that ten years with wheat at 125 or 150 cents a bushel is preferable to eight years with wheat at two dollars, interlarded with a year at 95 cents and a year at 88 cents. An even price tends, they say, to the stability of wheat. Mr. McDonald, commenting on the situation as it concerns Canada and Australia, said: “We wish to prevent selling in opposition to one another, and with an organisation which will _ make a survey of the world markets circumstances adverse to the good of the producer can be avoided. It is the desire of the promoters of this system to be able to feed grain to the world’s markets when it is demanded, without a cut-throat system of competition.” Mr, McDonald acknowledged that Canada’s pool system was better organised than Australia’s, and intimated the desirability of an Australian pool to supervise .the greater portion of the supply of wheat. After the St. Paul conference, Mr. McDonald will make an intensive study of tlie North American pool system, and will probably take six months on the investigation.—Aus.-N.Z. Cable Assn.