SUPPLY OF WHEAT THE GOVERNMENT PROPOSALS

Evening Post, Volume LXXXIX, Issue 32, 8 February 1915, Page 11

SUPPLY OF WHEAT THE GOVERNMENT PROPOSALS

In addition to his remarks on t.he wheat market reiwt in Saturday's Post tho Prime Minister has made tho following statement :• — "Judging by tho present outlook," said Mr. Massoy, "the position at the Ist of March next will be that, including the wheat arranged for in Canada by the Government and that already on the way to this country, thoro will be approximately six and a-half million bushels in sight. It is scarcely necessary for me to say that the prohibition of export from New Zealand will continue, and that tho duty will be remitted on flour and whe>t in the same way that has been followed since the outbreak of war. "It is very unfortunate that there should be a scarcity both in Australia and New Zealand during the war period, but I am fairly confident that matters will improve rather than otherwise, and that the worst of the inconvenience is over. It will be the duty of the Government, through its officers,, a.nd j particularly the "Registrar-General's De- I pai'tment, to watch the position very carefully and regularly, taking particular notice of the supplies in hand, and of the amount held by any firm or individual, so as to prevent anything in the way of hoarding for exploitation. And I may just as well say here that, while we consider fair trade and fair profits should be allowed, the Government will not tolerate any hoarding up or cornering with the object of bringing about an increase in price. It is only right to say that we have had very little fault to find in this latter respect, in spite of rumours to the contrary, but it is just as well that I should, at this juncture, with new wheat beginning to come in, strike a note of warning for the benefit of those concerned. RESTRICTIONS REMOVED. " As the new season's wheat will soon be available, the Government has reconsidered the position in accordance with its original intentions, a.nd In what it believes to be the best interest* of all concerned, has decided to remove the existing restrictions on the sale of wheat. Tne producers are entitled to the fair market value of the article they i-aise, and to pay them less than this would be to confiscate part of their earnings and discourage the cultivation of wheat in the future. Care will, however, be taken to see that no exploitation takes place, and that prices are not inflated for speculative purposes. By arranging for the importation of a large quantity of wheat, the Government to a certain extent regulates the market and prevents anything in the way of a panic or speculative prices. FURTHER SUPPLIES REQUIRED. " Relying on reports received from field inspectors of the Department of Agriculture in the wheat-growing districts, it was estimated in December that the total production of the harvest would be 4,620,000 bushels. Since then, however, reports have been received indicating that there has been considerable improvement in the wheat crops, and that the yield will probably be considerably better than was anticipated. Assuming, therefore, that the harvest will yield not less than 5,000,000 bushels, and taking into account the 1,000,000 bushels which have been purchased by the Government in Canada, and which it is anticipated will probably come to hand about September, it is estimated that wheat stocks in New Zoriv-:v,d will be exhausted prior to the harvest, of 1916. "As previously Btated, however, it would be inadvisable to allow the wheat stocks in the country to get too low, a it! ou the present particulars it would appear that further supplies would require to be arranged for so as to be available in January of next year. It must be remembered, however, that this estimate is based on the assumption that the present harvest yield will be 5,000,000 bushels. Should it be more or less, the estimate would have to be modified accordingly. GOVERNMENT AND PRICES. "The importance of keeping in close touch with, the production has been recognised, and arrangements have been made; beginning with January, to obtain monthly returns of wheat threshed from all threshing mill-owners throughout the Dominion. Returns will also be obtained from the Railway Department as to the movement of wheat on Government railways. It is hoped that with these returns, as well as the usual returnd collected from individual farmers, it may be possible to aecertain very axv curately the quantity and position of the wheat produced, and with the information co obtained the position can be more accurately reported upon at a ' later time, "In order that the Government may ' be kept ia close touch with the prices at which wheat and flour are being marketed, the Government Statistician has I been directed to collect returns, twice a month, from all flour-millers and j from wholesale merchants, showing i prices at which wheat and flour have actually been sold by them, and regulations making the furnishing of* these returns compulsory have been issued under the Census and. Statistics Act, 1910."