WHEAT PURCHASE

Evening Post, Volume XCV, Issue 23, 26 January 1918, Page 6

WHEAT PURCHASE

THIS SEASON'S CROP

STATEMENT BY MINISTER OF

AGRICULTURE

The Hon. W. D. S. MaeDonald, Minister of Agriculture, in Christchurch yosterday explained the present position as. to the purchase of this season's ;wheat crop. • He' said that the total area under terop, as ascertained by the officers of the Agricultural Department, was 263,571 acres in the South Island and 8178 acres in the North Island. The total was 271,749 acres, made up as follows :— Variety. Acres. Tuscan, and Longberry 180,988 Huntec varieties 44,765 [Pearl and Velvet 45,996 The weather conditions during the past two months, particularly during the ■last month, had militated somewhat Sigainst the yield anticipated earlier in the! season, but if the.yield came up to the- average of the past ten years,.there jwould probably be sufficient wheat for (local requirements, and it was hoped that there would be no necessity this season to import from Australia, except, perhaps, a small quantity for mixing purposes. In view of the increasing shipping difficulties, it was to be hoped that such a result would be achieved, as last year the strain on intercolonial shipping resources to bring from Australia approximately one and a quarter mil- . ilion bushels was severe, and New Zealand, which was eminently fitted to grow sufficient wheat to satisfy its own requirements, should not be faced with the spectre of a wheat famine. The farming community of New Zealand was to be , commended for its splendid response- to his appeal early last year to 'grow wheat, when other forms of pastoral activity were much more attracTHB NEW SCHEME. The scheme for handling the crop was the outcome of various conferences held ibetween the interests concerned and the 'Board of Trade. It was finally adopted at a.'conference presided over by him early, in November of last year. At that Conference a Committee of Advice was appointed to assist the Board of Trade and the Wheat Controller in carrying out the scheme, and in'the wheat trade regulations, gazetted on 22nd December last, giving legal sanction to the scheme, that committee was given legal status. Naturally, under a scheme of that kind, •which wa-s an entirely new departure, there had to be a good deal of give and take, and no ■ particular interest had had special consideration. Of course, some businesses had to be interfered with to some slight extent, but such interference .■was quite inevitable.in time of war. ■'■ The scheme had to ensure that the Jarmer received the price guaranteed to him by the Government, and that the millers were given an equitabls distribution.- To handle the scheme the Government .was utilising at far as possible the insual business channels. Recognising th© advisability of having the assistance of expert advice when needed, the National Mortgage Company was approached to secure the services of Mr. W. ti. Pratt, who had had a long and varied experience in the wheat trade, and from ieommunications the Minister had received he was confident that the appointment had snet with general approbation. POSITION OF BROKERS AND I' MILLERS. The Board of Trade was now issuing licenses to recognised grain brokers, who ,ivere required, as evidence of good faith, to deposit with the Government the sum of £500 and to provide suitable sureties lor a further sum of £1000. Something of that nature was necessary, as large sums of ■ public money were involved, and in view of the fact that the brokers had undertaken to practically guarantee the Government against loss. The ■bjoker, except'in special circumstances, "was precluded from purchasing milling iwheat on his own account. Early in February next, when the Wheat Controller would be in possession of the necessary statistical data to be furnished by the millers, showing their output, the capacity of mills and probable requirements, an allocation of the crop Would be made accordingly to each miller, the various varieties being .properly proportioned. Warrants to purchase the amount so allocated would then be issued to the millers, and they would be expected to take delivery of as much of their allocation as they could accommodate in their own mills or find suitable storage for. Brokers had been instructed to arrange, as far as possible, that all deliveries would be made direct to the mills or to the millers' stores. If the farmer could not make an immediate sale and was compelled by forco of circumstances to hold' his wheat, ho would be given an extra jd per month from April to September for so doing. That rate would probably be sufficient io recompense the grower if ho was compelled to put his wheat through store. 'If there was any surplus of this seaSon's crop after local requirements had .'been satisfied, the Government would, iof course, purchase it right out and •carry it over to next season, and it would, he might say, relieve his ar.xie:ties very greatly if the surplus was a substantial one. i ■ THE FUTURE. • • No one, of course", could foretell what faould happen in the future, but it was apparent that the authorities in Great Britain, Canada and the United Sts-tes ! anticipated a wheat shortage r.exi year, and, in consequence, tho Governments of those countries had offered the farmers substantial inducements to continue growing this cereal. He noticed by that morning's r.ewspapers that Professor H. Maxwell Leiroy, who had been sent out to Australia by the Wheat Commission vhich sat in London, to apply a remedy he had discovered for tho treatment of weevily wheat, strongly recommended the Australian farmers to grow as much wheat ■as possible, even though Australia at present had millions of Kushels, which, on account of shipping scarcity, could iiofc for tho time being bo transported to, Europe. Continuing, Mr. Mac Donald said that as far as possible brokers would make prompt settlements with farmers, and, in terms of the contracts made, would pay for all wheat delivered, on the first and fourteenth day of _ each month. INCREASED FREIGHT. i One fact brought under his notice' was that the Railway Department, in adjustirtg its freight schedule charges, while nominally making no increase in the rate for the carriage of wheat, had in reality increased the freight by approximately 10 per cent., because it now regarded a ton of wheat as 22401b, whereas in the past it had always carried 24001b of wheat to the ton. As such an increase ■was not anticipated when lie announced the price for this season's crop, he would, on his return to Wellington, consult the Hon. W H. Berries, Minister of Railiways, regarding that matter. ■HEADQUARTERS OF SCHEME IN CHRISTCHURCH. The Canterbury district this year was producing 82 per' cent, of the wheat grown in New Zealand, and he therefore deemed it advisable that the *cad office «•* f-he scheme should be. situated in

Christchurch, so that the Wheat Controller might be in a position to deal promptly on the spot with all matters affecting tho purchase, and adjust any unforeseen difficulties that might arise from time to time. He felt that this arrangement would be conducive to the smooth running of the scheme.