WORLD'S PARITY

Evening Post, Volume 65, Issue 65, 17 March 1924, Page 5

WORLD'S PARITY

SHOULD BE "ACCEPTED BY WHEAT-GROWERS.

The correspondence between the wheat-growers and the Minister of Agriculture in reference to the price for next season's wheat has been handed to the Press to show that an allegation by the chairman of the Wheat-growers'- Conference that the Government does not want farmers to grow wheat is unfounded. The chairman of the Wheat-growers' Conference wrote to the Minister on 10th February.: "I have to-day received your letter of the 7th instant, and am passing on its contents to the 'southern wheatgrowers as you request. As I understand the position, the result of Cabinet's decision will be that 1925 wheat will be worth 4s 73d per bushel, as against 5s 3d to-day. The inference is that Cabinet does not want New Zealand farmers to grow wheat. Is that correct?—(Sgd.) J. D. Hall." The Minister replied as follows on 14th March:— "Your letter of the 10th instant to hand, acknowledging receipt of mine of the 7th idem, in which Was conveyed .the Government's decision in regard to the wheat crop for the 1924-25 and subsequent seasons. I note that you are passing this on to the southern wheat-growers, for which accept my thanks. I also note that according to your understanding of the position, the result of Cabinet's decision will be that the 1925 wheat will be worth.4s 7|d.per bushel as against 5s 3d to-day. I must confess, however, that I am unable to see how it is possible to .foretell.with any exactitude a year in advance what the price of a commodity will be when this is governed by supply and demand throughout the world. As regards your statement that the inference is that Cabinet does not want New Zealand farmers to grow wheat, I am very surprised indeed that anyone conversant with the facts should write in this way. Cabinet has given, and will continue to give, wheat-growing every possible encouragement; in proof of which I have only to point to the increased duties imposed in 1921, and the promise now made that, existing duties on wheat and flour will,be,maintained, and Parliament asked to increase the latter. The fixing of prices was, as you know, adopted only a3 a temporary expedient during the war period, and it is thought that the time has now arrived for the wheatgrowers, like other primary producers, to accopt the prices ruling on the markets of the world! The. fact should not be lost sight of, however, that they will have the very considerable assistance of a tariff of Is 3d per bushel, plus the natural advantages of local wheat over imported in the way of freight, handling charges,- etc. I would again like to stress the fact that with the removal of the fixed prices, but with the mainten, ance of the duty at the figure to which it was increased in 1921, wheat-growers in New Zealand will still be in a far more advantageous position than that enjoyed by them under any previous Administration.., \ ■