SPECULATORS IN OATS

Evening Star, Issue 17367, 1 June 1920, Page 9

SPECULATORS IN OATS

WANT THE EXPORT TO AUSTRALIA STOPPED. The trouble in the oats market caused last year by Auckland, speculators has now made a reappearance. A leading merchant, in Otago, when asked about this matter, said: The natural course- of business would he that merchants in the South (where the buik of the oats am grown) would be trying to find purchasers in the North and elsewhere. This procedure- was reversed. Practically before a sack of oats was harvested the Auckland speculators wore making strong endeavors to sell oats to us, and they succeeded in effecting sales amounting, to ..tens oi thousand* of sacks of oats that they did not possess. Knowing something of the exceptional conditions throughout the oat-growing centres, and being convinced that the future- prospects all indicated that high pi-ices would rale this season, quite a number of merchants throughout the- Dominion promutlv took Advantage oi the offers fiom iuckland to supply oats right on from March to f December, 1920, afc verv reasonableprices indeed—via., from 5s Id to 5s 4d, f.0.b., sacks in. Tho majority of the large operators in Otago and--Cantei-bury. however, would not touch the Auckland •'paper" oats at any price, recollection of the trouble and annovanco, there was jast year over the multiplicity of transfers in connection with tho paper contracts having caused them to re-solve that they would confine their operations to actual oats ; consequently most of tho •large shippers and millers have been buying all lines suitable for their requirements ever since the season onened, and have been paying the farmers anything from 5s to 5s 6d, bags- extra, an trveks at country stations, according to quality, or equal to 5s lOd to 6s 4d f.0.b., sacks in. Realising now that most of the oats have parsed from * the grower into tho hands, of the shippers and millers, the Auckland ■ forward sellers who took upon themselves to sell the farmers' oats without consulting Mm are now running to tho Government with a plea to have an embargo placed upon the export of oats to and the Auckland traders referred to have been flooding the South Island -merchants with sheaves of telegrams ever since the season opened, these telegrams containing quotations for oats considerably below the prices being paid to the growers, and circulated with but one object—namely, to bring about the entire demoralisation' of the "oat market. In deed, shippers and millers have been experiencing a most anxious and trying time for months past,, and it has been made more difficult for them to continue paying the. iiigh prices'that have been ruling, for the simpb reason that the Xorth Island, owing to favorable weather conditions, has up to the present been able to supplv her own requirements a-» regards oats, chafT, and «iher necessary produce. But Xorth Island merchants are now beginning to realise that it is necessary for them to begin importing oats and chaff from tho .South, while Australia is also coming into the market for the same purpose. Fearing thatttv 3' v 3 demand from Australian markets will cause considerably enhanced '•alues, the Auckland forward" sellers are now rushing xo the Government and seeking protection and relief. - It would be shabby treatment for tho millers, shippers, and farmers who still hojd oats if the Government at this stage stepped in and placed an embargo upon exports just to gave the Auckland gamblers from suffering a loss. But there are.other aspects of the business that have to be considered. We are to get wheat from Australia-, and we also require thousands of tons of (superphosphates of lime for our producers in this Dominion. "What is more reasonable than that wo supply Australia with oats in exchange for the wheat and superphosphates we so badly need. Another thing is,, we want the Commonwealth Government to withdraw the-, embargo that has been placed upon the importation of New Zealand potatoes into Australian ports; and if we practically say to the Australian authorities that we cannot give them any oats or chair because wo are afraid we will run short ourselves, they might reply to the effect that they will* be unable to spare v.s- any wheat or superphosphates for

the game reason. No doubt Mr Massey' and other responsible Government officials will give these aspects of the situation mature consideration, and not allow themselves to be influenced bv the Auckland speculators. It is recognised as a sound economic principle that a country should endeavor to make the- value of its exportsexceed that of its imports, and it would bo -unfair not only to farmers and shippers, but to the Dominion generally, if the Government showed special consideration for a few individuals who are worrying about a l<sss which they have brought about themselves. It simply means that if the Government interfered with the market for oats farmers will becqjne afraid to grow this cereal, as was the ca.se when the price of wheat was interfered with. The Government have had quite sufficient experience already to convince tlum that if the- area sown hi crop in this Dominion is to be materially increased, there must bo an open market left to the growers. It may be mentioned that at the present prico of oats the millers have convinced the Excess Profits Board that there is not more than 5s lOd per ton profit left if ihey have to covrtinue- Belling oatmeal at the present price, so that it must be evident to everyoie that the fault does not lie at the miller's door, and that it would be unfair for the Government to interfere in such a way aa to cau.su the stocks of the millers' raw material to depreciate in value.