TRADE ITEMS

Evening Star, Issue 17921, 17 March 1922, Page 8

TRADE ITEMS

CONTROL IN DIFFICULTIES.

TEE .WHEAT PROBLEM,

Accounts anything but reassuring are coming to hand about the now seasons wheat. The weather for harvesting has ■been exasperating to farmers. It was facetiously stated this week in regard to wheat on the Taien Plain that with a few days more oi such humid weather as had been experienced last week the wheat would be sprouting m stock, But for broken weather practically all ol 10 would by now have been in stack. JJm, the bulk oi our whoat comes from lurtncr north, and reports from there are not encouraging. ■ Samples of gram so tar to hand from the Oamaru district are mostly very duty, and by no means up to the mark. Furthermore, it is rumored that the Canterbury yield is not turning out to be ref the quality hoped for. lo such an extent is this the case that the Govomment is having extreme diihculty in fulfilling shipping orders for the bast, it has had to reject quantities ot grain because the quality is not that which it contracted to supply for shipment. The position is peculiar. The Government may control the buying and retting of wheat,, but it cannot control the weather. It can make estimates of the harvest, but -Nature ordains the yield. Forgetful of this, tho Wheat Centre, Hoard began to dispose of tno presumed surplus in advance. Now there is a possibility that there will not bo sufficient milling wheat for local rctiiurements. Then there will have to bo yet another change of policy on the part of the Government. Some montiis ago minimum, prices wore fixed, these being on a lower scale tliufl those for the previous harvest, Towards 'the end of last month these were suddenly revised in an upward direction, tho upshot being that millers now have to pay ?id per bushel higher than tho previously announced rates, the prices (including brokerage) now being 6s od for Tuscan, 5s 6d lor Hunters, and 6s 9d for Velvet. But neither millers nor shippers will pay these prices lor damaged stuff, and should much of the harvest prove of this description, farmers will be left with a lot of their crop on their hands. In that case there may presently be a lot of fowl wheat on the market. To-day fowl wheat is worth 4s 3d to 4s 6d per bushel on trucks; but those in the grain trade expect that before very long over-supplies will bring down values with a run. (It may bo mentioned that millers are virtually prohibited from gristing fowl wheat, a penalty of 3s per bushel attaching to its use.) It is also considered likely that bran and pollard will fall in price within three months, particularly bran, for which demand is slack, one reason being that in the North Island tho grass has provided stock with good feed for an exceptionally long period of the season. There is good demand for pollard.

An actuarial calculation would be necessary to ascertain whether on the last revised prices for wheat and flour the loaf remains State-subsidised. The position appears to be that the Government is growing tired of subsidising an already very expensive loaf (at the people’s expense), and is putting some of the burden on the flour-miller. How long the present position will last is quite uncertain. It may be that tho wheat grower will call upon tho Government for a further extension of paternal interest. The appetite grows by what it feeds on. It might sound far-fetched for tho farmers to demand compensation from the Government because their returns are below expectations ; but all things are possible in a farmers’ democracy with a Farmers’ Government guiding its destinies, especially in an election year. Tho farmers have been steadily educated up to tho pitch of asking anything from the Government. The result seems to be a mixture of artificiality and autocracy which, may land the country and its finances anywhere. It is worth while harking back to the genesis of tho Wheat Control Board. Tho argument for Now Zealand being selfsupporting in the matter of cereal foodstuffs began long ago. The position was first met by the imposition of Customs duties. Thou came the embargo on importation. Now w© have control. A pamphlet was published in Oamaru on ‘ The Need for State Protection and Its Justification,’ and this may he considered as the passport of the Board of Control. It contains ever so much sound reasoning. The unfortunate part of tho business is that all this reasoning is based on the assumption that New Zealand can never experience anything but an excellent wheat harvest, To quote from this pamphlet:

We are fortified by three fundamental propositions that must receive universal endorsement, , . . To secure the maximum of production tho Dominion’s primary industries should bo widely diversified, bo that the fullest advantage may bo taken of adaptability of soil

and situation, and of climatic condi

tions. The other two fundamentals arc as grandiloquent and empty as tho peroration of a political speech, and their references to “permanent prosperity” are inopportune. But our “adaptability of climatic conditions ” is hard to swallow. The rain came at the wrong time—the climate was too “adaptable” this season.

Later on the pamphlet says: “Upon the State grain-growing confers a great benefit.” It appears as if tho State confers on the grain-grower enormous bcneshort only at the regulation of the weather. Again: It is an improvident proceeding to expose the people to tho necessity of seeking elsewhere their daily bread. Such a course entails all the risks of bad seasons in lands where supplies may be sought, a world shortage, and consequent high prices for wheat and flour, and dear bread for the people. To avoid such consequences it is imperative that wheatgrowing should be afforded an assurance of a ready market at prices remunerative to tho grower.

Circumstances alter cases, So far as can be ascertained, there is anything but a world shortage, especially if India’s disturbed state will permit of her anticipated surplus being available for export. And it would bo the reverse of “an improvident proceeding to expose the people to the necessity of seeking elsewhere their daily bread,” If they were allowed by the Government to do so, they would get it cheaper than they do now. Unemployment is quietly but steadily growing, and a cheap loaf would bo a much more real relief than tho languishing efforts now being made in other directions. It would win more votes than many perorations. But tho Government clings to control. And at would like it to bo absolute control. This was made perfectly plain in tho case of the meat pool. Mr Hunt, of Wright, Stephenson, and Co., was elected as tho slock and station agents’ representative. Tile Government, who specially provided for such representation, vetoed this choice. Tho Government made no move in this matter until yesterday. Mr Massey then stated: “ lie (Mr Hunt) is a very good man, but lie has been opposed to the scheme. How could he be appointed in these circumstances?” Right on the heels of this declaration comes the announcement to-day that Mr Hunt is to join the board. The Government evidently thought bettor of quarrelling with the stock and station agents, who stood very firm in the matter. OTHER MARKETS.

There is not ranch business doing in oats locally. Merchants are waiting for the new crop. Though a smaller acreage is believed to bo under this crop than was the case last season, a hotter yield is looked/for, as the harvest is threshing out pretty well. The changeable weather has retarded harvesting in the south; otherwise more oats would- have been in the market by this time. However, the North Island is not a keen buyer at present, its own comparatively limited supplies being available earlier than the South Island crop. At present coastal shipping services are quite adequate to cope with present movements north, but the usual rush in iiirfi, June may ;uako space

*more difficult to obtain. It may be mentioned that for the movement of ;n : s harvest by rail the freight on oats is 40 per cent, higher than of old. r Tio same increase applies to oatmeal and several other foodstuffs. Tho railway charges on wheat are 20 per cent, higher, and on ilrrux 10 per cent. In the Gore and Lovells Plat district good crops of oats are reported, but Tapanui samples are discolored, “Prompt” oats are being offered from tho south for shipment North. There is very little prospect of overseas business in oats.

There is a rather better remand for grass seeds than had been exposed, but there have been indications of m attempt to introduce in tho seed m.vjfet the same speculative methods which tbd such harm to tho legitimate trade in the oats market. Gambling in futures is likely to prove a much more risky affair :n grass seed than in a standard line lure graded oats.

In hardware business is .-till dull. In a few heavy lines English markets are maxing upwards. In sundries prices are go’ng down very slowly, and that tenden, y unlikely to quicken until i lio wages question is settled in the Homo producing in dusky. No shortages a;c i'-. non ted, amerchants have been ordering regularly u small lines, and thr|e is no delay in execution of orders, shipments now coming to hand quickly. Regarding lines required m the building trade, some of these are now flown 50 per cent, as compared with former rates. No further fall is expected, as overstocking is a thing of the past, and no continuance of quitting at a sacrifice, as was the case during 1921, is likely.

The next, and final, wool sale of tho Dunedin series is set- down for March 31. It is probable that 12.0C0 to 15.000 bales will be catalogued, and that prices will he about on a par with those realised at the last Dunedin sale.