The Gisborne Times PUBLISHED DAILY. FEBRUARY 26, 1931. AN AWKWARD BUT NOT INSURMOUNTABLE PROBLEM.

Gisborne Times, Volume LXXII, Issue 11450, 26 February 1931, Page 4

The Gisborne Times PUBLISHED DAILY. FEBRUARY 26, 1931. AN AWKWARD BUT NOT INSURMOUNTABLE PROBLEM.

'Hie Government, it will Lure? been netod. Las promised to do everything in wti powcv to bring about a further ryuction in the cost of living as an •ofi’sct to the proposed lowering of *vages. What methods it believes 'might be successfully adopted to that important end, if has not. however, so far outlined. It is, assuredly, confronted with a very awkward problem in the case of Hour and wheat prices. The price which has beqn guaranteed wheat-growers in this Dominion covers the present season’s crop and the contract must stand. That protection, to the extent at present given will not he continued after the present season may, however, bo taken for granted Unquestionably, the position occupied by the? wheat-growers of this Dominion is anomalous; they form the only section of producers who, at present, do not need to worry at all ovqr tlio value on the world’s markets of tho commodity which they produce. What a happy hand the meat-growers or the wool-growers or the producers of dairy products would be if they, too, had a States guarantee of a prico 200 per cent, above world’s parity! Tho position is, of course, economically absurd. Meantime, the poor liousewifo in this Dominion is called upon to pay a most unjust price both for Hour aiid for brdad. It is jiossible that tho 'Government may, however, attempt to case the burden somewhat, ,biut ; apart from tlio grant of a straight-out'subsidy per bushel to the growers, tliQ. only other method of doing so would bo circuitous. Recently, there', has been some talk that there? is likely to be a substantial shortage in connection with, this season’s production of wheat. If that should bo' the case tEo Government may-decide to purchase immodiateiy 1 from Australia a serio.s of large con-, signmehts of- wheat, even more than is absolutely' necessary. In tliqt event it might insist that millers use a proportion of tho imported wheat, thus ensuring .that tho average price of Hour shall-.fall much below* what would bo tliq Case if only DoiuUiibnwheat were milled. Even to-day some' millers profess to secure better results hy ; the ihter-mixtur.e of certain classes of imported wheat, which cost as ■■ much as tho homegrown. If nlorp wheat should be? imported - than is ' ’ absolutely v necessary, it would, of course, nicaii tlia t tlio carry-over .would • be appreciable. Tho burden could,. lfowovQrj bo lightened .if tho price for next' season’s' wheat wero made considerably lower. But, as wo havo pointed out, that would he tho only way of reducing tho eost of flour in this Dominion i apart from Cthe adoption of a straight-out bonus payment per bushel to' tlio. grower instead of insisting that the miller shall pay the present ’ exorbi taut • State giwranteod price. In'tlio past, the plea has been raisqd that, • if 'the whoat-growers did pot get . a high price for their product,'■ they, would' turn' to. some other, lino of production. As it; so happens, however, tliby would bb up.bettor olf if thqy wqnt-'iu for, say, meat and wool ’ ., liidqedi / it .. .S2«ild

pay thorn bettor to continue growing wheat at a much. lower 'price than to change to any other pursuit. The;.' present position of things must he altered if all all possible and relief tq house-wives could ho given, as wo havo shown, witiiout breaking this season’s contract with, the whqatrgrotyers.