WHEAT SURPLUS

Hokitika Guardian, 24 March 1931, Page 3

WHEAT SURPLUS

US.A. FARM BOARD

(United Press Association By Electric Telegraph.—Copyright.)

WASHINGTON, -March 22

The United States Farm Board has announced that it will not authorise the Grain Stabilisation Corporation to make any wheat stabilisation' purchases from the 1931 wheat crop, and will not attempt to maintain wheat prices at an artificial level beyond the month of May, Ibox. The Board lias offered a statement as follows:—“Stabilisation operations are emergency measures. They entail a heavy cost. The Stabilisation Corporation lias acquired and is acquiring a very large stock of wheat. It cannot indefinitely buy more than it sells, or indefinitely hold what it lias bought. It cannot follow a regular policy of buying at prices above the market, paying heavy storage charges, and selling below cost. The farmers know this. They would not ask that it be done. It is too early now to set forth w.hat the sales policy of the Stabilisation Corporation will be. in the new crop year, except to sav that the stabilisation of wheat supplies will be handled so as to impose the minimum burden upon domestic and world prices.

Emphasising the necessity for an acreage reduction and for an increase in competitive marketing, the Farm Board continues:—“ln spite of the foregoing facts, the growers must recognise the responsibility that is resting upon them.” The Board states that it recognises that the problem of marketing the present wheat holdings at some future time is a tremendous one. Tt lias explained that it has no intention of resorting to any dumping of what wheat it now controls or may buy of the remainder of the 1930 crop.

The announcement finds the Farm Board possessing approximately two hundred million bushels of wheat. Some quarters estimate that bv June, the Board will possess three hundred million bushels of wheat, and will con. tvol virtually the entire surplus wheat in the United States. RUSSIA’S INFLUENCE. LONDON. March 22. The “Morning Post’s” Rome correspondent ronorts that the agenda for the second Wheat Conference, opening at Rome on Thursday, lias been fixed so as to bar political considerations, but there will be present a strong Russian delegation, which gives a distinct political as well as an economic character to the conference. Fiftv-four countries will be represented. Tl is obvious tlu’t if the wheat growing countries should agree to curtail their wheat sowings, Russia would then have a free hand to dominate the whet world. America has foreseen tin’s dilemma. and has only sent observers. Thus America will not participate in any scheme which would entail the persuading of the American farmers to reduce them acreage in favour of Rus-