THE WHEAT SUPPLY.

Lyttelton Times, Volume CXVI, Issue 16992, 20 October 1915, Page 9

THE WHEAT SUPPLY.

CA.NTER.BUEY MERCHANTS AND MILLERS IN TROUBLE.

SEEK RELIEF FROM GOVERN-

Tho position of the fanner, the miller, and • the merchant in relation to the growing and marketing of wheat was discussed with the Hon G. A\. Russell yesterday by a deputation that represented all thieo interests. Tlio deputation consisted of Messrs H. S. Bourn, president of the Canterbury Chamber of Commerce, E. W.. Relph, T. F. Gibson, A. Kayo, 11. Allen and D. Jones.

Mr Bourn, speaking for the mercantile interests, said that wheat was one of the essential products from which Canterbury obtained its revenue, and anything detrimental to tho growing of wheat would bo a calamity not only to the province, hnt also to the whole Dominion. Some -time ago the Government placed a limit on the price, which was much below tho ruling prices in all other countries. Following on that, farmers in Canterbury were askrcl by tho Government to grow wheat. They were told that wheat would bo needed, that the markets of the world wonld be open, and that good prices naturally would remit. Later still, exportation was prohibited, and importation was allowed duty free. In the system of dealing with wheat in New Zealand, farmers gathered tho harvest in January, February, or March, according to the season. Tho whole of the grain was marketed. The farmer sold 60 per cent, or even 70 per cent, to those who were engaged in the industry. It was thought at tho time that there was not sufficient wheat to meet the country's requirements. Then a census was taken and it was found that there was a surplus. The merchants, who bad. bought from the farmers, found that the prieo wad slipping away from them. In other words, the class that was trying to carry tho load was face to face with a heavy loss. , The Prime Minister had promised to oonsider the question of relief after 1 I the session of Parliament, continued Mr Bourn. The deputation felt that beforo Cabinet did. 1 anything it would like to plnce tho position before Mr Russell, because tho Government was composed mostly of members from the North Island, who wore not conversant with the conditions in Canterbury, which was the wheat-growing centre of tho Dominion. Thoso who had suffered a- heavy loss should -be relieved. Further, consideration should be given to safeguarding and protecting the wheat-growing country. Canterbury depended on wheat for its revenue. I* wheat-growing was not carried on Canterbury eventually would be the poorest province in the Dominion. On account; of climatio conditions—rainfall, and. so on __it could not compete with the North Island in raising either wool or meat. In the North Island food for stock grew naturally, while Canterbury had to grow it by artificial means. In) the circumstances, and in the interests of Canterbury generally, he asked that the Government should consider the question' of relief. Mr Relph said that much revenue was supplied by the wheat harvest. Thoso interested in the industry were guided in making their calculations by the assumed crop. The Government went to much trouble to obtain the statistics, and merchants and others were informed that there would be a. serious shortage. On that understanding merchants and millers operated. Then further statistics were published, and it was discovered that instead of a shortage there was a surplus. Merchants who had bought large stocks felt the effect immediately. They could not get the stocks away, because there was an embargo, while flour was coming in free of duty. Millers decided to feed themselves from hand to mouth. They had continued to do so, and merchants and, farmers, who could not market their wheat, were called upon to face considerable loss, brought about by circumstances over which they had no control whatever. If the request they made to the Government had been granted, they could have unloaded to Australia, whence they received offers, a part of what they believed was a surplus. They even undertook to bring in wheat equivalent in quantity to that which they sold, by Decern- . ber, in order that tho public should not be exploited. All they asked was that, machinery should be put into mbtion in order that they should have relief. Mr Bourn said that the merchants could have exported wheat in September at 6s lOd'f.o.b. and imported in December at 4s 4d, and they could have submitted attachments, purchase notes and other documents for inspection by the Government. Air Relph said that the conditions of disposing of the wheat harvest were different now from what they were some years ago. Previously they sold on commission. Now merchants purchased the wheat at the market prices. Millers had become accustomed to,rely on merchants for their supplies. Consequently, the merchants sometimes held large stocks, as in the present case. The position was a very serious one. It was decidedly hard and quite unfair that a small section of the community should have to bear such a heavy loss. Mr Jones said that the question, perhaps, did not interest the farmers as much' as it interested the merchants, but tho former were having their wheat held up after they had been asked to grow it specially. New Zealand now should be free of all kinds of produce that could be got out of it, as there would be large quantities of wheat waiting for transport later on. It was probable that more flour would be carried over to next year than had been

carried over to any previous occasion. The merchant and the miller had carried the fanners' burden in the past, and now some of them, were being ruined owing to the confidence they placed in the Government statistics. He added that ho did not think the collecting of tho statistics could have been done better in the circumstances.

Mr Allen suDported the other speakers. Many householders, he said, had obtained large quantities of flour, and still held the stoclcs. If care was not taken tho price of the loaf would be increasedl to Is.

Mr Kaye said that the Prime Minister had urged farmers last year to grow wheat, saying that there would bo the markets of the world to operate on. As a matter of fact, the markets of the world were not available. There was n slight- chanco of disposing of the surplus in Australia, but the chance cculd bo taker advantage of only if the wheat was exported at once. Mr Gibson said that the statistics oei'tainly were incorrect, in some particulars, notably in stating the area of wheat under cultivation. Mr Bourn said that there should bo an opportunity to those interested to export uot only to Australia but also, to any other market in the world that might be open. Mr Pnsscll said that nobody would expect him. as a .new Minister, to criticise the action of the Prime Minister, action taken in the past. He would not utter a word of. criticism in regard to the actions of a previous Government. But he had the Prime Minister's assurance that there would be no shortage of tonnage for exports This year. The latest news received m that respect was of a most satisfactory character and removed all possibility of a shortage. He was speaking or meat, but what applied to meat apn.ied to grain. The Canterbury wheat growers should send a /deputation, to interview the Prime Minister, who was an absolutely fair-minded man. Canterbury was the wheat-growing pro* vt ice of New Zealand. TO the exception of a portion of. Otago and of Rjngitdkei, and the district* around AVanganui, it was the only part of New Zealand where wdieat was grown. It was a national question. The yield of wheat, he understood, was larger than expected, and the Government urged faVmera to put as much land m wheat as possible. As the result o those two .circumstances there was, - surams: It did not matter whether the surplus was held by merchants or m stotes the Government, was bound, to Sw air consideration to the request tor renef. He was confident .that he Smn Minister wonld treat justly Members of the deputation thawed Mr Russell for his suggestion, and. e Promised in addition, to submit to tlie any written statement JfThe ca.se they could send to nnn.