PRICE OF WHEAT.

Manawatu Standard, Volume XLIV, Issue 969, 19 March 1924, Page 9

PRICE OF WHEAT.

GROWERS AND MINISTER. AN ALLEGATION REFUTED. An allegation by the chairman of the Wheat-growers’ Conference that the Government does not want farmers to grow wheat is refused by the MinisAgriculture, who has handed the correspondence on ,the subject to the Press.

The chairman of the Wheat-growers’ Conference wrote to the Minister on February 10: “I have to-day received your Fitter of the 7t-i hnatns etao your letter of the 7th instant, and am passing on its contents to the southern wheat-growers as you request. As I understand the position, the result of Cabinet’s decision will be that 1.-,

wheat will be worth 4s 73d per bushel, as against 5s 3d to-day. The inference is that Cabinet does n< t want New Zealand farmers to grow wheat. Is that correct?—(Sgd.) J. D. Hall.” The Minister replied as follows on March 14:—

“Your letter of the 10th instant to hand, acknowledging r-iceipt of mine of the 7th idem, in which was conveyed the Government’s decision in regard to the wheat crop for the 1924-25 and subsequent seasons. I note that you are passing this on to the southern wheatgrowers, for which accept my thanks. “I also note that according to your understanding of the position, the result of Cabinet’s decision will be that the 1925 wheat will be worth 4s 73d per bushel as against 5s 3d to-day. I must confess,ho wever, that lam unable to see how it is possible to foretell with any exactitucb a year in advance what the price < f a commodity will be when this is governed by supply and demand throughout the world. “As regards your statement that ‘the inference is that Cabinet does not want New Zealand farmers t) grow wheat’: I am very surprised inde ed that anyone conversant with the facts should write in this way. Cabinet lias given, and will continue to give, wheat-growing every possible encouragement; in proof of which I have only tr point to the increased duties imposed in 1921 and the promise now made that existing duties on wheat and flour will be maintained, and Parliamew; asked to increase the latter. The fixing of prices was, as you know, adopted only as a temporary expedient during the war period, and it is thought that the time has now arrived for the wheat-growers, like other primary producers, to accept the prices ruling on the markets of the world. The fact should not be lost sight of, hewoer,v ebaoicmfwypepjey sight of, however, that they will have the very considerable assistance of a tariff of Is 3d per bushel, plus the natural advantages of local wheat over imported in the way of freight, handling charges, etc. “I would again like to stress the fact that . with the removal of the fixed prices, but with the maintenance of the duty at the figure to which it was increased in 1921, wheat-growers in New Zealand will still be in a far more advantageous position than that enjoyed by them under any previous administration.”