BOOM IN FLOUR.

Manawatu Standard, Volume LVII, Issue 100, 30 March 1937, Page 7

BOOM IN FLOUR.

GERAIANY AND ITALY BUYING. RAPID PRICE INCREASES. Another rise in the price of flour in Britain is expected this week, says a message dated March 18. It ro6e Is a sack three times last week and is now 425, or 50 per cent, more than a year ago. A rise of Is is expected to mean an extra halfpenny on the 41b loaf, making the price 9id. The Sunday Graphic asserts that the British Government, fearing the effect on the cost of living, may summon an international wheat conference, and propose a general increase in the wheat acreage. It states that Germany and Italy bought 100,000 tons of wheat oil one day last week, and the next day 120,000 tons. Germany has bought 1,000,000 tons in two months, and Italy 1,500,000 tons, involving for the two countries an expenditure of £20,000,000. The newspaper alleges that Germany and Italy are determined to secure at all costs 10 cargoes coming from Australia and the Argentine. From the Empire viewpoint, the competition for wheat is greatly helping Canada, at present the world’s chief exporter, and also Australia. . . The prosperity of those Dominions improves the prospects of British export trade if rearmament and the dilficillties with regard to raw materials, especially iron, allow British industries to take advantage of the condition. Britain faces the problem ot providing surplus stocks for a war reserve. It°is not only a matter of pn ce - lix " periments have shown that wheat cannot he stored indefinitely in the British climate, and the proposal to build granaries has been abandoned, or at'’least postponed for further inquiries. It has been suggested that Sour, partly toasted, can be stored. It is probable that the British Government will communicate with the Dominions about the wheat position, and the outlook in the event ot war. which nobody wants, and most people seem to anticipate, or, at least prepare against. As with metals. Britain regards with a certain equanimity the forcing up of the price. P rom the Empire viewpoint, it is broader than it is long.