World’s Wheat Problem

Manawatu Times, Volume LIV, Issue 7246, 28 August 1933, Page 7

World’s Wheat Problem

Agreement Reached At London Conference EXPORT LIMITATION AND PRICE SETTLED British. Official Wireless. RUGBY, Aug. 25. An agreement on the world price oi wheat and on the limitation Oi. supplies wa3 reached to-day by the Wheat Conference in London, at which 29 countries aro represented. Tho Canadian Premier (Mr R. B. Bennett), who is chairman of the Conference, announced that tho exporting countries had accepted 32 gold francs per quintal (63.08 gold cents per bushel) as tho price love 1 at which importing nations may bo asked to readjust tho tariffs of wheat. / . The exporting countries had, ho explained, desired a higher price, but in view of representations made by other delegates, they were prepared to agree . to this price. ' . Tho Confercnco started on Monday, and is therefore one of tho shortest international conferences on record. Preparatory talks wero conducted . m recent months at Geneva and during the World Economic Conference in London. The Preach delegate informed the Conference that his Government was prepared to give proof of their desire for agreement by accepting this price. The dolegato from Germany spoke in similar terms. _ , On behalf of Russia it was stated that the Soviet would sign, but witli a reservation as to tho limitation o exported wheat. The Danubian States intimated that they were in the same position as Kussia. The exporting countries havo agre 'to limit their export of wheat during 1934 to 560,000,000 bushels, with tho exception of Kussia and theDamibian States, will reduce their production by 15 per cent. Tho agreement is bo in force for two years. There was a proposal from America that the price level question should be left over to bo determined by the Wheat Advisory Committee, which is being set up in London, and the Italian representatives also urged that the matter should bo dclt with later, but their proposals were defeated. Britain and other producing countries who do not export will sign Lie agreement. . The importing countries, in a par - graph to be added to tho agreement, declare “that the measures affectm* area of wheat grown and tho .degree of production adopted, are primarily dependent upon tho domestic condition within each country, and that any change in those measures must obtain the sanction of the legislature, intention of this agreement is nevertheless that tho importing countrl " s will not take advantage of the reduc tion of oxports on tho part of expor - ing countries by developing their domestic policies in such a way as to prejudice tho efforts which the export ing countries arc making in the common interest to restore tho price of wheat to remunerative level.” In regard to. the figure of 63ffiSgold cents per bushel, inserted in t e uia agreement, the index figuro for - week ending August 5 was on this calculation 55 gold cents, and it is now between 53 and 54. It will bo seen, therefore, that the price is a rise o 10 "old cents approximately per bushel, and will be maintained at that figure for a period of four months before it will be necessary for tho J m P°^ in ® countries to adjust their tariffs. Wheat prices advanced on Liverpool futures market when the nows of tho . agreement became known. Tho price was -3d to 7-Sd down at the opening, but toso to 3d to 3d higher than yesterclose.

U.S.A. Acreage Plan announcement held up United Prcs3 Association.-rßy Electric Telegraph—Copyright. Ecceived Sunday, 7 p.m. WASHINGTON, Aug. 26. The Agricultural Department on Saturday night said that details in connection "with the London wheat agreement wcro not completed, delaying the announcement of the 1031 acreage reduction plan. Quickening the Wheels of Trade agreement a great CONSTRUCTIVE EFFORT Received Sunday, 7 p.m. LONDON, Aug. 26. The Financial Times says that, whatever its imperfections, the wheat agreement represents the greatest constructive effort yet mado to assist in quickening the wheels of trade. Standard of Living BEARING ON WHEAT QUESTION SASKATOON, Aug. 25. Mr. Frank Eliason, secretary of the United Farmers of Canada and the United States, regarding tho wheat quota, says that any attempt to reduce production to tho world's present low-living standard would he fundamentally and morally unsound. “If those attending world conferences would confine thcmsolves to setting up a planned economy and arranging for distribution so as to place sufficient purchasing power in the hands of the people, thus making for a decent standard of living, there would be no need of a quota."

mean enhanced prices tor growers. Production this season will probably be down 30 per cent., and the reduction basod on tho average of the period under tho agreement, is likely to be more than 15 per cent. Importers and Exporters LONDON, Aug. 25. Tho wheat agreement was signed at 10.30 p.m. after a delay due to complications. The drafting delegates concluded their session after a midnight agreement. The signatories are tho importers of Germany, Austria, Belgium, Bulgaria, France, Britain, Greece, Hungary, Ireland, Italy, Poland, Rumania, Spain, Sweden, Czechoslovakia, Switzerland, and Yugoslavia, and exporters of Australia, America, Canada and Argentina, while Latvia, Turkey, Norway, Denmark, and Estonia are probably signing later. Tho “Big Four’s" restrictions are based on the average sowings of 193233, after deducting normal domestic requirements. I