SUPPLIES OF WHEAT.

New Zealand Herald, Volume LII, Issue 15884, 3 April 1915, Page 9

SUPPLIES OF WHEAT.

THE AUSTRALIAN SHIPMENT.

LOAN MAY BE REPAID.

THE CANADIAN "OPTIONS."

[BT TELEGRAPH. OWN CORRESPONDENT.]

Wellington', Friday. Wires' the Dominion Government, early in the war, purchased 100.000 bushels of wheat from the New South Wales Government an undertaking was given that if tho wheat should later be required in New South Wales, a similar quantity would bo returned to the New South Wales Government at the original purchase price.

The Prime Minister has now received advice from tho New South Wales Government that the wheat may be required in that State, and that he may, therefore, have to return it. Mr. Massey states that ho hopes to be able to repay this loan out of tho wheat over which he has secured an option in Canada, as, presumably, there would bo no shortage of wheat in Australia until the time of next harvest was approaching. "We shall probably make a loss on the transaction," he added, "but at the time we arranged to get that wheat from Australia wo were in an exceedingly awkward position here. More than half of our mills had closed down, and supplies of wheat were just about exhausted. The New South Wales wheat arrived just in the nick of time to save us from a flour famine."

" The cause of the high price of Canadian wheat to New Zealand,'' s ays Mr. Massey, "is the enormously high" cost of ocean freight. The best offer we have for the carriage of any future supplies of wheat from Canada is £4 4s per ton, and as a ton contains 37 bushels, this works out at 2s 4d per bushel. Do not suppose that we are agreeing to pay these rates. I am endeavouring to make better arrangements."

The Prime Minister added that the Registrar-General had prepared a rdtum showing tho prices of wheat and flour in New Zealand and in the Australian States. In Christchurch wheat is quoted at 6s 9d per bushel and Hour at £16 10s py ton. In Melbourne the price of wheat is 8s 6d and of Hour £18 ss, and in Hobart wheat is 8s and flour £17.