LOW WHEAT PRICES.

New Zealand Herald, Volume LXVII, Issue 20599, 25 June 1930, Page 9

LOW WHEAT PRICES.

RATES IN WORLD MARKETS.

NO BENEFIT TO DOMINION.

EFFECT OF VARIABLE DUTY.

The nexrs contained in the cablegrams tliat tie price of wheat ca the Chicago market, SSj cents, is at the lowest level

since the beginning of the century, will reawaken interest in the position caased by the New Zealand sliding scale duty on impsrtaiisns of wheat and Sour. Iraposed fcr the purpose ox encouraging South Island farmers to sow their land in wheat*, this dnty has the effect of keeping wheat and flour prices in New Zealand from failing below a certain leveL

Cheapness of wheat in the world markets cannot benefit consumers cf bread in this Dominion, because the duty operates to prevent wheat or Sour being imported at a low price which would enable the leaf to be sold cheaper. Australia, by reason of its proximity, is of mere interest to New Zealand as a source of supply of wheat than Canada, but nevertheless -a demand, exists for Canadian wheat for admixture with New Zealand and Australian in 3our making. The Canadian wheat has a high protein content which cannot be obtained under the conditions of growth in New Zealand, and the Australian wheat also has qualities which are lacking in tie homegrown product. The quantities of Canadian and Australian wheat imported m a yea*- have been considerably reduced since, through the agitation of the New Zealand growers, a dumping duty was imposed in 1927. The Australian wheat imported in 1927 was valued at about £225,000, less than half tho value of, the previous year's imparts from that country. In the three years before the duty was imposed the Australian imports had been steadily dedining, the figures being £1.033.000 in 1924, £754,000 "in 1325, and £569,000 in 1326. Canadian wheat to the value of £22,000 was imported in 1925, and in the following year it fell to only £2400, and in 292S it was £4824. The United States supplied £10.900 worth of wheat in 1925, and in the following year imports frenp this source disappeared In spite of the duty, millers admittedly require and obtain a certain prnuortion of imported wheat for use in meetine the ficrcr requirements of the bakers. The trade statistics show that the tariff restrictions now in fores have been accompanied by a great reduction in tha volnme ox importations. Thus the New Zealand ccascmers are deprived of any possible benefits, in either cheapness or quality of bread, which might result if the channels of trade in regard to wheat were unimpeded. The dnty~ on wheat is Is 3d per bushel when tha current domestic value at the port of export is 5s 6d, the duty by jd for every jd by which the value rises, and vice versa. The standard Sour duty is £3 IDs for a £l3 10s ten, the rate moving up or dawn by la inversely to price changes of the - same extent.