THE WHEAT PROBLEM

Otago Daily Times, Issue 16348, 3 April 1915, Page 12

THE WHEAT PROBLEM

LOAN FROM NEW SOUTH WALES. POSSIBILITY OF DEMAND FOR RETURN. (Faou Oor Own Correspondent. ) WELLINGTON, April 2. . Early in the history of the wheat crisis in New Zealand consequent on the outbreak of war the dominion Government •purchased 100,000 bushels of wheat from the New South Wales Government, giving an undertaking, however, that if the wheat should be required in New South Wales later a similar quantity should be returned by the New Zealand Government or, rather, be sold to the New South "Wales Government at the original purchase price. In other words, the transaction was a loan rather than a sale.

The Prime Minister (Mr Massey) has now received advice from the New South Wales Government that the wheat may be required in that State, and that he may therefore have to return it. He informed a reporter to-day that he hoped to be able to repay this loan out of the wheat aver which ho had secured an option in Canada, as presumably there would be no shortage 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 we were in an exceedingly awkward position. 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 tirrie to save lis from a flour famine. The cause of the high price of Canadian wheat to us is the enormously high cost of ocean freight. The best offer we have for the carriage of wheat from Canada is £4 4s per ton and as a ton contains 37 bushels this works out at 2s 4d per bushel. Don't suppose that we are agreeing to pay these rates. I am. endeavouring to make better arrangements. a

"I have here a return prepared by the Registrar-general showing the prices of wheat and flour in New Zealand and in the Australian States. In Christchurch, which is our wheat centre, wheat is quoted at 6s 9d per bushel and flour at £16 10s. per ton. In Melbourne the price of wheat is 8s 6d, and that of flour £18 Ss. In Hobart wheat is 8s and flour £17.