PURCHASE OF WHEAT

Otago Daily Times, Issue 16577, 28 December 1915, Page 6

PURCHASE OF WHEAT

A GOVERNMENT TRANSACTION. GPm UJHTBD ?uss Absociatxok.) "WELLINGTON, December 27. The Auckland Star published the follow- ' l ing paragraph, from the Montreal Star ■ dealing with New Zealand's wheat purchases in Canada: —"When the Governmdnt of New Zealand went into the busi- ' ness of buying wheat in Canada it got stung. In plain language this appears, to be the outcomo of the transactions. Ono ; million bushels were ordered, and 900,000 ■ of them are in the Montreal elevators still. The balance has been shipped. The un- : fortunate part of the affair for New Zealand is that it paid high prices, and that since then the market has fallen, and while the wheat bought on account of that' Go- > ■, vernment is still in store in Montreal this . season's crops in New Zealand are large.'' In commenting on this to-day, Mr Massey stated that it was quite correct that grain in' the. elevators totalling 1,000,000 Dushels was bought as a precautionary measure. Only 100,000 bushels were shipped, and ■■■ then a drop came on account of the - American wheat prospects and the possibility of the' Dardanelles being opened. The Government was not disposed to realise at a loss, and it made arrangements 'with the Canadian Government to hold the wheat till suitable opportunity offered. It could be. sold to-day, but the price was tho question. 'While the Prime Minister wasspcak- ' ing he received a cablegram from Canada 'stating that wheat was now 1 dollar 20 ■ cents. "Thus," he said, "we would not loose much if we sold to-day, but the Canadian Government is doing its best for us, and we shall lose very little." Mr Massey added that the £90,000 vote m the . last Estimates was for a deposit on account of this purchase and the payment of outstanding accounts on the previous purchase.