THE OTAGO DAILY TIMES FRIDAY, FEBRUARY 23, 1924. THE WHEAT POSITION.

Otago Daily Times, Issue 19108, 29 February 1924, Page 4

THE OTAGO DAILY TIMES FRIDAY, FEBRUARY 23, 1924. THE WHEAT POSITION.

The conference of wheat-growers at Christchurch this week for the purpose of discussing with the Minister of Agriculture the question of the fixation of the price of wheat for the 1924-25 season was evidently of a representative character. The upshot of .the meeting, after Mr Nosworthy had traversed the position that would arise under freemarket conditions, was that a resolution was carried requesting the Government to fix at a specified figure the prices to be paid per bushel for the next season’s crop. The chief interest of the public in the matter lies in the effect of any such arrangement on the price of bread. The rates asked for by the wheatgroovers will dearly mean that there will be some advance in the cost of the

loaf when the time comes in which they will apply, if the Government agrees to them. The question is to be decided by Cabinet at an early date in order that growers may make arrangements for their autumn sowings. The discussion at the conference and its result illustrate once again how unsatisfactory the wheat position is in the dominion. Government control over industry embodies an objectionable principle and is always to be deplored. In this particular instance its results are very much in the nature of a mixed blessing. So far as the application of it can be justified, it is only on the ground that New Zealand cannot afford to be dependent upon other countries for a prime necessary of existence. The weakness of the national position is that insufficient wheat is grown in New Zealand to meet the country’s requirements. The outcome is the resort to expedients of State intervention to encourage the production of the cereal. For, in appealing for the fixation of prices beforehand, the farmers virtually ask for an inducement to grow wheat. In the very exceptional treatment which is acco'rded to the wheat-growing in-dustry—-the most highly protected in the dominion—as illustrated in the existence of an embargo on the importation of wfieat and flour and in the fixation of prices for the crop, there could be no acquiescence upon purely economic grounds. The policy is one, indeed, that economically is thoroughly unsound. The wheat-growers are supposed to be able to give the Government an assurance that, in recognition of the absolute protection that is granted to them, there will be a satisfactory output. Unfortunately, an assurance of this kind is not ’of much value. Whether it is honoured or not may depend on circumstances entirely beyond the control of the fanners. On the other hand, it must be recognised that, if an expedient is to be employed of the kind that is again proposed now is the time for the fixation of prices, in order that the supply of locally grown wheat for the 1924-25 season may be as large as possible and that farmers may not be too readily, tempted to use their land for some other purpose than wheatgrowing.