NEW GRAIN BOARD

Otago Daily Times, Issue 22609, 28 June 1935, Page 9

NEW GRAIN BOARD

ESTABLISHMENT IN CANADA VANCOUVER, June 15. Nationalisation of Canada's grain business became certain yesterday, when Parliament passed the second reading of a radical measure without an open voting protest. The Prime Minister, Mr K. B. Bennett, admitted that the Bill was a drastic departure in the way of State intervention, but said it was necessary by reason of Canada's tremendous wheatholdings. There is an agreement between the Government and the Liberal Opposition regarding the need for extraordinary action, but divergence of opinion has developed as to whether the new Grain Board should be set up as a permanent policy or a temporary expedient. The emergency has been brought to a climax by the illness of one man, Mr M'Farland, who for four years has been supreme dictator in . Canada's wheat trade with the world. Literally, Mr M'Farlaud's health has broken in trying sincerely to admimster his enormous task, without salary. " International wheat speculators are short 35,000,000 bushels on Winnipeg Exchange," said Mr Bennett. He added that his Government would never consent to dump wheat on the market, forcing down prices so that speculators could make money at the expense of the Canadian farmers.

Dealing with Mr M'Farland's trading, Mr Bennett claimed that the Government agency was forced tc makt hedging purchases in order to keep the market in even fair shape. It was a choice between hedging and chaos. He declared that the establishment of the new Grain Board in Canada would encourage the establishment of similar boards in other export countries. The Royal Commission inquiring into the distressed situation of the Australian wheat producers, he said, had recommended that the Australian Government establish a national wheat board, and he understood that a number of farmers' organisations in the Argentine were actively pressing for similar action there. " What is known as the open market system, which depends upon speculation by the genei-al public for its existence, has been tried in Canada and found wanting," added Mr Bennett. He insisted that Canada, as the world's largest exporter, had a greater responsibility than any other country and must deal with wheat marketing as an international problem. When Mr Bennett had finished, the Bill passed the second reading without dissent.