THE RISE IN WHEAT.

Poverty Bay Herald, Volume XXII, Issue 7309, 19 June 1895, Page 2

THE RISE IN WHEAT.

The representative of a Southern cpiitemporary recently interviewed a lending Punedin merchant upon this subject. As any remarkable paoyement in the produce market is regarded, with interest in tl}

district, we publish some of the answers given to the reporter's queries. Regarding the cause of the sudden increase in price, the following explanation was gi yen : — " There is a general shortuge in wheat, and that is, of course, one of the reasons, and, I think, the principal one. The first indication I and others noted of the increase in price locally was in Ashburton, where a large sale was held. The firm in question had got into financial difficulties, and were indebted to the Bank of New Zealand in a large sum. At Ashburton, too, the Globo Assets Company (attached to the Bank of New Zealand) have a flour mill, and when the firm in question sought the protection of the Bankruptcy Court, the grain, etc., belonging to the firm was pub up to auction. The manager of the mill was instructed to buy, and he, on behalf of the bank, purchased the bulk of the wheat — a very large quantity at prices ranging from 2a 6d to 2s 10|d. Of course it did not matter what price they paid, for the firm were indebted to them for such a large amount. The 2s 9d per bushel is equal to 2s lid here, owing to the difference in terms. This, of course, made a difference in the local supply, and, as there was a general shortage, and indications of au active market at Home, prices soon went up. He did not think farmers generally would benefit by the increased price. Some of them had held, but their numbers were very few. The millers, principally, who hold the bulk of the wheat, would derive most benefit." " The wheat was bought at from 2s 4d to 2s 6d per bushel just after the harvest, and of course those who made large purchases will reap a substantial benefit. I have heard that one miller made as much as L2OOO over one purchase of wheat at Ashburton." Asked the question "Do you think the present prices will be maintained,? " he answered, " Yes, I think that there will not be ia reduction until next harvest, unless, bf course, the Government take action in the matter. I mean that the price will be maintained unless the Government decide to take the duty off flour and wheat to prevent prices rising too high. At the present time the duty on flour is LI per ton, and the duty on wheat is s£d per bushel. If it is decided that either of these duties shall be knocked off it is to be hoped that the duty will be allowed to remain on flour, and the duty removed from wheat. This will give the mills in the colony a fair chance, for the grain will then be worked here in rhe usual way. If flour is admitted free it means that some of the mills in New Zealand would have to shut up."