THE WHEAT MARKET.

Taranaki Daily News, 12 May 1925, Page 8

THE WHEAT MARKET.

SENSATIONAL DOCUMENT. ALLEGED HUGE CONSPIRACY, Winnipeg (Manitoba), April 18. Tlie most sensational document of the year for the wheat trade was published last night in a statement made by Mr. David Smith, chief selling agent of Canada’s wheat pools. Mr. Smith alleges that a huge conspiracy exists for the manipulation of markets, against the interests of farmers and consumers alike. “It is clearly indicated that the old theory of supply and demand controlling prices at Chicago and Winnipeg has been a mere myth during the past few months,” says Mr. Smith, ‘■'and that, instead of these markets being of assistance in marketing the grain of two continents, they have (brought about a demoralised situation In all importing countries.” Mr. Smith then recalls the recent wild fluctuations—on April 11, advance of II cents; April 13, broke 7; April 14, advance of 5; April 15, broke 7; April 18, broke 9. He insists that the tremendous break from 1 dollar 80 cents was entirely unwarranted. “The world’s wheat situation is such,” Mr. Smith says, “that every bushel of wheat in this country is worth 25 cents more per bushel than the present market price. On March 30 we had acceptances from the United Kingdom of 1,000,000 bushels, on the basis of 1 dollar 62 cents, Fort William delivery. On the same day the Winnipeg market was forced down, closing at 1 dollar 50 cents, or 12 cents a bushel under what Europe paid for Canadian wheat that day. “Powerful American interests spread false reports about Canadian wheat, thus demoralising the maikots and gaining huge and unfair profits.” Mr. Smith alleges also that incorrect propaganda from London aided rich Americans to “rig” the market by running up prices, and then publishing false information to demoralise the markets.

They thus obtained big profits both ways, added Mr. Smith. “The law of supply and demand has gone by the board,” he says, “and Canada’s legitimate market has been filched from her." Winnipeg wheat to-day advanced 8 cents a bushel.