CANADIAN WHEAT CROP

Taranaki Daily News, 3 October 1929, Page 13

CANADIAN WHEAT CROP

PRICE FIXATION ATTEMPT EUROPEAN BUYERS HOLDING OFF. BRITISH MINISTRY APPROACHED. By Telegraph—Brees Assn. —Copyright. Australian Press Association. Received Oct. 2, 5.5 p.m. Winnipeg, Oct. 1. Movement of grain from Western Canada is practically at a standstill because of the congested conditions at the head of the Great Lakes and at Montreal owing to the lack of European orders. A joint statement issued by Sir. Henry Thornton, president of the Canadian National 'railways, and Mr. E. W. Beatty, president of the Canadian Pacific railways stated: “The difference-.in price between Winnipeg and Chicago is largely due to the opinion of owners of grain in the west that the high quality this year justified a higher price, and that as there is sufficient storage in Canada it is being held in reserve for that purpose. British and Continental buyers, on the other baud, believe they can obtain present requirements from Argentine and the United States, and that it is unnecessary in the meantime to purchase Canadian wheat at a higher price.” ■Both railways to-day effected restriction of ear supply for prairie grain consigned to the head of the lakes. There the elevators are practically filled, while elevators in the interior have plenty of space to spare. Montreal has 51 vessels in port to unload with the harbour elevators practically filled. Orders for trans-Atlantic shipment are rare, and shipments of Canadian grain from Montreal are only 46 per cent, of the amount shipped this time last year. A later message says the restriction in the railway car supply for - prairie grain consigned eastward went into effect in the railways to-day, and over 72,000,000 bushels are stored in Lakehead elevators which are dangerously near working capacity. Fifty-eight Lake freighters at Montreal and 'Port Colborne are unable to unload. The congestion shows no signs of alleviation. Mr. E. D. Ramsay, general manager of the wheat pool, stated that the wheat sales to Europe could be effected at the present time, but only at the cost of serious reductions in farm income. The restriction of Canadian business on the world situation justifies the higher prices. Traders state that the purchase of wheat by the British Government will be discussed by Mr. J. H. Thomas and the wheat pool officials in London. It is believed here that the bulk purchase plan is looked upon as the last means of solving the congestion situation. The suggestion follows outright expressions of disapproval of the plan of grain storage in British elevators.