WHEAT GLUT IN AMERICA.

Timaru Herald, Volume CXXV, Issue 18620, 16 July 1930, Page 9

WHEAT GLUT IN AMERICA.

Holding Up Prices. ATTITUDE OF PRESIDENT. United Press Association—By Electric Telegraph—Copyright (Received July 15, 7.30 p.m.) WASHINGTON, July’l4. President Hoover is represented as opposing Senator Capper’s plan to purchase wheat. The President does not wish to disrupt the Farm Board policies. He has confidence in their programme. The Board, meanwhile, is understood to wish not to purchase more wheat while earlier purchases remain on hand. It is feared that if the Board buys 180,000,000 bushels more, shortage capacity will become a serious question. The Farm Board is now involved at present prices to the extent of 15,000.000 dollars, on what it is holding. Unless prices increase, it will have to hold wheat for many months, for Mr Legge (chairman of the Farm Eoard) states he will not dump grain on a falling market.

However, it is widely believed that some such action as further purchases will become necessary soon to prevent a further drop in prices.

(A cablemessage from Washington published yesterday reported: “The wheat question is fast assuming the proportions of an important political problem, with the stalwart Republican province of Kansas in an uproar over the Farm Board's failure to act in the face of prices which give the farmer less than, the cost of production, and with the exertion of heavy pressure from within the Republican Party to get the Administration to spend a large amount of money to "peg” the wheat price to enable farmers to obtain a profit on the present harvest. Senator Capper will ask President Hoover to get the Grain Stabilisation Corporation to purchase 100,000,000 bushels immediately and withhold it from the market. Meanwhile the Congressional elections are approaching, and the Democrats are pointing to the alleged ineffectiveness of President Hoover’s farm relief policies, asserting that “ten years’ trial of Republican prosperity is enough.”)