SECOND WHEAT CONFERENCE.

Timaru Herald, Volume CXXXIV, Issue 18834, 24 March 1931, Page 9

SECOND WHEAT CONFERENCE.

Russia Well Represented. AMERICA FORSEES DILEMMA. United Press Association—By Electric Tnlegranb—Conyrlght (Received March 23, 7.15 p.m.) LONDON, March 22. The Rome correspondent of the “Morning Post” reports that the agenda for the second wheat conference on Thursday is fixed to bar political considerations, but the presence of a strong Russian delegation gives it a distinct political as well as economic character. Fifty-four countries will be represented. It is obvious that if the wheat-growing countries agreed to curtail sowings, Russia would have a free hand to dominate the wheat of the world. America, which has foreseen the dilemma, has only sent observers, and thus will not participate in a scheme which would entail persuading American farmers to reduce their acreage in favour of Russia. POSITION IN UNITED STATES. STATEMENT BY FARM BOARD. United Press Association—By Electrla Telegraph—Copyright (Received March 23, 7.45 p.m.) WASHINGTON, March 22. The Farm Board has announced that it will not authorise the Grain Stabilisation Corporation to make wheat stabilisation purchases from the 1931 wheat crop, and will not attempt to maintain wheat prices at an artificial level beyond May, 1931. The Board offered the following statement: “Stabilisation operations are emergency measures, and entail heavy cost. The Stabilisation Corporation has acquired, and is acquiring, a very large stock of wheat, and cannot indefinitely buy more than it sells, or indefinitely hold what it has bought. It cannot follow a regular policy of buying at prices above the market, paying heavy storage charges, and selling below cost. Farmers know this, and would not ask that it should be done. It is too early now to set forth what the sales policy of the Stabilisation Corporation will be in the new crop year, except to say that the stabilisation of wheat supplies will be handled to impose a minimum burden upon domestic world prices.” After emphasising the necessity for acreage reduction, and an increase of co-operative marketing, the statement continued, “in sight of the foregoing facts, growers must recognise the responsibility resting upon them.”

The Board states that it recognises that the problem of marketing the present holding at some future time is a tremendous one, and explained that it has no intention to do any dumping of wheat it now controls. The announcement finds the Board possessing approximately two hundred million bushels of wheat. Some quarters estimated that by June the Board will possess three hundred million bushels, and will control virtually the entire surplus of wheat in the United States.