THE WHEAT DEAL.

Star (Christchurch), Issue 12646, 2 June 1919, Page 5

THE WHEAT DEAL.

MILLERS, FARMERS AND GOVERNMENT. STATEMENT BY MINISTER, The Hon AV- D. S. IvlacDonald. l>ofore leaving Christchurch for the south this morning, replied to statements [made on Friday by Air P. Davidson, | president of the Canterbury Chamber | of Commerce, that the wheat deal, from • the farmers’ point of view, is unsatis-' factory. The . Alinister said that although threshing this year was considerably later than it was last year, millers up to Alarch 23 contracted for exactly the same quantity as they had purchased last year, namely, bushels, probably considerably more than- half tlie crop. In addition to the lateness of threshing this year, other difficulties had arisen, including the destruction by fire of mills in Auckland and inter- ! ruption of shipping between the North | Island and the South Island. In any I case nobody could get away from the j straight-out fact that, up to date, ; | millers had contracted for the same' ! quantity as last year. If there had not' .*. j been a shortage of. Atelvet and Pearl wheat a further 250,000 bushels* prdh- . ably would have been contracted for ! this year. From the beginning of May I the price had beep increased by )d a bushel. Some millers in the south-' might not have purchased as much as , ■ usual, but the average purchase obvtously was ns Hindi as last rear’s. It should not be forgotten that tli-e Government bad given an actual gunrv ■ ■ antee to purchase any balance not pur--■chased bv tho millers lip to tho begin-' ning of ftmtember. In the ordinary way of business that assurance must bo security for advances to fanners against their wheat- In. those, circumstances , ’ ibe could not quite understand why there.should bo any trouble in respect . to financial arrangements by-farmers. He recognised from the start that far- V mere bad. done very well under very '■ difficult circumstances. ■ They had to make both ends meet, to keep solvent; but be was convinced if they had fol- ' lowed some of their advisers, and had - had a free market for their wheat, in--*- 5 stead of a State guaranteed l - price.'-' of os 6d a bushel, they would bare had “ a very different story to tell to-day. . He admitted that the Government \. urged them to grow sufficient wheat for the country’s requirements, and that they loyally had tried 'to' comply with the request; but Mr D. Jones, prosMent of the Canterbury executive-of the Tamers’Hnion, speaking oh March ; 13, 1913,. said that ho had discussed trie question freely with fanners during the previous six weeks, and‘ that he was quite convinced that they need not grow wheat that, year on what might be termed patriotic grounds.' ■ Air added that farmers - discussed wheat on a purely business basis, and that if they were asked to grow! it that year it must he on a basis profitable to them. Air AlacDonald continued that he believed, farmers were satisfied with the pripes offered by the Government', and with the ordinary terms of the guarantee, that they would be able to sell on tho usual terms., and that if there was .a surplus the Government would take it over.. He bad written to the Farmers’ Unions in. Timaru and in other places sotting forth his opinion. , He still felt that - the pricesoffered by the Government for next year’s crop would be sufficient' to enable a reasonable area to be pul under wheat, apart altogether from patriotic considerations. Three or four bad seasons bad created an impression amongst farmers that there would be no more heavy yields, but last season’s , harvest completely disproved that supposition.. As far as he oould gather the majority,of tho farmers were satisfied. Some time ago he agreed tc meet a deputation of farmers froiv, Ashburton. They did not attend. Apparently the question was not sufficiently important for them to cavri out- their intention, and lie wes’iincf that they were reasonably satisfied.