A BIG SURPLUS,

Star (Christchurch), Issue 16543, 29 September 1921, Page 2

A BIG SURPLUS,

NEW ZEALAND’S WHEAT.

It is expected that next season thera will be a big surplus of v beat grown in New Zealand, estimated by some authorities at between two and three million bushels. The matter was discussed at yesterday’s meeting of tbe North Canterbury executive of tho Farmers’ Union, when a notice of motion standing in the name of Mr D. Jones, M.P , who was unable to be present, was tabled as follows: Seeing that a. conference will bo bold in February between representatives of tbe wheat-growers and the Government to consider whether tbe world parity of wheat justifies an increase in the guaranteed price, this executive is of opinion that if, at that date, statistics show that there is a surplus of wheat in sight, this surplus should be sold immediately at the price fixed, in flour if possible, in order to remove the danger of any possible glut in the market, and assist the financial position. The chairman (Mr W. A- Banks) said he was strongly in favour of the resolution, and bo desired to move it on Mr Jones’s behalf- As far as tfcev could see, a great quantity of wheat was going in. It seemed to him that any way that would help to improve tbe financial position should be attempted. and one way of doing this uas to dispose of the surplus wheat, of which there would probably be two or three million bushels next season. More money was required in the country, and this proposal would help the situation both for th© farmer and the Government. Mr T- Henley seconded the motion. Mr W. Mulliolland supported tho motion, stating that it would be very harmful to the wheat industry if next August there was a feeling in the minds of the farmers that there was a big surplus hanging over their heads. Undoubtedly such a feeling, if it existed, would load to a big decrease in tho area sown in wheat- He believed that there was a possibility of prices falling during th© next few years. The chairman asked Mr Mulliolland if he really believed that the prices were going to fall for wheat. He, for one, would liko to challenge the statement.

Mr Mulliolland said there was an impression among emit© a number of farmers that prices were going to fall during the next few years. But he did not think there was anything to b© pessimistic about, because the price movement would extend over a number of yearsMr G. Sbeat said that what was necessary was sovereigns, and the best way to stabilise trade and to improve the financial position waa to dispose of the surplus wheat in Britain. Ho hailed the resolution with delight, because it seemed to him to be a big thing for the country. He had noticed in the newspapers that meetings were being called to proride employment for meu out of work, and the men had actually had tho graaionsne#s to work for 13® a day. A voice 3 Fifteen shflEngs 1 Mr Sheat: Some have offered to work for thirteen shillings, but we poor cockatoos have to work for nothing. After further discussion the motion was carried. Mr W. Mulholland gave notice of motion as follows:—'‘That the Government make provision to finance next year’s wheat purchase, eo as to ensure growers receiving payment early in the season, with a view to earing the continued difficulty fn rural finance. An advance, say SO per cent on machine-owners 5 certified returns, accompanied by growers* declarations, on completing sale to Government broker. No interest to be payable, but growers to forfeit monthly increments, the wheat to be insured.** QUESTION OF DISPOSAL. £Fbom Ocr Correspondent.] W ELLINGTON, September 28. Th© prospect of New Zealand having an exportable surplus of wheat prompted Mr Bitchener (Waitaki) to ask the Minister of Agriculture whether he will take into consideration at the earliest possible moment arrangements for the Government purchase of all prime milling wheat of the 1921-22 harvest. “ There is every indication of a bounteous harvest and a probability of two to thro© million bushels surplus, 55 he said, ‘ { also as a great number of wheat growers have their finances bound up in the Government purchase of wheat and arrangements for the same, an early intimation from him would be universally we loomed in the South Island.” The Hon W. Nosworthy, Minister of Agriculture, replied: “I have already instructed the "Wheat Controller to submit a report on this matter as *arJy as possible.’ 5