LOW WHEAT PRICES.’

Star (Christchurch), Volume XLIV, Issue 193, 15 August 1931, Page 15

LOW WHEAT PRICES.’

a v/EEi'T.y nrviEW.

Russian Dumping is a Serious Menace. SPANISH REVOLUTION. (By BYSTANDER.) While the world is ringing with the lamentations of financiers, and capitalists and bankers, comparatively few people seem to be paying serious attention to a matter which is at least as calamitous as the inflation of banknotes or the appreciation of gold—and that is the fall in the price of wheat Within the past week wheat was sold j at Liverpool “ at the lowest price for • 150 years”: and two days previously! wheat sold at Chicago down to less j than 48 cents, or two shillings, a bushel, j This is the lowest price ever recorded, i and naturally it has brought down world prices in its train. It is interest- { ing to observe that at least in Britain | and Australia it is held that the chief j factor contributing to this “slump” is , “ the dumping of the products of Rus- I sian slave labour.” According to a great London authority, “ Russia is the biggest disturbing influence ”; and a gathering of farmers and settlers in Sydney has passed a resolution protesting against j "the use of Russian slave-grown wheat , in England,” and urging that its importation be prohibited. The “ Daily Express,” after stating that “ wheat j growers in England are literally on thu j verge of complete and final bank- j ruptcy,” declares that this disastrous j condition of things is “ largely due to the economic war declared by Russia,” which is underselling British wheat by 10s a quarter. According to the British Government experts who have investigated the facts, Russia will have 10.000,000 tons of wheat this season available for dumping abroad; and a scheme for the stabilisation of prices, has been suggested that may help the farmer, though it would certainly infringe “ the sacred principles of free trade.” In Canada, also, wheat pools are to ( operate on a large scale with the same end in view. But throughout the world just now every grain-growing community is protesting against Russian competition and urging that something be done to defend the local producer from “ dumping.” The time has passed when it was possible to ignore the Russian menace. A few weeks ago we were assured that Russian shipments of butter to England • were quite negligible. Now the Empire Marketing Board reports that, during one week in July, Russia sent to Britain more butter than Denmark and far more than New Zealand. The Western nations will do well to be on their guard in time. The Crisis in Spain. Spain has had its revolution, and is now a republic; but its future is still obscure and overcast. It is not yet certain that the exiled royalties have finally abandoned the throne. The exKing Alfonso is reportecT to have announced his abdication, but he is said to adhere to the theory that, while he himself personally has been deposed, the monarchy remains intact. Alfonso has, therefore, renounced his claim in favour of his third son, the only one 1 oi the three boys who seems to have much prospect of good health or a long life. But it is not likely that the Monarchists will be able to assert their principles with any hope of success in the near future. Meantime, the people of Spain are quite fully occupied in settling the internal disorders that have grown naturally out of the transformation *of a monarchy into a republic. One grave difficulty is the controversy over the status of Catalonia. This turbulent province, always the hotbed of revolutionary ideas, has declared emphatic- • ally in favour of absolute local autonomy and virtual independence, w’hile remaining nominally attached to the Spanish Republic. There is strong sympathy for Catalan aspirations elsewhere, but the lead- ; ing Spanish statesmen clearly under- ■ stand the dangers involved in such a i precedent, which might easily herald i the disruption of the whole State, but 1 this trouble is insignificant compared ; with the conflicts now in progress be- - tween the principal political parties. The revolution was brought about by l the Socialists, who now find themselves ; in violent conflict with the Syndicalists, on the one hand, and the Communists - on the other. The Syndicalists strive to organise the whole body of workers ; in “ one big union,” and thus to secure > for the wage-earners definite industrial - ascendancy in the State. The Communists are, of course, - largely under orders from Moscow*, and - they seem to be doing their best to t carry into effect Trotsky’s prophecy - Jihat some day “ Spain would be the Russia of the West.” There is not much r to choose between Syndicalists and Communists in regard to either aims > or methods. Between them the country 5 is convulsed with riotous disorder, and ; the Socialists, who are honestly striv- ? ing to carry on the work of the revolu- [ tion on strictly democratic lines, find • themselves embarrassed and thwarted 1 in countless ways by these lovers of anarchy and tyranny, who have no r more sympathy or respect for democracy or constitutional government than they had for monarchy itself. Liberals and Labour. • Viscount Grey of Fallodon —I would far rather remember him as Sir Edward Grey, and £ wish that he had never changed his title —has been explaining the views that he holds in regard to the relations between the Liberals and the Labour Party. It will be remembered that Viscount Grey, finding, like so many other public men, that it is impossible to work with Mr Lloyd •I George, has detached himself from the main body of the Liberals, and has = been “ploughing a lonely furrow” for t some considerable time. But his fine i public record and his high personal - reputation render him still a force to 3 be reckoned with in the national couns cils. and even to-day he speaks for an 5 influential section of the Liberal Party. 1 He has reminded his audiences that s the Liberals have loyally supported the MacDonald Government in regard to India, fiscal policy and foreign affairs, and apparently he thinks that l this “entente cordiale” should be still ' maintained, so far as these public re- ’ sponsibilities are concerned. But he seems to have become seriously alarmed at the steady change for the worse in Britain’s financial position, and his advice to the Liberals is to “oppose any increases in public expendii ture and vote for a policy of economy, even if it involves the defeat of the i Government.” As Mr MacDonald and his colleagues - have been kept in office solely by Lib- • I eral support, the warning issued by | Viscount Grey must be most unpalatr able to them. Yet Mr MacDonald does | not seem to realise the full fore# id

the Economy Committee’s report, and he is more anxious to assure his followers that this trenchant attack on all expenditure labelled “social reform” is not to be laid to his charge than to deal w’ith the practical necessities of the situation. It appears to me that he is “living in a fool’s paradise,” and possibly Grey’s ominous words may arouse him from his dream. Greenland s Icy Mountains. During the past month the King of Norway signed a formal declaration to the effect that his Government w-as proceeding to annex East Greenland to the Norwegian monarchy. Theoretically, Greenland has been a Danish province at least since 1814, when Greenland and Ireland were adjudged Danish possessions at the close of the Napoleonic wars. B.ut the Danes never attempted to settle or administer the whole of the country, confining themselves almost entirely to the west coast; and the Norwegians have gradually built up on the east coast claims of some importance and value for hunting and fishing. But the Danes maintain, with some justice, that all the other Powers have habitually recognised Danish sovereignty in East Greenland, while Danish scientists have explored and mapped the coast, and Denmark has taken the Eskimos under her protection. It is a question how far the prescriptive rights of Denmark should! be held to entitle her to undisturbed possession, if not actual ownership. Norway is evidently rather doubtful of her ground, for her Government has announced that the annexation decreed by King Haakon has been merely arranged to “create a formal basis for reference to The Hague.” So that, whatever be the outcome of this dispute, we have at least the satisfaction of knowing that it cannot cause any serious trouble, because both the Powers concerned are prepared to accept the award of the Court of International Justice.