CANADA’S WHEAT

Wanganui Chronicle, Volume 74, Issue 139, 15 June 1931, Page 7

CANADA’S WHEAT

GOVERNMENT’S PLANS. UNITED STATES UNEASY WASHINGTON, June 12. A belief that the farmers may ask Congress for an export debenture or some other weapon in foreign markets, should the proposed Canadian cut in freight rates on wheat be reflected in export quotations, has arisen in political and agricultural circles. Senator Borah (Idaho) looks upon tho Bennett Government plan to absorb 5 cents a bushel of transportation charges to the seaboard as an export subsidy, comparable in some respects to debenture stock, as previously proposed. A debenture certificate on wheat would be worth 21 cents a bushel or one-half the amount of the tariff. A co-operative association or grain dealer desiring to ship wheat abroad would receive the world price plus 21 cents for each bushel exported. Opponents say the plan would lead to the dumping of United States surpluses and invoke serious foreign retaliation. Some visualise in the export debenture an incentive for world wide price slashing and the subsequent situation will be worse, or at least no better, than that for which a remedy is sought. That view is taken notably by the Farm Board, which also opposes further emergency stabilisation, which has already burdened it with almost the en tire United States carry-over.