THE WAIKATO TIMES With which is Incorporated Tho Waikato Argus. SATURDAY, MARCH 29, 1930. THE WHEAT MARKET.

Waikato Times, Volume 107, Issue 17982, 29 March 1930, Page 6

THE WAIKATO TIMES With which is Incorporated Tho Waikato Argus. SATURDAY, MARCH 29, 1930. THE WHEAT MARKET.

The position of the wheat market continues to be engrossing. -Canada and the United States have held up Llieir wheat for higher prices, and the ■ higher prices are not to be had. Canada is supposed to have sold small quantities, but the position is such that they dare not sell freely. The price is already much below what it was when they decided to hold, and if they sold freely it would further depress the price. In the United States the Government has advanced large sums to ' farmers to enable them to hold their wheat, and is conducting a campaign to persuade farmers to sow a smaller acreage, with the object of limiting production to the requirements of their own country'. In Australia, on the oilier hand, the Federal Prime Minister is urging farmers to increase heir acreage, so as to improve the exchange position by increased exports, it is of little use to ask Canadian farmers to diminish their acreage because o much of the country is in the stage where mixed farming is beyond the capacity of the settler. Meanwhile ; thcr countries are taking fright. Germany has increased the duty on wheat Lo a trifle over 3s per bushel, on the - rounds that a crisis would be created f the American wheat were offered for sale. The varying policies pursued reflect the desires of each country and heUveen them both the farmers and die public arc likely to suffer. It is dear that the directors of Canadian diey have made a mistake in withlolding wheat. They could have sold ■ lx months ago for more than they mid obtain to-day, and would have aved interest and storage charges. ;.o doubt they studied the figures of .-.meat production and consumption and • onsidered their policy to ho justified, . -fi they seem to have lost sight of the an-cncy question. The prices of every land of produce have been falling. The cotton growers of the United , States are in the same trouble as the .wheat growers. Coffee has fallen in

price and in demand and das created a crisis in Brazil. An embargo has been placed on the export of gold in the Argentine, because the low prices of produce have upset the exchange. Rubber prices have fallen, and have been low for some years. Over pro- j duction and decreased demand are stated lo be the causes. Wool has fallen Lo an extent which has greatly affected Australia, and has had its effect here. Dairy produce has fallen, but those engaged in the industry may be thankful that they have not suffered lo the extent that others have done. Minerals have been affected in the same way as agricultural produce. It is said that the world’s stock of tin is nearing exhaustion, yet those who produce tin have had to fall hack on working four days a week to bring about some equality in demand and supply. The price of copper is maintained by a combination, but the demand is so small that there are doubts whether the price can be maintained. The condition of so many lines of such different nature shows that the fall in price is not due to local causes, but is brought about by a cause which is common to all. Those engaged in production fall out with those engaged in distribution, and spend their energies in attacking the wrong evil. So far as statistics show, retail traders of all kinds are making undue profits, but it must be remembered that it is not the individual but the class which is doing this. There are 100 many engaged in retail trade, and our methods require improvement. Wholesale traders are not supposed to have engrossed an undue share of profits. Perhaps we ought to look to the baker rather than to the milter in order to find what becomes of the immense protection we give to wheat. / If the currency conditions of the world point or did point to a fall in prices it was particularly unwise to hold up wheat, for a long experience has shown that there is nothing so difficult to corner. None of the other great staple productions iof ihc world has such a wide range of climate in which it can he grown. Within the last few years Canadians have shown that it can he grown much nearer the Arctic regions, and Americans have found that wheat of good quality can be grown, and grown very cheaply, in regions where the rainfall was thought to he insufficient. Western Australia is now the chief wheatproducing State of Australia. If one ! country creates a scarcity by with- | holding wheat, other countries are ! tempted to produce more. Thus wheat I lias its special problems in addition to I that created by currency, which is at present the most pressing problem in economics. The world is wedded to gold, which has certainly very great advantages as a basis for credit and currency,-hut if there is not enough gold to meet requirements It is useless to insist on its excellence. Some 30 to 40 years ago there was a great movement in America to use silver in conjunction with gold as a basis for •currency. Mr Bryan fought a Presidential election on this issue. The late Lord Balfour had leanings towards it. It is useless to-day to think of silver, for with the limited demand that exists for it the supply is much in excess, and if there were any general demand silver could he produced in quantities that would destroy its value. A time of falling values is always one of much suffering; distress among traders and unemployment among workers. It is impossible to say how long prices will continue to fall; prices are determined by the proportion between the gold of the world, and the goods for which gold is exchanged. Fresh gold is continually brought into use, but not in sufficient quantities to meet the growing requirements of the world, with an increased population and an increased capacity of production, and it is possible that prices may continue to fall for some time. To restrict the market by protection is futile. To refuse any modification of wages, as Australian miners have done is worse. To withhold goods in the expectation of a rise causes such mischief as we see in operation in the United States and' Canada today.