A TEST OF STRENGTH

Evening Post, Volume CVIII, Issue 151, 23 December 1929, Page 14

A TEST OF STRENGTH

It is evident from the above cablegrams and others that have preceded them that ■wheat growers of Canada and the United States have decided to test strength against the world. In Canada the holding back of wheat in order to make the price growers demand had gorged the elevators, rendered idle an enormous amount of railroad and lake and ocean transport, and caused dullness of trade generally. The business summary of the Bank of Montreal stated in November that the shadow on the picture was cast by crop failures. The prairie provinces will produce approximately 270,000,00 bushels of wheat, only one-half that of 1928, and the smallest yield for five years. Some compensations are a high grade of grain, less cost in harvesting and marketing at probably higher prices. It ia suggested that the consequence to general trade of the smaller harvest may not be immediately apparent, and that-no seriously detrimental* effects are to be apprehended, while other factors are working to maintain prosperity. Ocean and lake vessels engaged in grain carrying have had a poor season owing to the unreceptive condition of British and Continental markets, whose -wheat supplies have been drawn extensively from the Argentine and Australia. In August, for the second month in succession, the foreign trade of Canada decreased in value, having been 210.135,000 dollars, against 228,079,568 dollars 'in the corresponding month of last year. More striking is the fact that for the first time in four years imports fell, off. Deductions, the summary adds, cannot be made from the movement.of a single month, but it is not unreasonable to infer that the less favourable crop yield will halt the long continued expansion of imports. In the five months ended August, imports exceeded exports by 65,860,000 dollars.