Manawatu Evening Standard. WEDNESDAY, DEC. 21, 1932. THE WHEAT PROBLEM.

Manawatu Standard, Volume LIII, Issue 21, 21 December 1932, Page 6

Manawatu Evening Standard. WEDNESDAY, DEC. 21, 1932. THE WHEAT PROBLEM.

The problem of finding markets to absorb the world’s wheat production has led to suggestions from the United States and Canada of methods to limit the output. Farmers of Alberta (Canada) have gone so far as to propose a “strike” in 1933. Though the seriousness of such a step was urged, a resolution not to sow wheat next year is reported to have received enthusiastic assent, and it will be submitted to the annual conference of the State’s farming interests next month. From the United States there has emanated the suggestion for international control of wheat production with the object of reducing the present world surplus and stabilising the price. Canadian and Australian observers in the United States were declared to be showing interest in the proposal, one of whose sponsors asserts that the adoption by Congress of a domestic plan to limit the acreage of individual farmers would set forth the means whereby Canada, Australia, the United States and Argentina could effectually carry out an agreement for the curtailment of production to nearly balance the demand and do away with the unsaleable surplus. Coincident with this report appeared a message from Sydney recording a bountiful harvest with tremendous activity throughout New South Wales. A record yield of 67 million bushels has been obtained, while in Western Australia there is an improved harvest. \ The Argentine also has published statistics showing a greater production than last year of 5,500,000 bushels. The increase in the quantity of wheat available for the world’s markets will, without stimulated consumption, add to the problem of the surplus. For a time it was hoped that marked relief would come from the fact that the harvest in the Danube States had failed, but the principal importing countries of Europe have garnered large crops. In the Northern Hemisphere the crop is 33,000,000 bushels above the 1930-31 figures. The collapse of world wheat prices has been one of the most aggravating features of the trade depression, and has brought ruin to many farmers in. the wheat areas. Efforts to improve the prices by artificial means have failed. Canada tried pooling her stocks to obtain a higher price than the 4s 4£d then offering, but the importing countries, with the exception of Britain, resolved that if higher prices were to be forced on them by artificial means the prices would be paid to their own producers, larifis to protect their own wheat growers were imposed, France, Germany and Italy being _ prominent in such action. With a bountiful harvest later the pool remained aloof from the market, but there was no stimulus to prices. Subsequently, the United States Wheat Board made a great endeavour to get better returns for its farmers, with no result. Today, it was recently commented, the price is the lowest of which records bear witness. On June 30 last the world surplus was estimated to be 338,000,000 bushels, and similar figures were recorded three years ago. _ The effect of this huge quantity of wheat awaiting consumption may be more fully realised when it is stated that, in the years prior to 1929. a world surplus of 100,000,000 bushels was held to be over large. The problem before the wheat producing countries is to get rid of the surplus. The Australian grower of late has been seeking a bonus on production, but $lO Federal Government has preferred to give assistance by way of a monetary grant to necessitous cases. In New South Wales the State Government has supplemented the allocation with

a payment of £‘300,000 which, it is hoped, will assist the wheatgrowers to carry on. But such aid is purely adventitious, and some means to definitely increase consumption would be of the greatest benefit to the world growers. To reduce production on sound lines presupposes agreement among the producing countries, but there is the danger of one or more refusing so as to take advantage of better prices from a diminished yield. The problem is a baffling one for the great wheat countries of the world, and here again excessive tariffs in Europe are the greatest obstacle to overcome.