The Glasgow courier., 1915-12-10
WHEAT SEIZURE
AFFECTS MARKET
Seizure of Grain by Allies Makes
Market Unsteady.
TEND TO LOWER PRICES
Governments Buying of Wheat in
Open Market and Commander
ing Vessels Causes Slump.

These are uneasy times for the
American grain exporters. They have
chartered ships at almost any price
demanded by vessel owners, expect
ing that the gouge would come out of
the American producers and the Eur
opean consumers. High ocean rates
had no terror for them, as they count
ed confidently on their easy ability to
pass them along.
The course suddenly taken by the
British government in requistioning
ships at it's own prescribed charter
rates, through the Canadian govern
ment, and communicating 100000
or 20,O0OO0O bushels of Canadian
wheat to be shipped across the Allan
tic in it's own requistioned ships
struck the exporters like bolt from
the blue. 1t means that they must
sell their wheat in the European mar
kets in competition with government
bought wheat that will be carried
across the sea at probably half the
ocean rate that they stand contracted
to pay. John Bull has turned the
tables on them.
This action by the British govern
ment was foreshadowed in a recent
editorial in the Liverpool Corn Trade
News. "There is a growing feeling
among merchants" said the Liver
pool trade authority. "that shipown-
ers are exploiting the needs of the
nation to an unwarrantable extent
with the excessive rise in freights.
There is no disposition evident that
merchants grudge shipowners a legi-
innate profit, or even very liberal
profit, at this abnormal time, but that
there should be reasonable limit OBJ
served by the owner is felt to be nec-
essary by all. Surely, shipowners
should be satisfied at times like the
present with reasonable profit, and
therefore the attention Of the gov
ernment is directed toward a guaran-
tee to him of his expenses and 10
per cent return on his capital.
"1f the government were to take
over the mercantile fleet at flat
rate, leaving each owner to manage
his own vessel, at the same time pro-
hibiting charters for making re-
letting profit, excepting perhaps a
moderate commission, the present
high freights would no longer obtain.
The rise in freights can not be right
fully absorbed to any great pressure
of grain for shipment, as the demand
in Europe for imported grain is no
greater than a year ago. The govern
ment has released several steamers,
and is now regulating certain voyages
and preventing undesirable deviation
so as to get more out of each vessel"
AS to the effect the action of the
British government will have on
wheat prices in the United States the
experts are divided and the trade is
"all at sea-" When rumors that gov
ernment activities impending gained
circulation at New York week ago
"these developments" reported the
Journal of Commerce, "led to some
speculative buying of wheat in the
hope that exports will be increased"
The Journal thought it probable that
the allied governments "might" take
possession of the entire situation and
carry grain and munitions as a gov
ernment service"
On this theory grain prices shot
upward in all the markets of the Uni
ted States when the announcement
was made that Canadian wheat had
been Communicated, but the sharp
rise was followed by mild reaction.
apparently the most popular opin-
ion acted on by the rank and file of
dealers in wheat" according to the
Associated Press market report from
Chicago, twas that the huge seizure
in Canada showed the urgency of the
European need for breadstuffs from
America"
But, on the other hand, leading ex-
porters declared that the British gov
ernment was evidently determined to
minimize the price of wheat and that
the preference given to the immense
surplus in Canada would surely re-
duce export business from the United
States.
The fear is not unreasonable that
this action by Great Britain may ex-
ert bear influence on prices. To the
extent that it may check or stop buy
ing by independent American export