The sun., 1918-11-26
SURPLUS OF FLOUR
CONTINUES LARGE
Government Chief Buyer, TAX.
ing 100000 Barrels in
Two Weeks. &c..
NO CHANGE IN THE PRICE
Great Quantities Available Be-
cause Of the Use Of
Substitutes.

- Ctuuy Oh tho reports OF Tour pro-
duction at leading points In tho coun-
try. as given by milling journals. indI-
Gated that there has been about the same
amount OF -four produced this year as
last year. There was moro -four pro-
duced during July and August this year
than last, but owing to tho immense out
put Of nour which took place during the
latter part of october ana November a
year ago. the condition has been bal
anced. During this time the exports OF
flour have been tust about the same. one
year and the other, yet on top OF this
condition there has been accumulated
such a stock OF four In the country that
not only Is the demand almost at
standstill.' or was for commercial pur-
poses. but tho Government, In tipe past
two weeks has bought about 4 ,3Oe, 900
barrels OF flour. getting this amount with
only slight change in price, and about
100000 barrels OF this -four was ac
Quired with practically no change in
price, indicating that there was a very
largo surplus of fiour available, and had
been accumulated under milling opera
tons which were no larger than last
year. g. go. 49,
This shows what the effect OF the use
OF substitutes has been this year. Both
years the country started of with prac-
ticalfy no -four stocks on hand carried
over from the previous year. and during
July and August year ago there was
very little flour made. due to the fact
that the movement of new wheat was
extremely small. pending the settlement
OF the price. Later >a movement was
liberal and the milling was increased.
This year with the stabilized price the
movement was large at fret and stocks
piled up enormously, giving ample sup
plies for milling.
On the other hand the use. OF substi-
tute -four, which was in effect this year
and not last year. has resulted in the
accumulation OF large stocks OF flour in
the country. under milling operations for
the Ave months about the same as last
years, and this situation resulted in
decline in the price of flour to a point
where there was absolutely no profit in
the manufacture for the mills and they
only kept going in order to keep their
! forces intact With the recent buying
| by the Government there has been a
rally in the position of the market, and
much more cheerful tone has O.
veloped.
AS regards the question OF exports
| this year an estimate by q prominent
Western miller returned from Washing
! ton was that the total exports would
probably reach $4,000, 900 barrels, which
| would be about the same as last year.
counting in the exports to the expedi-
| tionary forces last year. This total OF
25. 00o, 900 barrels Is considerably larger
than originally planned, and has been
| brought about by the fact that much
larger requirements developed from the
Allies while the signing OF the arinistice
| resulted In the sudden emergency need
to feed not only the neutralS but the
countries which had been under the pres
! sure OF the German yoke and were on
the verge of starvation. The heavy buy
ing recently by ts-s Government is I'M
derstood to have been TO provide immedi-
ate supplies OF -four for distribution to
the needy sections abroad, and TO ship
Il over so that when the Allied Food
Conference In London has reached a de-
cision as to where il is most needed Il
can be Immediately distributed 70 those
points. With the change In the substI-
tute regulations and the fact that use
OF substitutes Is not needed, there will
naturally be an Increase IN the use OF
-four in this country, but the fact that
the conservation programme Is TO be
continued will mean that there IS no let
up as yet, and probably will be none. in
tho use of bread, and the conservation in
distribution will mean that there will be
great economy for the rest of the year
in the distribution. and this will have 4
direct bearing. on the total home con-
| sumption OF -four during the season.
While new rules have removed restric-
tons as to flour extraction. the high
price Of -four on the ono hand and the
low price Of feed on the other does not
offer any stimulus to change the ex-
traction. In conservation week, which
Is at hand, the need of the greatest care
in the distribution OF all food products
In this country VII DC emphasized. par
ticularly the need OF conserving -four so
as TO have supplies for shipment to the
starving people abroad.