The sun., 1919-08-05
CANADA Is ANXIOUS
OYER GRAIN PRICES
Centralized Purchasing System
Of Europe Regarded as
Unfavorable.
TO FIND FOR HERSELF
Farmers Think They Hold
Poor Cards in Three Cor
nered Game.
TO FIND FOR HERSELF


speetaI Correspondence TO the Conddton
Section Of THE SUN
MONTREAL, Aug. News OF the or
sanization Of a centralized purchasing
system for foodstuffs for the allied Eu-
ropean nations was no surprise to the
Canadian grain trade. which has re-
garded such a step as inevitable ever
since the failure of the effort to start
open trading in this country. The CHIEF
interest in Canada now Is directed not
TO the question of how tho organized
buyers OF the European Governments
will get along against the organized
sellers of the United States Government
but to the inquiry how the Canadian
wheat crop will prosper in what most
grain men here regard as very pre-
carious trip Between the devil and the
deep sea.
1t remains to be seen what will be
the policy of the European official buy
ers toward this country, which has been
in the war since the beginning ana Is
consequently hard UP for cash and In
urgent need of the best terms 1t can
get for its chief export product, but SO
far there Is no indication that the pur-
chasing Of wheat for Europe Will be
anything but a cold blooded business
proposition. 1t thus resolves itself into
a three cornered game, in which Canada
has to fend for itself against the desire
Of the European buyers to get their
grain at the lowest possible price ana
the desire of the American Government
in the person of Mr.. Barnes to get
price that will recoup 1t for the very
| has r a n
| to American farmers. There Is dis
tinct and rather aggrieved feeling that
Canada starts this game with poor
cards.
1t is now known that the motive
which chiefly led to the opening OF the
Canadian grain market some weeks ago
| was the belief that this action would
stimulate the British authorities to per
NIT their own grain dealers to resume
open buying and selling.
Open Trading Recognized.
The British Government had recog-
nized the desirability OF open trading
by substituting its grain firms to enable
them to keep alive during the period OF
Government dealings and 1t was sup
posed that II woub welcome the chanc"
of letting them resume their normal
activities and earn their own living. II
was understood that their purchases
would have to be supported by Govern
ment credit, but with an open market
registering q natural supply and de-
mand price for wheat 1t was felt that
there would be no moro difficulty ABOUT
this Government credit than about the
bank credits always extended to grain
dealers under similar circumstances.
! But nobody will ever know whether
the British would have acted on the
| example thus set them by Canada, TOT
| the example did not work out at all in
the way that was expected. And Cana
dian grain men are unit In believing
| that 1t was the United States Grain Con-
| troll that spoiled their plans. They are
| convinced that the prices which were
paid for Canadian futures while tne
| market was open were prices that couio
moi have been paid by anybody with any
Intention Of working the Canadian crop
| for export, or indeed by anybody ex-
cept the interests most concerned In
keering the Canadian crop from SOM
peting on the export market
IT do not believe, for a minute that a
single Canadian bought wheat at the
prices that prevailed during the time
the market was OPEN" said one well in
formed grain man to THE SUN CORE
spondent. For one thing. no Canadian
bank would lend money to carry wheat
at such high prices"
The theory is that a very moderate
amount of buying at this high leve
would have sufficed to establish
determination among Canadian farmers
not to let their wheat so at prices materi
ally below that level that, therefore, NJ
canadian wheat would have been worked
for export and that the Canadian croI
would have been tied up, mostly In thu
farmers hands. until the the American
crop was safely of the hands of thu
! American controller. After that tn
price would have been allowed to q
where 1t would. and the Canadian iarHi
. ar would have been forced to take wha
! he could get on q market that ha'
slr eady supplied its urgent needs Fea
OF this situation led to the closing OF tn
Canadian open market and the decision
TO establish a minimum price. expected
to be $l.75, to be guaranteed to tn
farmer by the Canadian Government