San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-10
New Tariff Will Keep More
Cheaply Produced Prod
uct Out Of u. S.
STILL HAVE PROBLEMS
Canada Expected to Pass
Some Sort Of Retalia-
tory Measure.
BY J. C. ROYLE.

New York, March 1O.-Wheat grow
ers throughout the North and West
undoubtedly have been greatly encour-
aged by the action of President Cool
idge in advancing the tariff on wheat
10 cents q busheI. They feel that this
action under the flexible provisions
of the tariff has relieved them of the
fear of flood of Canadian wheat into
the United States. However, neither
the growers nor the bankers and bust
) ness men of the wheat growing COM
munities feel that the Presidential ac-
ton which becomes effective in April
will relieve all difficulties which face
them.
The United States, they point out,
grew far more wheat in 1923 than this
country alone can hope to consume
this year.
The new tariff impost of A. cents a
bushel will keep the more cheaply pro-
duced Canadian product out of domes-
tic markets, but it will not obviate the
competition of the Canadian grower
in the foreign trade. In fact. any in
crease in the price of American wheat
Will but serve to widen the margin
by which Canadian growers can sell to
Europe and the Orient.
BY the time the new rates 90 into
effect, this margin will be still futher
increased by the advantage Of freight
rates. Canadian shippers, when naviga-
ton opens on the Great Lakes. can
send their wheat from Fort William
and Port Arthur to Montreal cheaper
than the American shippers of the
Northwest can transport their grain
from Duluth to New York. Boston or
Philadelphia by a combined rail and
water route.
Russia a Factor.
The Canadian law which provides
that all vessels loading grain at Fort
William and Port Arthur shall publish
their rates and the terms of their
charters and which kept American
owned vessels out of the Canadian
grade trade last year. still is in eff
feet. But 1.-THE terminal facilities, lack
of which caused delay in Montreal for
shippers in 1923, have been improved
and that port probably will be in a
position to handle a tremendous guam
tity Of wheat this spring.
The Canadian growers at least have
equal shipping facilities with the
American farmer on. the Pacific Coast
and an even chance TO capture the
trade to the Orient. which has become
world factor in the last few years.
Finally financiers seem inclined TO the
belief that the recent recognition of
the Russian Soviet govetnment by
some of the other European nations
will result in a revival of the wheat
trade with Russia through the Baltic
and Black sea ports.
The foreign sale of American flour.
IL is predicted by some wheat men. will
be even more affected than raw wheat.
The new rates will increase the iIhport
duties into the United States at 81 04
a hundred pounds. This. it is asserted,
will increase the price of flour in this
country. Mills throughout the United
States. however, are not now running
full time and millerS do not seeehOw
an increase in the price of flour will
serve 10 increase consumption.
Canada May Retaliate.
The amount of wheat which will be
used in the form of stock feed still can
not be definitely determined, and this
is decided factor in the wheat grow
ers situation. The ranges. with the ex-
ception of those in parts of Califor-
mia, have been in excellent condition
this winter and cattle in many sections
.have come through without the neces-
: sity of heavy purchases of fodder by
growers. Then. too, it is TO be noted
that the new tariff provisions include
a decrease of 30 per cent in the rates
on mill feeds. However, the high
price which has obtained for corn for
many months, undoubtedly has turned
many feeders toward wheat in prepar
ing their animals for market.
\ number of other Industries are
awaiting the effects of the Presidents
thrift proclamation with deep anxiety.
They feel that Canada will not be in
clined to sit passive in the face of this
action and that some retaliatory meas
ures may be expected. The most likely
of these, it is believed, may deal with
paper and pulp woods. The demand for
newsprint bids fair to continue undim-
inished. especially in view Of the vol
ume of advertising now being placed
and in prospect in this country. The
price at which most large publishers
filled their requirements for the first
quarter was fairly advantageous in
view of the general level for sometime
back. but any disruption of production
of newsprint would be most unwelcome
TO them.
Canada already has on her statute
books regulations regarding the export
of pulp and pulp wood which have
been vigorously opposed by American
publishers. These have never been put
into strict operation. but held in abey-
ance pending further investigation and
discussion. However. no further legis-
lative action would be necessary TO
make them effective at once should the
dominica decide TO take such action i'll
retaliation for the advance in the
American tariff on wheat.