Evening star., 1924-03-10

Wheat farmers of the northwest
do not appear SO happy over the
Presidents increase of the tariff on
wheat from 80 cents to AZ cents a
1busheL as some observers had been
led to expect.
II the increase of protection had
come last September, they say, it
would have Injured to the profit of
farmers. but locking the stable door
after the horse is stolen. is no better
example of the uselessnesS of effort
too late :han is protecting" the
farmers crop after the crop has been
sold, The active period of hauling
wheat from farm to elevator through
out - the blizzard-swept Dakotas,
Montana and Minnesota is betw cen
threshing in october or early Novem-
ber. Some is sold later, but COM
paratiyely little grain is left on the
farms as late as March. Farm set
tlement day at bank is around
November /, when crop notes must
be paid. therefore the farmer is
obliged to sell his grain at that time.
This increase of tariff protection in
March reaches only the dealers and
rillers, and the delay. while 100000
tered for United States consumption
aside from the 100000 bushels for
milling en- route to experiments
loss to the farmers, due directly to
delay in it's application. amounting to
IL cents a bushel-in round sum,
s9s0,o0o That Is approximately 81
per farm in the spring wheat section.
-
This is broad statement only OF
the principle. The spread" between
the American price and the Canadian
price has ranged from cents lower
to 80 cents higher in Minneapolis
than in Winnipeg.
The tariff has been so cents, yet
mills have used in -four for American
consumption. since last harvest, about
100000 bushels =, That 1ha ,mportsa noiia
market for our own wheat
** X X
There is a compensating rise of
tariff on -four, which protects the
millers from Canadian competition IN
the United States market, since the
new tariff makes the raw material
cost the American miller AZ cents
bushel more than It costs the
Canadian miller. All the grain or
flour that is directly affected in actual
business competition by this protec-
ton is that of the near northwest
the spring wheat region.
No amount of tariff protection
could affect winter wheat raised
surplus of such grain amounting to
some 10000. 900 to 200,000.000 bush
els. It is therefore on an export
basis, subject entirely to the world
price as found in the international
competitive market Of Liverpool.
but is used by northwestern millers
to blend with softer wheats in
making their flour While that -four
must meet the competition of other
fiours not containing the hard wheat
blend, there is not enough hard
wheat produced in America to fill the
present and perennial demand Of the
millers Hence northwestern mfllers
are glad to get Canadian wheat
even harder and better than Minne-
sofa and Dakota wheat. ana they
willingly pay whatever duty Is as
sessed, since they can pass 1t on TO
the ultimate American consumer,
through the protective duty on -four.
So long as there remained Dakota
and Minnesota wheat on the farms
much about added protection, but 1T
has not taken long to exhaust the
1874, ,00o, 900 bushels of our own spring
wheat, and now they look to the
470, 100000 bushels grown upon the
Saskatchewan and Alberta prairies.
X x X
Farm economists differ as to what
benefit will be derived from the in
creased tariff, so far as the 1928 crop
is concerned, since the crop is not
now in the growers hands. and also
since, despite ample protection" the
millers will have to continue to i'm
port Canadian wheat at the IL cents
added price and recoup that cost with
added price of -four. If the Accent
rate persists it will help the hard
wheat crop Of 1924, while the farmers
hold 1t, and should add the IL cents
to what they will receive.
The immediate result of the in
crease will be found in enhanced cost
Of -four and in it's new argument for
maintaining the price of bread.
although the tariff effect on bread
cost is SO infinitesimal that only an
expert accountant could discover 1t.