Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-20

Notwithstanding the action Of the
railroads in making temporary reduc-
ton Of freight rates on wheat at Presi-
dent Hoover's suggestion, the press re-
fleets a generally pessimistic view of
the outlook for satisfactory disposal of
the new American crop and the great
surplus carried oyer from last year
AS explained by the st. Louis Globe
Democrat. las soon as the railroads
decision was known in Liverpool and
reports were printed that Canadian
rates on grain, already lower than ours,
might be further decreased. that city
reduced its offers for wheat by just
about the amount Of the rate reduction,
and the st. Louis and Chicago QUOTA
ton went down in proportion to Liver
pools. However, other factors than the
freight rates are found. On farms and
In elevators and other storage 46l .0oo,-
900 bushels of wheat %re now held in
the United States, $1,000, 900 bushels
more than last year. and Canada holds
more than 160,000,o00, and the new
harvest is not far away. Argentina,
with its harvest just over, is offering
large quantities. Who knows but what
wheat would have gone much lower
without the freight decreases"
IF rival export countries counter
with similar shipping concessions" Sug-
geSts the Indianapolis News, the prac-
tical influence of the plan is far from
certain. Each of these producing re-
gionS, like our own. has larger carry
over of the grain than usual.
It is too soon to forecast what is going
TO happen in the Argentine acreage in
1929, but the American and Canadian
outlook is good. The surplus problem
consequently deserves all the attention
it is receiving. II untoward climatic
developments in Europe affect produc-
ton there and raise the import demand.
the pressure OF this issue will become
less. That was the case in 1924"
Sharp criticism Of the growers comes
from the Providence Bulletin. with the
advice: Despite plain warning to the
contrary. the wheat growers go right
ahead overproducing and putting I'M
plicit faith in the capacity OF Europe
to absorb their surplus. For IS years
with the exception OF the abnormal war
ycars-Europe has shown increasing in
dependence OF our wheat growers ef-
forts. In 1927, wheat production there
was within 10000, 900 bushels OF what
it was before the war. Last wear Ar
gentina. Australia and Canada raised
$50, 900 900 bushels. Russia. China, In
Ola are increasing their output. All
European countries are expanding their
fields TO meet their domestic demands
Yet. nothing dsunted. the American
grower continues to raise more than he
knows what to do with
Because prices were not high last
year" recalls the Grand Rapids Press.
farmers and middlemen preferred to
hold and warehouse the surplus, hoping
for better luck this year. But instead
the SURPRISES from other wheat-produc-
ing countries have been piling into the
foreign ports III record quantities. With
the freight handiCapS of American
Midwest farmers, 1t has seemed suicidal
to attempt moving wheat into this
glutted foreign market. The railroads.
approaching this despair, have at
tempted to reduce freight costs and en-
shipping. The continued drop
in price measures their success
Holders Of SURPRISES in Canada, Aus |
tralia, Argentina and the United States |
are in panic" the Spokane Spokes- !
man. Review declares. and are engaged !
in the ruinous game of undertaking !
each other in the European markets. !
It is not yet demonstrated that the |
wheat growers will receive much benefit |
from the temporary reductions in
freight rates to Lake, Gulf and Atlantic
ports. 1t is a certainty that our pro-
hucers In the Pacific Northwest who
1ovc not been Esen- corresponding re-.
auctions, have'.:ssp injured. For the