Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-28
BRITAIN PROTESTS
RUSSIAN WHEAT
Grain Dumping Aids Shipping,
but Causes Decline in
Prices.

~ Radio TO The star.
LONDON. September IA con-
adorable section of the British press
has been devoting a large part of its
space in the past week to a furious
campaign against alleged dumping of
Russian wheat Sensational figures have
been given of the amount of wheat and
other grains which the Soviets are pre-
pairing to unload on the worlds markets,
and lurid pictures are painted of the
sinister boishevik plot aiming at the
complete Generalization of the COM
modify markets as a prelude to uni
versal revolution.
Wheat Prices Lowered.
1t would rather appear that the press
IN its zeal to expose this villainy has
hardly acted in the best interests of the
victims of the supposed plot against
British and Dominion farmers. The re-
entry Of Russia into the wheat export
markets has certainly been a contribut-
ing factor in the present decline of
wheat prices, but it would probably have
been q. less powerful one if it had not
received such extensive publicity.
Estimates of the quantity of grain
which may be, expected from Russia
this season vary considerably, but at
most it IS likely to amount to only a
requirements. The headlines have sug-
gested, however, the dumping of vast
quantities here and have thus ac-
centuated bearish sentiment.
The advocates of the bolshevik plot
theory have endeavored to render it
plausible by asking why Russia should
export wheat at all while the popula-
ton is short of food unless for the pur-
pose of starting trouble in other
countries. According to Soviet spokes-
men in London, the scarcity in Russia
grains, of which there has been an
unusually big harvest. owing to the
favorable weather, the increased yield
produced by large scale methods and
the introduction of modern machinery.
Money Is Needed.
Neutral observers here who have
studied the Russian situation confirm
this view and point out that the motive
OF the Soviet government in pursuing
an export policy in the face of existing
low prices is very ordinary one
simply the need for money. Russia at
present as nation appears to be prac-
ticing the policy which bankers and
public1StS in other countries are. con-
stantly urging on individuals. It : is
denying itself in the present in hopes
to use the phrase Of economists-of
reapirg the reward of abstinence" in
the future. 1.-The five-year plan" which
it has adopted envisages a rapid in
crease IN its industrial and agricultural
equipment. Much of the necessary ma
chinery has to be obtained abroad. and
In the absence OF credits paid for in
cash
The export of wheat, wood. oil and
other commodities commanding a ready
market is the only way open by which
the necessary foreign exchange can be
secured. From the Soviet point of view,
the present world surplus of wheat is
decidedly unfortunate, since it is OBJ
tanning for its crop a much smaller
sum than it had hoped for. To what
extent, If any, however. it is compelled
TO dispose OF the crop below price is not
known. for there are no reliable Stats
tics available. The Soyiets claim that
on the state and collective farms,
where mass production methods have
been introduced, costs have been much
cut down, but here again independent
evidence is lacking. Perhaps American
experts who are employed on some of
these farms viii be able to throw more
light on the question.
Shipping Is Aided.
Meanwhile farmers the world over
are certainly suffering from the decline
All "a ACSS anu nave SOOO reason 10 curse
the Russian competition along with
other causes. The i'll wind, however,
must seem less harsh to some other
people concerned, especially in this
country. The Russian exports of wheat
and wood have meant the EMPLOYMENT
of much shipping, mainly British. A
large number of vessels which had been
laid up idle in British ports have been
put into commission, and chartering
nh hor H91 IL to- g.
many months, have taken an upward
turn. Low prices. however bad for the
producers. do not always prove so I'M
acceptable to the consumers. and with
the present slump in wheat has come
a reduction in the price of bread here
to the lowest since the war Similarly,
large supplies of Russian timber avail
able at low prices have helped to re-
dute building costa very welcome de-
velopment in view of the vast number of
houses still required in this country.
(Copyright, l930.)