Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-24
FARM FEDERATION
TO PROBE SOVIET
Activities Detrimental to u. S.
Producers 0rdered-Grain
Registers Early Rise.
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values in particular. Some pit experts
went so far as to suggest that, despite
gloomy outlook produced by Russias
extraordinary selling campaign. radical
reversal of market action would not be
surprising.
Wheat, corn and every other grain yes
terday smashed down to record low prices
that in many cases have been hereto
fore unequaled for "a years. Forged
messages, purporting to show that the
Canadian growers pool was insolvent
and that its affairs would be taken over
by Canadian government officials, were
largely responsible. In spite of quick
authoritative. denials that there was any
truth in such reports, trade conditions
remained demoralized, with Russia I'M
derselling North American wheat in Eu-
rope and announced as having negoti-
ated vessel charters to carry additional
out-shipments of 55,Q00,000 bushels OF
Russian grain, mostly wheat
There was no dispute, but that wheat
tc lay was selling greatly below the cost
of domestic production, but the fact
that for the first time ever known the
Unied States visible supply total had
piled up to more than 200,000,0 900
bushels did much to deter buyers from
entering the market. Purchases for
previous sellers who were in a position
to collect a profit steadied values at
times, but the support was too thin
be of lasting nature as a rule. Acting
as a further bearish influence was word
that the worlds stock of wheat Is sight
showed 27,322,000 bushels increase for
the last week, and now amounted to
413,343 900 bushels against 393, 493, 900
bushels a year ago.
Involves British Politics.
Political observers in London believe
that wheat will play possibly a dominant
part in the coming imperial conference
discussions.
The dumping of Russian wheat has
raised an outcry not only in rural
England but across the Agrarian states
of Europe, and has given the movement
for wider empire preferences impetus
such as no mere academic. discussions
could possibly have done.
Nevertheless there are strong doubts
as TO whether the present Labor gov
eminent would be prepared to impose
a duty on foreign wheat since the free
traders and the free fooders," such as
Philip Snowden, chancellor of the
e.;chequer, and William Graham,
president of the Board of Trade, are
much at the economic helm at Downing
Street.
j. H. Thomas, secretary OF state for
the dominions, has a counter scheme
which would accord preferences by way
of bulk state purchases. Although Mr..
Thomas has not yet divulged the details
Of his plan 1t is meeting strenuous criti-
cism on the ground that it will increase
the price of food.
The. Daily Herald, Labor organ, today
described the cutlery against the dump
ing OF Russian wheat as a political
stunt.
Add New Trade Troubles.
The American grain transactions of
the Russian government have added Just
one more item to considerable list of
Soviet commercial activities which have
disturbed Treasury officials for the past
year.
Nearly IL months ago the attention Of
the Treasury was directed toward plans
of the SovietS to import several products
into the United States. 1t Immediately
set close watch on the shipment. but
found itself baffled by inadeQuacy of
existing American laws 20 deal with the
situation in general. Lack of diplomatic
relations made virtually impossible the
task Of ascertaiiling the cost of produc-
ton or the various articles in Russia.
Under present law the tariff on any
aEIlcAe imported could be raised IL ii
were found Russia was selling it here
below its cost of production or below
the selling price in Russia. This was
established only on one article, safety
matches, and the anti-dumping act was
applied, raising the tariff to bring their
American price into competition with
the domestic product.
Lumber Embargo Rescinded.
Proof of the selling price of matches
in Russia was comparatively easy to
secure, because match production there
Is a government monopoly and the SELL
ing price high. In other articles, how
ever, neither sale prices nor costs of
production could be determined.
Complaints from American firms
were received that Russia was dumping
coal, lumber, pulpwood and manganese
into the United States. The Treasury
ordered lumber and pulpwood barred,
on the ground 1t was produced with the
use OF convict labor-a tariff law
clause permits exclusion of anything
into the production of which convict or
forced labor has entered-but at hear
ings held on both products the evidence
was held insufficient, and the embargoeS
were rescinded
While the pulpwood did not compete
with American production it replaced
supplies obtained from Canada and was
considered indirectly detrimental to