Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-15
CHANGE IN WHEAT
|. SHIPMENTS URGED
British Seek Direct Contact
With u. S. Producers
of Grain.
BY FRANK /. WELLER,

For some observers there is deep sig
nificance in the presence in this coun-
try of representatives of the Cooper
alive Wholesale Society, Ltd, of Great
Britain.
Robert Fleming and Joseph Brad
shaw. directors of the concern, visited
the White House and chatted with the
President about tariffs and counter
vailing duties and Anglo American &C
cord-but they went on to Chicago to
buy wheat. The third man of their
party was A. H. Hobley, one Of the
smartest grain buyers in the British
empire.
The first intimation of their real
mission in America developed during
their conference with members of the
Farm Board After a brief exchange
of pleaSantrieS the Britishers came
directly to the point and proposed q
contract between their organization and
the Farm Board for the direct shipment
of wheat from the American producer
to the English consumer.
Extent of Organization.
Chairman Legge explained that such
matter was primarily the concern OF
the Farmers National Grain Corpora
ton and suggested that the visitors get
in touch with George Miner Of Chi
cago, general manager of both the
Farmers National and the Grain Sta
bilization Corporation.
The incident comprises all the infor-
nation Washington obtained on the
proposal except for that contained in
a pamphlet disclosing that the organi-
zation is made up of 10000 retail So
cieties operating 5000 stores. does an
annual business of $450,000,000 and
manufactures 260 bags of flour, weigh
ing 280 pounds each, every hour Of
every day.
If American wheat, which slipped to
new low levels for the season last week
due to heavy offerings of Canadian
grain and forecasts of larger Spring
wheat yields in this country, were to be
used in the manufacture of all that
flour. the Grain Sterilization Corpora
ton would have less worry over its
10000, 900 bushels of old crop wheat
and the Farmers National less worry
over competition in the world market
1t is not known, however, that the
British visitors propose to use American
wheat exclusively or that Mr.. Miner
would sell them sterilization" wheat
The Farm Board said that wheat held
from the 1929 crop would not be put
on the market in competition with the
1890 crop until prices reached the point
at which it was bought. 1t might be
a question Of opinion whether wheat
shipped direct to the consumer con-
stituted competition"
Reason for Contract.
OF far greater interest to some is the
reason for proposing such contract.
The British traders buy on price
rather than a quality basis. 1t is not
believed they have any particular pref
erence for American wheat They do
desire, however, that American wheat
compete heavily on the world market
because the competition brings prices
down. The question observers are ask
ing themselves is whether the British
fear the corn shortage in this country
IS going to absorb so much American
wheat that little will be left for the
world market and believe it would be
the smart thing to sew up enough to
meet their demands at current low
prices.
Such a theory is underlaid with the
possibility that buyers on the other side
Of the Atlantic may foresee a rise in
wheat prices. If wheat Is substituted
for corn in live stock feed, the 0000,-
000-bushel corn deficiency might easily
absorb the increase of $4,000, 900 bushels
in the American wheat yield. Unusually
neaVy ana early marketing OF CANADIAN
wheat is putting about 5000 900 bushels
a day in interior elevators and wheat
is pouring out of North America at the
rate of 10000. 900 bushels a week.
Black Sea shipments, including Rus
sian cargoes, are averaging 100000
bushels a week, while Southern Henri
sphere shipments indicate the wheat
supply is almost exhausted. Most of
the European consuming countries
which harvested large yields of their
own last year had much smaller crops
this year and neither Argentina nor
Australia will be able to offer much
wheat until the new crop starts to move
in January.
Changes in Week.
Until then, if American farmers feed
wheat there is only the relatively small
Canadian crop left to feed the world
Whether they do or not depends largely
on whether feed grains remain rela-
lively high compared to wheat Corn
slipped back to 3 cents a bushel this
week, oats l to 2 cents, rye declined
less sharply and barley was independ-
emily firm.
.