Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-11
WHEAT CROP HOLDS
KEY TO FUTURE OF
CANADIAN BUSINESS
Financial interests of Do
minion Are Watching
Progress of Grain.
MORE ACREAGE PLANTED
THIS YEAR THAN IN 1929
Fear of Large Yield Is General, as
Price Situation
Fluctuates.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
MONTREAL, Canada, May 1o.-Will
the price of wheat 60 up or down?
All business in Canada centers around
wheat. It cannot be ignored. Business
men, seeing a new crop in the making,
are frankly worried over the huge crop
still in the terminal elevators and on
the farms. It could have been sold
last Fall for $3.50 bushel. But it was
held, while it moved down until today
80 to IS cents at the farm Is going
price.
While the 1929 crop amounted to
just a little more than half Of the
1928 crop, the carryover, If prices do
not change for the better, will be more
than 200,000,000 bushels out Of total
1929 crop of 299, 000,0 bushels.
Now comes the report that Canada
is planting more wheat acreage this
year than last in spite of the low prices
and the dangerous accumulation OF the
1929 Group.
Does it mean still lower prices for
wheat? Every business man in Canada
wonders. It depends. too, on the yield.
Last years was only 11.9 bushels per
acre as against 221 in 1928.
Should Canada produce as good a
yield per acre in 1880 as it did in
wheat on the roadside" said one busi-
ness man, discussing the wheat problem
with this writer. But perhaps the
yield will be poor and other parts of
the world will likewise produce a poor
yield. II all the worlds wheat-produc-
ing countries, except Canada, go bad,
the coming crop in Canada will work
out. If not, Canada must be prepared
to take low prices for her wheat and
clean up her surplus"
More Consumption Needed.
"The greatest contribution the peo-
pie of the United States could make at
this particular time would be to eat
all the wheat they produce" said e. w.
Beatty, president Of the Canadian Pa
cific Railroad, in discussing the Cana
dian problem with me. Already the
American people consume about three
fourthS of all the wheat produced in.
the United States--60O, 000, 900 out of
800. 000, 900 bushels. If you could only
change from wheat substitutes and
600, 900 bushels out of the world market
you would do wonderful job for the
Canadians. For wheat export is our
main business-our greatest industry"
How great?" asked him. Large
enough to increase the wealth of
Canada from 100000, 900 to $500, 000,-
600 annually" was the reply.
C. p. r.. Report.
Mr.. Beatty's report of the c. p. r.
for the last calendar year, which has
just been issued, shows some interesting
figures.
While the gross earnings Of this cor
poration amounted to 5000, 730 900, the
net earnings reached $43,144,0 900.
But the C. p. r. has large interests
outside Of It's railroad activities proper
hotels, steamships, stock holdings in
other companies and so forth. These
special earnings amounted to $l5,232,-
900. So the total income Of the COM
pany for the lear 1929 was $58,376, 900.
Who owns the G. p. r.? 1t is the
most prosperous corporation in the
British Empire. II common and pre-
ferred shares are included, the United
Kingdom owns 1888 per cent, the
United states $3.50 per cent. Canada,
1898 per cent, and all other countries,
4.89 per cent.
AS 81 per cent of the investments Of
the c. p. r. are in Canada, asked Mr..
Beatty his opinion Of present condi-
lions in Canada.
while we have been slowed up some
what by the wheat situation, business
Is sound and we expect record sum-
mer and Fall No business man who
understands the vast potential wealth
within Canada, but realizes that we
have just started on their development.
Tariff Question.
After several days spent interviewing
some of the leading business men III
Eastern Canada, one cannot heip put
realize that the present tariff agitation
in the United States, increasing the
tariff duties on a great many articles
which Canada sells to the United
States, has stirred up more agitation
In the Dominion for higher protective
duties against American goods than
ever before.
IT am one of those Canadians who
believes that we should work out our
economic life independent of any other
nation" said Sir Herbert Holt, presi-
dent of the Royal Bank Of Canada.
I'VE are a self-contained economic
unit. We can produce everything we
need and still have plenty lett over 70
sell to the rest of the world" he con-
tinued why, then, should we WORK
out our fiscal and financial policies
based on what the United States or any
other country does? Higher CarM
duties imposed by the United States VIII
undoubtedly force Canadian puslre %
interests to turn more and more 70
England and other countries VINO VIII
buy our goods. We cannot buy IRON
people who will not buy from us: Lne
account must be Strengthened OUT lIo,li
time to time and when 1t is, Canaua
must have something to pay with.
will the higher tariff duties SUI
gested in the pending American Iarn I'll
law mean less trade between THESE WV
countries?" asked him.
To-day Canada and the United Sta.eS
are doing more business togetner tnan
any two other nations IN the WORTH 9TH
Whether the higher tarin duties VIII
change this situation, no one can Gay
definitely, but that the higher scneouieS
will tend to restrict trade between US
goes without saying. But l naVe 81
ways felt that Canada Is not At tn ne
place where the United STATES Was oo
years ago, so far as this tarln ma1eer
Tariff walls have built the United
States into a very rich ana poWeL,ui
Nation. It will do the same IoI Can I.
ada If 1t Is not made q pontacai ioos
ball. That is our danger mere.
Personally, I would IKE 10 see s.,e
world give all the politicians . tnLse.
year holiday. II that could De COTE
we would ali be surprised az wnas Wo ,.,lu
happen. The world would pIossom nke
a rose. But I suppose tnas situa'ion'
unfortunately, will never exist.
while Canada Is supposed 70 nave
only II chartered banks TINS - not
'' There oU are in the service Of Quebec