Evening star., 1930-12-01
u. S. DOLLAR WHEAT
/. PRICE HELD LIKELY
Government Aided by Tariff
In Effort to Support
Market.
BY FRANK I. WELLER,

to dollar wheat" as suggested by fey
who still are too timorous about it I'd
talk out loud, the fight to preserve Ameri-N
can markets for American products may
have just begun.
Several Of the great storehouses Of
the world are about ready to turn loose
another deluge Of wheat, a circumstance
calculated further to depress a world
price which already is several cents
under the domestic. Piled high on the
Northern border is a huge Canadian
surplus, eager and straining for sale
whenever and wherever there is an ad-
vantage. Ruled entirely by world fluc-
tuation, Canadian wheat only recently
recovered from depression that carried
1t almost to so cents a buShel. Caught
again in market hammered by world
supplies, Canada might md it conven-
lent to pay the accent tariff and use
her neighbor's doorway as an outlet for
her yellow flood.
Tariff Is Factor.
The question is simply whether the
United States can put wheat up to 81
a bushel and If so, whether world prices
drop sufficiently low to pun Canadian
wheat down where 1t can pay the tariff
and make profit in American markets.
The Grain Sterilization Corporation
is said to control about 1I0, 900, 900 bush
els of the 1913, ,000, 900 bushels in the vis-
ible supply. If that taken out OF the mar
ket is not enough to boost prices, the
Farmers National Grain Corporation Is
said to hold about 100000 bushels.
In addition. Chairman Legge of the
Farm Board says farmers probably will
feed 200,000,000 bushels Of wheat to
live stock because of the drought short
age in coarse grains.
Since the new sterilization operation
was started domestic wheat prices-now
the highest of any in surplus-producing
counties-have either advanced or held
firm during every marketing period.
To show the possibility of both dollar
wheat in the United States and a de-
moralized market abroad is not entirely
fantasy, it is understood that at re-
cent conference between members OF
Congress and farm leaders, both In and
out of Government service, the sugges-
ton was made that the present wheat
tariff of AZ cents be increased to SO
cents by executive order, SO that If the
domestic price were pushed to 81
cheaper foreign wheat could not enter
this country.
Canadian Wheat Is Best.
It is remembered with certain uneasi-
ness that Canadian wheat Is the finest
grain in the world and usually is bet
ter, grade for grade, than the American
product.
The world price has weakened under
generally favorable reports from Argen-
tina and Australia, where harvesting
now Is well under way, and the pressure
OF accumulated stocks in European
ports.
1t is estimated that around 15,00O,000
bushels of Russian wheat is stored in
European ports, unSold. Black Sea
shipments this week, however, were only
about 100000 bushels, as compared
with nearly 7,000,0 last week, and re-
ports persist that boats have left Rus
sian ports because they could not obtain
cargoes. Friends Of the market believe
If Russia really is about through ship
ping, foreign markets should strengthen.
1t was said on the New York Produce
Exchange, however, that reports Of Rus
sian depletion referred to barley rather
than wheat.
The future trend of world prices win
depend largely on Argentine crop news
and threshing returns. Damage from
rust is believed to have been exagger-
ated and Broomhall's estimate of an
Argentine exportable surplus of 205, ,000,-
600 bushels threw the trade into an up
roar. Buenos Aires correspondents in
sist the figure is more nearly 187,000,000
bushels, or even as low as 165, 200, 900
bushels. The United States estimate of
Vic 1AASCAAtAAAC CAPOAOo 41u6CAo dIOuuQ
200, 900 bushels, remembering that
year ago Argentina kept on shipping
wheat long after her own export figure
had been passed.
Freight Rates Advance.
Chartering in the Argentine is mod
erately active and ocean freight rates
have advanced.
Chicago professionals in corn are
working on the buying side now in a
small way and although the market
averaged somewhat better it was, on the
whole, disappointing to the bulls. Husk-
ing is almost completed in Iowa, the
earliest in years, and outside buying in
the yellow cereal is broadening, while a
great deal of the speculative interest Is
being diverted from wheat to corn.
Sentiment is becoming increasingly
friendly to the constructive side of
coarse grains. Oats have been selling
18 cents under a year ago and many
believe neither oats nor corn require
any eloquence to establish their claim
to higher prices-merely relief from
contagious weakness in wheat.