Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-03
new GRAIN MARKET
WILL OPEN TODAY
Only Canadian Product to Be
Traded In on Produce
Exchange.
BY BRADLEY w. TRENT.

Special Dispatch to The Star.
NEW YORK, March 3.--Establish-
ment of trading in bonded grain flu
lures on the New York Produce Ex-
change today is a significant event in
the business world. The Importance OF
this lies not in the fact that New York
will have a wheat market-there has
been trading in wheat here before
but because the trading will be entirely
in Canadian wheat.
BY bonded grain futures" is meant
Canadian grain, subject to all the rigid
inspection standards pertaining to
Canada's farm products which are eX-
ported The grain will be brought to
the United States under bond for ship
ment to some other country and, OF
course, will not be subject to customs
duty or other taxes.
Move Considered Radical.
This is one of the most radical moves
in wheat trading in years and 1t tol-
lows as natural sequel to the rising
Importance of the winnipeg market as
q consequence of the Federal Farm
Boards operations in the hitherto free
market at Chicago.
The Produce Exchange, in its official
announcement of the new market,
makes the statement. 1.-THE activities
of the Farm Board have wrought havoc
with the grain trade OF this country:
BY maintaining an artificial price level
for wheat and accommodating an enor-
NOUS supply the Farm Board has rem
dered it impossible for the United
states futures market to function prop
erly. Prices for Canadian wheats are,
on the other hand, under no such artl-
fetal influences and may therefore be
expected In their price level to reflect
accurately conditions as they exist in
the world markets"
Just what amount of grain may be
traded In New York is uncertain, but
officials of the Produce exchange are
making elaborate plans to handle
large volume. Canadas exportable sur
plus will be brought by train and boat
to Buffalo, through which point this
huge volume of wheat Is now routed.
The trading will be done here, but the
deliveries will all be made at Buffalo.
Warehouse facilities there will accom-
modate 100000 bushels. From Buff
falo water and rail routes spread to
every important point on the Atlantic
seaboard. both in Canada and the
United States. There are five trunk
lines to New York, three to Baltimore,
two to Philadelphia and one each to
Norfolk, Va; Portland, Me-; st. John,
New Brunswick; Montreal and Halifax.
The grain will move from its points OF
origin to the elevators at the head OF
the Great Lakes, Duluth, Port Arthur
and Fort william, and thence to Buff
falo by water.
Criticism of Board.
Recently grain men have given vent
20 considerable criticism of the Farm
Boards supervision of grain trading at
Chicago. The Farm Boards operations
In the Chicago market have caused some
houses which had branches at Winni-
neg to transfer the bulk of their actiyi-
ties to the Canadian market In some
cases famous pit traders, like Arthur w.
Cutten, have purchased seats on the
winnipeg Exchange and have actually
moved their market operations to the
Manitoba city.
Winnipeg, according to produce ex-
change officials, is now the only free
market for grain in North America.
Another reason for the switching is
that the United States, which has in
the past exported about 20 per cent Of
her crop, viii probably adopt restrictive
measures which viii eliminate any ne
cessity to export wheat in competition
with the rapidly increasing production
of Soviet Russia, Australia and the
South American wheat-growing coun-
tries On the other hand, Canada, with
a population of only 10000, 900, produces
about 500 ,000, 900 bushels of wheat an
nually-or about the equal of the entire
American crop produced east of the
Rockies-and is likely in the near future
to produce as much as 700,000,000
bushels.
A free market" in Canada is con-
gidered guaranteed by the declaration of
Premier Bennett that the Canadian
government will not appropriate any
funds for the purpose of supporting
wheat prices.
What effect the new market here will
have on Chicago and Winnipeg remains
to be seen. For some time the Cana
dian wheat pool has removed much
wheat from the market through its sys-
tenn Of maintaining selling agents
abroad But recently the pool an
nounced its decision to withdraw all its
foreign agents and dispose of its wheat
In the open market If 1t does so,
produce exchange officials think the
pool will find 1t Of advantage to trade
In New York, in order to eliminate
piecemeal shipments west of Buffalo.
This will mean more business for Amer
lean vessels.
(Copyright, 1e3l)