Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-08
j. s. WHEAT SALES
MAY HELP CANADA
Traders Believe Marketing of
5000, 900 Bushels. Abroad
Aids Winnipeg.
BY ]. C. RoYLE.

Determination of the Federal Farm
Board to market at least $1,000 ,00C
bushels of United States wheat abroad
in the next four months has given Can
ada a much-improved position in the
world wheat trade. That is the dpin-
ion of traders, financiers and agricul-
turists here, both Canadian and AIneri-
can.
The operations of the board on the
Chicago Board of Trade and other
American wheat markets have already
driven the majority of the trading in
both cash grain and grain futures to
Canadian markets. The American trad
ers hold that the manipulations of the
board have made it both dangerous and
impossible to continue active and extern
sive operations in domestic markets.
Some of the largest grain operators
are transferring their operations to
Winnipeg. The New York Produce Elk
change has opened trading in Canadian
grain futures, giving as a reason that 1t
cannot deal in American futures. Ele-
vator men and grain commission men
in this country assert that they have
been virtually put out of business. The
storage space of American farmers is
occupied and a new crop, with only the
slightest diminution in acreage planted,
Is coming on.
Samuel McKelvie wheat member of
the Federal Farm Board, and Chairman
Legge, both of whom have announced
they will shortly retire to private ME,
have repeatedly told American farmers
that they could not sell what in COM
petition with other countries and must
conflne production TO domestic needs
Now it is announced that 35,OOO,OOO
bushels of wheat will be sold in COM
petition with other countries at prices
prevailing In world markets.
Those prices are Is and ID cents
bushel lower than the levels at which
the Farm Board, through operations in
the market, has been able to maintain
wheat in this country. Whether or not
the American price at present is false
price is iinmaterial, according to au-
thoritieS. The fact remains that the
board is going to sell American wheat
to foreign consumers at less than II
costs American consumers. This may
be approved by the American farmers,
but it is held doubtful if 1t will please
the remaining rs per cent Of the Amer
lean people.
Canadian wheat, on the other hand,
has been meeting foreign competition.
1t is not at a false price. 1t stands to-
day on q sound basis OF quality, quail
ity only approached by American wheat.
vi lLc EIObEA1 COiAOCAlb ~ 40 GcAS W
carry a premium in any market. 1t is
more cheaply produced than American
wheat. It need not fear Russian COM
petition, for Russian wheat is in the
same position with regard to it as is the
soft wheat of the American Southwest.
A part of the American foreign sales
will 60 to the Orient. The prairie
provinces can grow and ship wheat to
such destinations at far less cost than
can the American producer. Moreover,
the British Empire carries in its ships
the wheat of the United States as well
as that of Canada. What is a sure
cost to American producer comes back
In q roundabout way to the investors OF
Britain and Canada.
Before the end of this crop year Ca
madam wheat will be finding its way
to Europe through the Fort Churchill
gateway transported at a cost which
may allow the Canadian grower
marked profit over his American COM
petitor The future of the Hudson's
Bay gateway is still in some doubt, ac-
cording to marine men here, but there
seems to be no doubt that 1t provides
at least means of taking immediate
advantage of any sudden shift In world
wheat prices during the larger part of
the year Canada has suffered in the
past from port congestion at Montreal
and 1t is likely that this now win be
obviated.
Copyright, 1879