Evening star., 1933-08-22
PARADOX OF WHEAT
AGAIN PARLEY cRUX|
U. S. Promises Nations Not
to Dump Surplus
Abroad.
By the Associated Press

LONDON. August 22-The paradox
Of wheat-of surplus and famine, of
low prices and high-again confronts
the nations.
Soviet Russia claims a bumper crop,
but the price Of bread is doubled;
European countries have good harvests
but there Is famine among China's
millions: the Argentine Bureau Of Sta
tistics. predicts a. 1000, 900 bushel slump
in world production. but prices are low.
Twentynine nations are represented
in a conference seeking a solution to
the problem. but not few Of them are
taking measures to make their wheat
markets self sufficient.
Previous Parleys Fail.
The conference, conducted here after
two previous parleys failed to reach an
agreement on production and exporting,
today considered four-part proposal
which would bind importing nations to
increase their purchases. to preserve
the quality Of breadstuffs. to adjust
tariffs. and to declare in principle for
modification Of import restrictions.
The main exporting countriss-the
United States. Canada, Australia and
Argentina-agree in principle on the
necessity for q two-year program OF
cutting down acreages and exports and
for similar arrangement with
Danubian nations.
There is another side of the picture.
Italy wants q sound internal wheat
market. and plans to continue high
import duties and other emergency
measures to achieve that end.
Issues Involved.
These points are involved:
Sufficiently high duties to keep i'm
ported wheat from lowering prices,
ample credit arrangements SO farmers
can store their stocks for better condi-
tions; regulated marketing; the obliga-
ton of millers to use a very high per-
centage of native wheat.
France has guaranteed producers q
price Of Sl.65 a bushel at the farm, but
there Is a large crop. and the govern
ment, fulfilling its pledge, faces an un-
balanced budget.
A premium of about $1.l5 bushel Is
given exporters. because of the low
world price and to relieve the home
market of large surplus-l4 900 900
bushels from last year. which may be
increased by the current crop.
French wheat has been sold at so
cents a bushel in Holland and Switzer-
land. with the government paying the
difference.
This dumping has ben vigorously
opposed. The word dumping is
eschewed by American Secretary of
Agriculture wallace, who announced
plan of subsidized exports" of Pacific
Northwest wheat to the Orient, if the
conferees in London failed to agree on a
plan. This would not. he said. be
dumping.
U. S. Would Meet Losses.
Under one suggested arrangement
surplus stocks would be sent to Oriental
markets WITH the United States Gov
eminent meeting exporters losses by
funds obtained from processing taxes.
An increase in the wheat acreage in
Great Britain from 343 l60 acres in
1882 to 1.743950 acres this year, and
an expected increase in yield have Gre
ated problem in England. too.
Consequently. the British ministry Of
agriculture has altered the amount Of
the quota payment millers and import
ers of flour must make to the wheat
commission. and estimates the price
obtainable by registered growers in
l933l934 at about Sl36 at par
hundredweight. with the price deficit
set at about $l04
In Russia 100000 young children
have been sent to the fields to make
sure that no wheat will be wasted or
boarded
Germany has set about protecting her
agricultural markets; Holland has
trebled the percentage of home grown
wheat her millers must use: Spain is
considering legislation to like end;
Scandinavian countries are prepared to
act together in the interests Of their
farm markets: many countries have
perfected. or are considering. recipro-
cal northumberland pacts.
American Delegates Optimistic.
But Frederick E. Murphy. an Ameri-
can delegate to the London Conference.
is optimistic that way out can be
found
Europe is getting sick of it's nation
alistic policies" he says.
The delegates conducted informal
conversations today while representa-
tives of wheat-impOrting nations await
ed word from their governments regard
ing a suggested importers agreement.
This proposal was drawn up by the
leading producers as an outline OF what
is expected of importers if exporters are
to act to control production and regu-
late shipments in an effort to raise
prices of the cereal.
Spokesman for exporting nations have
reached a measure of agreement among
themselves. but seek as a condition the
cooperation of the others.
1t was expected that when the con-
ference resumes tomorrow afternoon,
after a one-day adjournment, indica-
tions of how far importers are prepared
to go will be available.
Many delegates were cheered today
by the assertion Of Mr.. Murphy that the
United States would not dump its sur
plus on foreign markets if no agree
ment was forthcoming. He maintained
that his country would try to maintain
orderly prices.
The suggested pact would call for
lower duties on wheat as prices rise,
removal of import barriers. and aban-
donment of percentage requirements in
milling. Encouragement of consump-
ton also would be sought.
npnED