Evening star., 1940-12-10
-Four Wheat Nations
Subsidize Pricesa as
Surp|uses Soar
Emergency Is Created
By Wars Effect on
World Trade
BY FRANKLIN MULLIN,
Associated Press Market Writer.

CHICAGO, Dec. 10.-Gove;nment
resources of the worlds four prin.
cipal wheat exporting Countries
the United States, Canada, Argen.
tina and Australa-have BEEN
pressed into service to stabilize pro- !
ducers' prices in the emergency cree
ated by wars Gripping effect on in
ternational trade.
The total supply of wheat in the
granaries of these nations for the
season beginning last July / was
estimated by grain men here at o.
299 900, 900 bushels, of which, they
said, only about 965 100000 bushels
would be needed for normal home
consumption.
What would be done with the
remaining 1.324000, 900 bushels, con-
sidering that total world shipments
for the season we're expected to
amount to only 250,000,0OO bushels.
was the crux of the dilemma facing
four governments. Here are the
major steps each has taken to meet
the problem.
U. S. Prices Supported.
The United States-No change in
acreage allotment for 1941 has been
made. The Federal Government IS
supporting prices through a high :
duty on imports, a subsidy on ex-
ports to certain countries and loans
to eligible producers based at about
81 cents a bushel, Chicago. More
than 263000,000 bushels have been
sealed under loans, thus removing
from circulation about a fourth of
the 1076,000000 bushel supply for
the season.
Canada-The government IS TAX
ing delivery at fixed prices ranging
up to 10 cents. Minimum prices
are in effect, the Winnipeg Decem-
Der futures minimum being 71'.t
A quota has been placed on Wheat
Board acceptances from farmers.
due to shortage of storage space
Limitation of the 1871 crop was eY-
peCted to be sought inasmuch sS
the supply CT 843, 100000 bushels fC~
Nllt Otdcpll NdN LIldll OOU lb
cent of home requirements.
Argentina-A minimum price of
54i2 cents has been fixed. Inas-
much as Argentina had a poor Gro
last season, the carryover, despi
a drop in exports, is very sm9i'.
However, harvest of 100000
bushels is now under way. Acrea
control was provided for in the G.
Board program under which t
government is buying wheat.
Guarantee Offered.
Australia-Farmers will be e.
anteed price Of about 56i2 ce
with free transportation to DC
and will share in any price incre~
Acreage will be controlled next Sc
son Australia's problem was ligf-
ened by the fact that the currer
crop was expected to be smalle"
than 100000 bushels. but this
might give the country an export
able surplus of about 100000
bushels Many farmers have been
on government relief.
Government Intervention in the
grain trade is not new but 1t never
has been as extensive as at present.
The trend toward government con-
troll has been under way for a num-
Der of years. 1t started when agri-
culture became a state function in
Russia. It was speeded by trade
wars in which nations sought to
crowd each ether out of the world
market. Governmental control in
creased when. one by one. competi-
tors for world trade took steps -
protect producers from price CO..
lapses of the depression. And. nov
new war has forced gOvernmeI
domination for conservation of food
in countries where there is scarcity
and for aid to producers where sup,
plies are burdening.