10 April, 1919.] Ne.vt Season's Wheat Crop. 249 



According to later news, tlie Imperial Government is doubtful if the 

 whole of its purchase will be lifted hy the end of 1919. The position 

 then will be, assuming that no sale is made to the Inaperial Govern- 

 ment, that by the end of the year we may expect to have 2,500,000 tons 

 of f.a.q. wheat and considerable holdings of inferior wheat, with a new 

 crop of, perhaps, 2,500,000 tons coming in. In these circumstances the 

 resumption of normal trading would be impossible. Merchants could 

 not make purchases on advances against the new harvest on a scale 

 satisfactory to growers. 



" As custodians of large quantities of wheat purchased by the Im- 

 perial Government, and having regard to our responsibilities to tax- 

 payers and wheat growers, we should see that there is a systematic 

 realization of our stocks. To reduce deterioration to a minimum, we 

 should see that the oldest wheat is shipped first. We should not onlv 

 eliminate competition to sell our wheat, ibut we should also avoid that 

 competition for tonnage which would be so disa-strous and result in 

 such increased freight charges if indulged in by the Imperial Govern- 

 ment, the Australian Wheat Board, and the merchants. 



" This competition cannot be eliminated, and this systematic reali- 

 zation cannot be effected, unless the pooling scheme is continued for- 

 another year. 



Question of Guarantees. 



" The Federal Farmers' Organization has also asked for a 

 guaranteed return from the 1919-20 harvest, and in this request has 

 the support of the Victorian Chamber of Agriculture and of the Royal 

 Agricultural Society of Victoria. In view of the present financial out- 

 look, this question of guarantee is of vital concern to the taxpayer, 

 \v*hose interests are ajpt to be ignored. Demands are made that we 

 should emulate the example of America, and give such a guarantee 

 as will practically compel heavy contributions from i-evenue. It should 

 not be overlooked that the purpose of the Am*erican guarantee was to 

 insure an ample supply of foodstuff's to the AUieb. TnTow that the 

 shipping position lias eased, America must face her losses, and it is not 

 at all unlikely that her g-uarantee will result in a deficiency of hundreds 

 of millions of pounds. The policy of the American Government will 

 exert a powerful influence on overseas markets. If weather conditions 

 prove favorahle, she may have a yield of 1,200,000,000 bushels. If 

 acute competition arises with other producing countries we may see a 

 period of low ijjrices. This may not be an unmixed evil for the Aus- 

 tralian wheat grower, as it would mean a diminished area under crop 

 the following year in America. But it would be a serious matter for the 

 Australian taxpayer, whose credit had heen pledged to afford encourage- 

 ment to the wheat grower. 



" The Government, however, is prepared, 'proviided the States are 

 willing to co-operate, to offer a guarantee for the coming year of 4s. 4d. 

 per bushel, less freight from point of delivery to the port of export. To 

 some growers, this guarantee may be disaippointing, but to the enlight- 

 ened majority it will (]3rove acceptable. The Wheat Board's indebted- 

 ness is now over £20,000,000, and though the overdraft appears to 

 have reached its apex its rapid diminution cannot be expected. If our 

 Avheat is unsold for twelve months, our interest hill will amount to 



