102 THE ROYAL SOCIETY OF CANADA 
39-5 cents in the fall of 1915?! The superior quality of the Cana- 
dian wheat is one explanation and the high ocean rates is another. 
In times of peace the difference in ocean rates from Canada, the United 
States, Argentina, and Australia to Liverpool is only a small fraction 
of the value of the wheat; but when war is on shipping is reduced and 
trade routes must be guarded. As a consequence the movements of 
wheat are seriously interfered with. The Russian surplus, which can 
come out only by the Dardanelles, was shut off. When Britain, France, 
Holland, and other European countries required wheat they were com- 
pelled to seek it from the nearest country that had wheat to ship 
over a safe route. Canadian wheat went forward as rapidly as far- 
mers could load it and trains and ships could carry it, and the extra 
cost of transportation was passed on to the European purchaser. 
Canadians, who in their limited view of the situation, were loudly com- 
plaining of the high ocean rates and demanding that the Government 
_ should do the impossible, did not realize that it was because of these 
high rates that Canadian wheat was selling as a preference. The 
British consumer, if any one, had cause to complain, for he has been 
paying the extra transportation rate in the increased price of bread. 
Before the war the Londoner paid less per pound for bread than did 
most Canadians; during the war he is paying more. In August, 
September, and October, 1914, bread sold in Toronto at 33 to 4 cents 
a pound; in the corresponding months of 1915 the prices were the 
same or a shade lower; bread in London, England, in August, Septem- 
ber and October, 1914, sold from 22 to 34 cents a pound, and in the 
corresponding months of 1915 from 3% to 4 cents a pound.? 
Australia at the present time has a large wheat crop but ocean 
rates are excessive, insurance rates are high, and steam shipping is 
well-nigh unprocurable. As a consequence the Federal Government 
has taken possession of the crop and had advanced 75 cents a bushel 
to the farmers. When and how it will be forwarded to Europe is 
somewhat uncertain at the present time. Further rise in rates has 
been restricted by this federal action, but shortage of tonnage is 
seriously interfering with its transportation to Europe, and Australian 

1 Very complete tables of ocean freight rates for wheat covering a long period 
of years will be found in Census and Statistics Monthly, Ottawa, February, 1916. 
The same question is discussed in Mr. Doherty’s paper referred to before. 
2 Information as to cost of bread and flour in Canada and in Great Britain will be 
found in the Report on Cost of Living, Ottawa, 1915, Vol. 1, pp. 34, 35, 36, 747 to 
759, inclusive. It will surprise Canadians to know that in some of our cities it costs 
from 1} to 2 cents to deliver a three-pound loaf. In England cost of distribution is 
much less. This should be considered in comparing prices of bread. High cost of 
distribution plays an important part in cost of living in Canada. See note in Appen- 
dix on ‘Flour and Bread.” 
