RELATED TOPICS 281 



the result of much inquiry, it will receive general 

 support. In fixing the price at what seems so high a 

 figure the Board of Trade had to consider the amount 

 sufficient not only to cover the cost of production, 

 but also to encourage growers to produce the supply 

 necessary for home consumption. There is general 

 prejudice against wheat production at present, and 

 many farmers would turn to pastoral pursuits exclu- 

 sively. But this is trespassing on the grounds of the 

 concluding chapter. 



It should be remembered that the Australian wheat 

 crop has been purchased under a somewhat similar 

 scheme for the past three years. A " wheat pool" was 

 arranged by the Governments of the Commonwealth 

 and the States concerned. There is now no private 

 dealing, and the wheat becomes the property of the 

 several State Governments which arrange for sale either 

 by distribution to millers, or by export, through the 

 Australian Wheat Board, which was set up mainly for 

 the purpose of distributing freights among the States, 

 and fixing local prices. The price thus fixed is 4s. 9d. 

 per bushel, but this does not refer to exported wheat. 

 Growers are paid a fixed minimum price in advance 

 (2s. 6d. per bushel on 1916-17 crop), and the amount 

 which they will ultimately receive is dependent on the 

 price the Governments realise on their exports. Shipping 

 difficulties have been the most serious problem, but in 

 spite of the scarcity of freights the exports during the 

 past eighteen months have been in excess of the averages. 

 So far as my investigations have gone, it seems that the 

 scheme has been more successful than any other type 

 of price control. The special problem of making advance- 

 ments to farmers on their crops has given it added 

 importance. It seems certain that this method of 

 control will be adopted more generally. The methods 

 of exchange are the real obstacles to price fixation, but 

 by commandeering the supplies this difficulty is removed 



