32 



had been enormous, according to statistics the greatest on 

 record, and the natural results were that prices were low 

 on the consuming markets and demand scarce. 



(I may here remark that the U.S.A. promises this 

 year to double her previous record, which figures were 

 cited and taken into account by the commission. ) 



Beyond th'is the report did not go: apparently the 

 situation was accepted as beyond remedy. It offered 

 nothing but good advice for the future, and with this 

 contented itself after ciling the effects of -rates of 

 freights on wheat generally. With a pious hope that all 

 would be well in the future it passed on to declare that 

 the disposal of the maize was really hopeless, if the sale 

 could not be made of it abroad, since its use either for 

 manufacturing purposes or for home consumption was 

 out of the question. 



I append the part referring to freights. 



"Our geographical situation is such that North 

 America, favoured by freights, can compete more favour- 

 ably than we can on the consuming markets, to the gen- 

 eral prejudice of our products. This is evident; for ex- 

 ample, if the price of North American wheat is $10 mjn. 

 p<?r 100 kilos, on board, by no means an unsatisfactory 

 price for the producer there, and the cost of freight is 

 $2.50 m|n. to Europe, this wheat can be sold on the. 

 markets at $12.50 m|n. 



"In the meanwhile*, although the freights from 

 Buenos Aires to Europe which were 8 per ton have come 

 down nearly 35 per cent., nevertheless they are quoted 

 to-day at 110 shillings per ton, or approximately $5.80 

 per 100 kilos (this rate is by no means stable, on the 

 contrary, is liable to serious fluctuations) ; at this time 

 there remains but a margin of $6.50 to $7, for our grow- 

 ers, who with this have to compete with the North Amer- 

 icans, calculating the same prices for both wheat on the 

 consuming markets. Under such circumstances the grave 

 depression in price is explicable, but given the fact that 

 there only remains some 1,500,000 tons in stock, which is 

 not so much, this will gradually be absorbed without very 

 grave losses." 



Unhappily the optimism of the commission has not 

 proved so well founded as we all could have hoped. 



THE NEED OF GRANARIES OR ELEVATORS. 



Regarding the situation of the maize market the com- 

 mission, after remarking that >fche same factors, freights, 

 foreign competition, etc., played a similar role here, went 



