201 



exports of cereals, rapidly augmented her exports until 

 they reached ten millions tons; the States in the effort 

 to extend the exports agreed to concede a bonus on 

 exportation and, to secure continuous production, gua- 

 ranteed a minimum, price below which farmers should 

 not sell their cereals, even after the war arid its de- 

 mands had ceased, and if they did the State would ac- 

 cept the responsibility for the difference. Already the 

 value is below that fixed ($7.45 gold American per 

 3 00* kilos) and the United States government is called 

 upon to respond for a difference equivalent (.0 millions 

 of dollars gold. Production last year 40,000,000 tons; 

 35 per cent, above average of 1917 and 50 per cent. 

 above normal average. 



(Guaranteed State prices for export Wheat $12.50, 

 Oats $7, Linseed $15) . 



In regard to the extraordinary efforts made by the 

 ^Qorth American farmers to supply the .Allies with 

 foodstuffs, it must be remembered that much of the 

 tremendous exportation attained was the result of eco- 

 nomising consumption, the need for which has now 

 passed, and there are already signs that in the near fu- 

 ture the exportation of cereals by the United States 

 will return to the original figures, and finally tend to 

 disappear altogether except in years of remarkably 

 bountiful harvests. Annual consumption approximate- 

 ly 20 million tons, same as average production annu- 

 ally. 



This will also affect Canadian exports, Uie increas- 

 ed production being absorbed by her neighbour in the 

 long run. 



The difficulties are over the immediate disposal 

 of the present production, owing to bountiful harvests. 



Australia, as we have seen, has harvested the most 

 remarkable of crops but unfortunately cereal growing 

 even during the prosperous years of high war prices 

 plus bonusses for production, has not proved exception- 

 ally profitable : although it has put reasonp.ble profits 

 into the pockets of the farmers, it has been at the ex- 

 pense of the State Treasury. 



There is no evidence that this policy will be per- 

 sisted in especially as there is a surplus awaiting ex- 

 portation exceeding 6,000,000 tons to-day. 



The difficulties of transport have been especially felt 

 In Australia where the accumulation of cereals was so 

 great that, owing to the precautions not having oeen 

 taken to erect elevators and grain granaries for the 

 safe storage of the crops, no less than one liiird of the 



