202 



production was definitely lost: thousands of tons of 

 wheat rotted away and in order to save the greater part 

 of one year's crop the State was obliged to give a bo- 

 nus on milling it. As flour, it was found possible to 

 store it. To-day there is a stock of flour calculated in 

 half a million tons; but the grave difficulties which 

 have been experienced, even after the tardy attempts 

 to remedy the disaster by the erection of elevators, and 

 the monetary losses which the State has had to stand 

 through the depreciation of the crop and through the 

 absence of facilities for warrants and other means of 

 financing production on a grand scale, have gravely 

 prejudiced the chances of extensive cultivation of ce- 

 reals in the future both from the standpoint of the far- 

 mer and the exporter. 



INCREASED PRODUCTION OF INDIA. 



I do not think we have reason to tear any 

 greatly increased exportation of cereals from India, 

 where too, a remarkable extension in the area dedicat- 

 ed to the cultivation of cereal foodstuffs has taken 

 place, during the last few years. The tendency is for in- 

 creased consumption at home, which fact was already 

 exercising its influence on export surpluses before the- 

 war . 



It is true we are dealing with the British Empire, 

 at the same time our best customer and worst competi- 

 tor, capable of tremendous possible expansion and pos- 

 sibly self-satisfaction ; but everything points to the at- 

 tempts to introduce an "All-Empire" preference over 

 foreign products not impeding the trade in cereals with 

 foreign countries, as ourselves. 



United States, Canada, New Zealand avid India, I 

 do not think we have much to fear from these. 



If we have anything to fear from foreign competi- 

 tion it is not over production, it is in regard to our 

 ability to place our goods on the market at the same 

 rate of profit to ourselves as our competitors obtain. 



The effects of the war. with all its attempts ar in- 

 creased production, will be most felt in the economical 

 methods which have not been imposed during the war, 

 but which post-war competition will impose ; we cer- 

 tainly must anticipate keen competition for some years 

 to come until the natural increase in consumption di- 

 gests the suddenly augmented production. 



When we turn to Europe to our competitors there 

 we have the most grounds for re-assuring ourselves over 

 our future in cereals, provided we can get through the 

 preliminary work of putting our house in order while 

 they are disorganised. 



