TTHAT MKASI:KKS DOES PRUDENCE 



Klcratdrs, drain Urnnurit-s and Warrants. 



Airainsi tlio possibilities of delayed dispatch we 

 must prepare by the erection of suitable storage places, 

 and against the financial, disasters of accumulated har- 

 TCvSts, we must prepare by the utilisation of the war- 

 rant . 



STORAGE AND THE REGULATION OP SUPPLY 

 AND DEMAND. 



Against possible abundance of production and res- 

 tricted demand we must have recourse to storage- We 

 have the scientific basis of calculation and observation 

 to the effect that every fifth year (approximately) cul- 

 tivation is a failure as far, as cereals go, that production 

 on an average does not come up to consumption, that 

 no country is actually independent, that every two 

 years out of five the poor harvest affects the average 

 of consumption- It has to be reduced, or made up by 

 imports from foreign countries. 



STORAGE ALONE CAN NORMALISE THIS. 



Against low prices ruling in comparison to costs 

 of production, we have no remedy but we can at least 

 reduce the costs of production to a minimum by adopt- 

 ing every possible economy . Under our present system 

 of production we know that we can still produce cereals 

 at one half the present cost, that we can still compete 

 even on the present basis of prices and make our for- 

 tunes if we undertake to work and produce under mo- 

 dern systems with modern aids. We have an extraordin- 

 ary margin for economic warfare. Cereals can fall to 

 less than $6 per 100 kilos on our market and we can yet 

 undertake their cultivation with profit to ourselves, if 

 we will but adopt rational methods. No producing coun- 

 try has so many possibilities as Argentina in its favour, 

 none can cultivate cereals for sale at such prices on the 

 consuming markets of Europe ; the United States be- 

 cause she needs for her own consumption ; Australia 

 lies less favourably placed by nature, in every respect 

 by distance, climate, soil, facility of cultivation; New 

 Zealand the same; Canada too, is in a similar position, 

 due to her climate and the tremendous distance of land 

 transport, and the facilities of disposing, of her crop 

 nearer home at better prices; India because she has a 



