Salt Lake Telegram | 1931-07-27 | Page 12 | Wheat Aid beyond Power of Nations

TAID BEYOND t O O POWE OF NAINS I Analysts Show That Overproduction Overproduction ducton Cannot Be Cured by Government CHICAGO July 27 The R-The P The Grain Market Analyst club cub numbering the leading grain grai statisticians and ad crop crp experts as n Its It members member blamed steadily increasing supplies and efforts ef forts to t withhold the surplus from the market for tho the present world wheat situation The analysis rele released c yesterday said that wheat had very little value except for human food fod and a surplus surplus sur plus plu beyond human consumptive Capacity capacity ca Ca- c. c paly means mean a a cumulative unwanted surplus that forces price concessions Continuing the analysts analysis said Efforts Effort t to attribute responsibility for present low wheat prices price to t market mar mar- ma ket manipulation short selling or Rusian Russian dumping break down en cn in i the tho face of a a tremendous and growing world surplus of wheat In comparison with wih world requirements This surplus represents represent the patriotic effort efort to stimulate wheat production In n North America Argentina and nd Australia during the world war to t fill fU the void left by the withdrawal of Russia Russia from the field of at world sup sup ply The acreage added adde in i these countries coun coun- tries tres for that purpose has ha been refined re reo re- re tamed fined even after Russia Rusia returned to t the position of the greatest wheat producer in the and It is i this excessive acreage coupled with wih above above- normal acre yields in the last lat few years that tat produced the world surplus sur sur- plus olus of wheat The world wheat supplies have been Increasing more rapidly annually during the last lat five years than could be 30 absorbed at prevailing prices the report continued In the first five years of or the decade from 1920 to 1925 world available supplies averaged 3 3 bushels bushel per year ear and consumption consumption con con- In the second halt half hal of at the decade from Tom 1925 to 1930 supplies averaged bushels bushel yearly and consumption consumption con con- bushels annually an au the analysts said sId Last Lat year available supplies supple were bushels and consumption about 3 3 bushels bushel In 11 other oter words surpluses were Increasing the he r report por c continued Efforts either Iby by individual cooperation the Canadian Canadian Ca Ca- nadian pools or governmental operations opera opera- Ions ton like the tho federal farm board or state efforts in III Australia to tempo temporarily hold the surplus off the the market market mar mar- ma ket only make the situation worse in inthe inthe i the end through holding out the hope of ot securing profitable prices and encouraging encouraging en en- a continued excess of ot acreage acreage acre age and excessive production The prestige of ot the government backed baked b of at millions of or dol dol- lars ars cannot overturn the Immutable law aw of supply and demand and such efforts efort continued only to serve to waste the taxpayers' taxpayers money and to tomake tomake tomake make the situation worse wore by encouraging encouraging aging the creation creaton of or a further surplus surplus sur plus when It is I the existence of that surplus which is the fundamental tl cause cue of the trouble