GRAIN FREIGHTS Many years ago the belief was held rather widely that ocean transport costs gave British farmers an effective protection of about io/– per quarter. Sir J. Caird writing in 188o put the figure lower than this, however, and reckoned 30/– per ton or about 6/6 per quarter. But events proved that even the latter figure was much too high for by 1900 the average freight on the wheat imports of the British Isles was no more than 3/6 per quarter. It was higher in 1927, namely 4/7 per qr., but this must be con sidered a modest advance, especially as much greater quantities are now coming on long voyages from Vancouver and Australia. In 1938, the average freight had again fallen 3/7 a unit. The following tabular statements illustrate the points mentioned:— *Some of this may have been produced in Canada; tsome of this may have been produced in U.S.A.
Average Content of Qarartern Loaf 1901-02 and The Flour Trade.—The British trade in imported flour was at one time important and represented as much as 25% of the total British supplies, but now it is only 7.4%, and the reduced trade is maintained with difficulty owing to the fierce competition of Brit ish millers. Canada and Australia are the main sources of supply.
The United States and Canada ship to Holland and a few other continental countries, but foreign flour is mostly barred out by high import tariffs. Practically every civilized country being over milled, all, or nearly all, protect their home markets and at the same time try to export. A good trade is done by the big ex porters with Africa, the Orient, East and West Indies, Central and South America.
A comparison of the figures for 1938 with those of 1900 shows how greatly British Empire supplies have increased since the beginning of the twentieth century, a result largely due to the modern development of transportation.
Between the years 1872 and 1900 freights declined about 2/1I per qr. (4801b.) but this was a mere trifle compared with the fall of wheat prices.
From 190o to 1927 freights rose about 1/I per qr. but wheat in Liverpool rose no less than 21/— per quarter. It is an indisputable fact that freights influence grain prices, but the latter are affected so strongly by supply and demand that usually the resulting price movements quite overshadow any fluctuations caused by varia tions in freight rates.
The following data bearing on the subject is partly taken from American Interior Freights.—As Great Britain and Ireland still draw large supplies from the United States, transport charges from Chicago to New York and thence to Liverpool have a direct bearing on prices at which exporting firms can offer to sell to im porters. The following data give the price of the grain and the transport charges to Liverpool from Chicago.
As Canada is, 1939, the leading grain exporter, it is of interest to compare her transport rates with those of the United States. The cost of transporting 1,000 bushels of wheat from the producer in Canada to Liverpool are also shown.
The rate of 6.3 cents per bushel for water carriage, that is from the head of the Lakes to Montreal, compares with 10.5 cents in the United States for transporting the same unit from Chicago to New York, the distance for each voyage being practically the same. Comparative figures published in 1925 gave more definite information on the point of land carriage. The charge for hauling 10o pounds for 65o miles in Canada was 222c. compared with 32c. in the United States. The average cost in 1937 of transporting a bushel of wheat from the farm in Canada to Liverpool was 382 cents via the Montreal or Vancouver route, or 35 cents via Churchill. From Central Kansas to Liverpool the aggregate cost reckoned for the year 1937 worked out at approximately 35 cents a bushel.