WHEAT STUDIES OF THE FOOD RESEARCH INSTITUTE VOL. VII, NO. 9 (Price $1.00) AUGUST 1931 THE INTERNATIONAL WHEAT CONFERENCES DURING 1930-31 Low wheat prices have provoked distress in agriculture in all countries in which wheat is a prominent crop. In consequence a widespread and intensive revival of agrarian agitation has occurred. Higher wheat prices are sought. The' net wheat-importing countries are in position to raise domes­ tic wheat prices through tariffs and other restrictive regula­ tions; Germany, France, and Italy furnish the outstanding illustrations. The net wheat-exporting countries have at their disposal as instruments for the raising of wheat prices only direct subsidy or indirect bonus, and these have not been applied to any significant extent. In consequence, producers' prices of wheat in the wheat-exporting countries present an extreme contrast with producers' prices in the importing countries which have established high protection. The wheat-surplus-producing countries have held nu­ merous conferences to promote collective action for the pur­ pose of raising wheat prices. Sixteen of such conferences are here reviewed. Broadly stated, the movement for con­ certed action in the international marketing of wheat has developed into a quota plan, which was formally presented at the recent London conference of wheat-exporting coun­ tries. The quota plan for marketing wheat would represent essentially the sale of wheat by negotiation, largely under governmental direction, which would tend to be political. At the London conference only the United States desired a continuation of international marketing of wheat upon es­ tablished grain exchanges. Under the opposition of the dele­ gation of the United States, the quota plan failed of official acceptance. The topic represents a chapter in the annals of governmental control of primary materials. It is the first time an international monopolization has been sought to control a staple foodstuff. STANFORD UNIVERSITY, CALIFORNIA August 1931 WHEAT STUDIES OF THE FOOD RESEARCH INSTITUTE The central feature of the series is a periodic analysis of the world wheat situation, with special reference to the outlook for supplies, requirements, trade, and prices. Each volume includes a comprehensive review of the preceding crop year, and three surveys of current developments at intervals of about four months. These issues contain a careful selection of relevant statistical material, presented in detail in appendix tables for reference purposes, and in summary form in text tables and charts. Each volume also includes six special studies bearing on the interpretation of the wheat situation and outlook or upon important problems of national policy. Subjects of issues published in recent volumes are listed inside the back cover. The series is designed to serve the needs of all serious students of the wheat market, in business, government, and academic circles, by summarizing and interpreting basic facts and presenting current developments in due perspective. The special studies are written not merely for students of the wheat market, but as well for various groups of readers who are especially concerned with the fields discussed. Volumes I-VI are now available, bound in red buckram, at $10.00 each. The ten issues of Volume VII will be published monthly from November 1930 to September 1931, except in April 1931. The subscription price for the volume, including a temporary binder, is $10.00. Indi­ vidual issues may also be purchased separately. Orders, subscriptions, and other communi­ cations should be addressed to FOOD RESEARCH INSTITUTE, STANFORD UNIVERSITY, CALIFORNIA; for Great Britain, to P. S. King & Son, Ltd., Orchard House, 14, Great Smith Street, West­ minster, S.W. 1, London; or, for continental Europe, to Martinus Nijhoff, 9 Lange Voorhout, The Hague, Holland. Entered as second-class matter February 11, 1925, at the post-office at Palo Alto, Stanford University Branch, California, under the Act of August 24, 1912. Published by Stanford University for the Food Research Institute. Copyright 1931, by the Board o/Trustees of the Leland Stanford Junior University FOOD RESEARCH INSTITUTE STANFORD UNIVERSITY, CALIFORNIA DIRECTORS CARL LUCAS ALSBERG JOSEPH STANCLIFFE DAVIS ALONZO ENGLEBERT TAYLOR The Food Research Institute was established at Stanford University in 1921 jointly by the Carnegie Corporation of New York and the Trustees of Leland Stanford Junior University, for research in the production, distribution, and consumption of food. THE INTERNATIONAL WHEAT CONFERENCES DURING 1930-31 INTRODUCTION Economic distress breeds political action. prices were sought by wheat producers in When, in the early summer of 1929, the exporting and importing countries; warn­ prices of wheats in the United States, ings that these bilateral efforts implied the Canada, Argentina, and Australia ap­ equation of larger supplies with current proached a dollar a bushel, with corre­ demands at higher prices fell on unwilling sponding positions in other exporting ears. The price declines which antedated countries and in importing countries except the onset of the business depression were as modified by tariffs, this was the signal for particularly distressing to wheat growers. a flare-up of agrarian agitation. The im­ The subsequent realization that the decline provement in wheat prices during mid­ in wheat prices was in part the concomitant summer and partially maintained into the of a world-wide business depression has autumn did little to as- not served as a consola­ suage distress of wheat tion. Just now interna­ growers. In midsummer CONTENTS tional commentators take of 1930 the wheat price PAGE occasion to declare that touched one dollar a Introduction . ............ , 439 tariffs and other restric­ bushel at Liverpool, with The Earlier Conferences . ... 440 tions have contributed to The London Conference of declines below that fig­ May 18-23, 1931 ........ 451 the decline in the price of ure in the exporting Concluding Observations .. 463 wheat; on the other hand, countries. This recession Appendix ............... 467 one must say that the de­ reintensified agrarian un­ cline in price of wheat rest, both in importing has contributed to the and in exporting countries. That other raw erection of tariffs and other restrictive materials suffered corresponding price de­ regulations. Political interventions are not clines served in no wise to make low prices likely to be invoked by prosperous pro­ less unacceptable to wheat growers. The ducers; the controls of rubber, nitrate, intervening year and a half has witnessed sugar, tin, silk, and other raw materials did many restrictive interventions designed to not arise from high prices. Political inter­ improve wheat prices in net importing vention is provoked by low prices. countries. On the other side of the picture It is the purpose of the present study, stand numerous proposals to influence up­ combining description and exposition, to ward the still further depressed price of portray the occurrences, objectives, and wheat in exporting countries. Some of deliberations of the several international these were internal, as in the case of the conferences, devoted largely or exclusively pegged wheat price of the United States to wheat, which have been held during this Grain Stabilization Corporation; but oth­ interval. In the case of agriculture, politi­ ers sought collective action. The agitations cal intervention is all the more easily pro­ which were primarily internal became es­ voked because agriculture is so wideflung an sentially international. Wheat growers occupation, and the rural popUlation repre­ probably took their cue on "concerted sents so large and influential a proportion action" from the League of Nations and of the public. Even in pre domina tingly in­ sought thus to secure alleviation through dustrial countries, the rural population is co-ordination of policies. politically strong and able to secure excep­ While net wheat-importing countries tional favors, as has been well illustrated have sought (among other things) to de­ in the sugar subsidy in England. vVe take velop self-containment, the net exporting it that the wheat conferences are to be countries have sought to expand or at least judged from this standpoint. That agrarian retain their volumes of exports. Higher unrest is frequently exploited, in further- WHEAT STUDIES, Vol. VII, No.9, August 1931 [ 439] 440 TIlE INTERNATIONAL WIlEAT CONFERENCES DURING 1930-31 ance of political objectives lying outside ing countries have been willing to raise the of agrarian relations, does not serve to con­ price of bread to their urban classes, in tradict this view. order to favor their landlords and peasants. In the broad sense, the movement em­ Nevertheless, monopolization lies inherent bodied in the series of conferences devoted in all plans for international control of the to wheat involved something approaching marketing of wheat. The past decade has an international monopolization of wheat. witnessed many attempts on the part of pro­ It is beside the mark to urge the dire dis­ ducers, with assistance of governments, to tress of producers and to suggest that the control the marketing and raise the prices producing countries would display a be­ of primary materials. The case of wheat is nevolent attitude toward consumer coun­ noteworthy especially for the number of tries. It is to be conceded that the ultimate countries involved. It is also noteworthy best interests of urban classes everywhere because of the social importance of bread would be advanced by restoration of pros­ which is the staff of life of white peoples perity in agriculture and net wheat-import- and represents the focal point of the dietary. 1. THE EARLIER CONFERENCES In the deliberations of the International 1. Conference at Geneva, January 6-9, Economic Conference, held in Geneva in 1930 1927, the world-wide distress of agriculture 2. Conference at Geneva, February 17- was accorded significant attention. But these March 24, 1930 deliberations were based upon the unstated 3. Conference at Bucharest, july 21-23, assumption that the price level had become 1930 stabilized. It was indeed realized that the 4.