The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1915-11-11
WHAT GOVERNS THE
PRICE !.' Of :|||. WHEAT?
A GRAIN GROWER ASKS THIS
4 PERTINENT QUESTION OF THE!
INDEPENDENT - HE STATES
} FACTS AND ASKS FOR, INFOR-
I NATION. III nH;j"3H Fn315i% Il
= ~ = OAS' ..ss,f.,,r. fgrsgeE -,T~g,v.
To the Editor Of the Independent:

To the Editor Of the Independent:
Much has been said and written in
the past years relativeatos the price Of
wheat. have been a close student,
of all the available information that l
could get as to what governs the price,
but study the matter in every way
that / can, I am left in just as big a
quandary as before. It does not take
much of student to tell you how GER
tain elements could raise and lower the
price, but that does not answer the
main question, which is, what fixes
the BASE price? A school boy in the
eighth grade could answer correctly
that if transportation rates were low
cred, say 2 cents bushel, that the
price would jump two cents higher
to the farmer, or if the commission
houses and elevators would handle
grain without commission that the
price would increase a corresponding
amount. An enthusiastic terminal ele-
vtaor agitator will tell you that a
model concern such as he has in view
would make the price jump few
cents, the truth of which we do not at
this time wish to argue, while the low
tariff man will tell you that the duty
on grain makes no difference, while
the high tariff enthusiast makes the
broad assertion that the price is fixed
by a tariff and the higher the tariff,
up pops the price to the farmer.
Granting that all these are true, for
the sake of argument, the main ques-
ton is still unanswered, and the Grain
Grower is as far in the dark as he was
before. The main question is apt to
be sidetracked but do not want it to
be lost sight Of so I ask again what
constitutes controls, governs or fixes
the BASE price of wheat? The other
problems as above mentioned are but
incidental and affect the main ques-
tion only obliquely. There are num-
ber of small matters that effect the
increase of the selling price, but how
many effect the base price itself. AS
an illustration, the other day on the
opening of the market at Minneapolis,
and likewise Winnipeg, the report that
the Buffalo elevators were filled
and that the New York Central rail-
road was declining to receive ship
ments until the congestion was reliev-
ed in the New York yards, the price
dropped at both these points frac-
ton of cent, which rose again on re-
ceipt of the news that this report was
untrue These are merely some of the
many things that vary or f1uctuate
prices. But outside of all these things
which raise or lower the marginal
price, there must be something or 9th
er that fixes the base price. Is this
not a demand? And does not the sup
n1v f;x the dapree IF the demand to
certain extent? If the supply is
small, the demand would perhaps not
be greater, but would cause raise in
what the buyer would be willing to
give, or the seller to take. Does this
not then, fix the base price, to which
must be added all marketing charges,
to fix the actual selling price Of a
bushel Of wheat?
This year the world over has been
a remarkable one, in the production of