American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1915-07-15
ARGUMENT AGAINST DUMPING WHEAT

Contracts for new wheat we're entered into on
the Chicago Board Of Trade, on June 22nd, at
s8hc a bushel.
This means that spectators sold and bought
wheat Of the new crop at 9Shc a bushel. To fill
such contracts the wheat grower in Kansas, Mis-
souri,, Indiana OF elsewhere will need to sell wheat
at about 80 cents a bushel.
We don't mean that any grower Of wheat is I'M
der obligation to sell any wheat at this price. but
there are some men in Chicago who. on June 22nd,
were certain that they can get new wheat cheap
enough to fill such contracts and to make a profit
in the deal besides.
Whether they can depends entirely and absolute
ly on the growers themselves. If they dump
wheat as they did last year, no person can pre-
dict how low the price will go. If, on the other
hand, the idea gets noised abroad that wheat is
worth $1.25 a bushel and that farmers are going
to hold for such price, then the plans Of the
spectators will go awry, and SIPS will be the
price.
This paper is now receiving suggestions from
wheat growers on the price Of the new wheat The
prices mentioned at this writing vary from 800
to $3.50 a bushel. Not one has suggested a price
under one dollar. Yet there il probably not a
place in the country where a grower can con-
tract his NEW wheat on the day this ia written for
more than 80 cents a bushel.
That buyers are going to try to play safe, which
means to eliminate their risk as far as possible
by buying low, is evidenced in a resolution passed
By the Indiana Grain Dealers Association at its
meeting in Indianapolis. June 8 and 9. as follows:
Whereas, our president The president OF
the association has sounded a note of worn
ing as to the danger in the general practice
of contracting grain for future shipment, on
account Of the numerous elements of I'M
arta{pfu Uroufpc ont Of tho EurOnpan waY
and other abnormal conditions; be 1t
Resolved, That it is the sense of this con-
vention that each and every grain dealer
should exercise extreme caution in contract
ing to buy or sell grain for future delivery,
handling the same only when ready for de-
livery; and be 1t further
Resolved, That because of the continued
violent and extreme fluctuations in price,
hitherto inexperienced by the trade, and the
advanced prices current, all grain should be
handled on a margin of gross profit much
in excess of the margin that has univer-
sally obtained, and extreme care should be
exercised in cleaning and conditioning grain
for shipment as discounts on account Of fail
ure to grade, are now and Will Of necessity
be much wider than under normal conditions.
We believe like resolutions were passed by the
grain dealers of all the States and will be passed
by the National Grain Dealers Association body.
when it meets, as these dealers are well or
sanized and they stand together to help each
ether.
Understand. we have no criticism to make Of
the resolutions. They are just what careful bust
ness men would do under the circumstances. Also
we will say they were forced to take this stand
because Of the way the farmers market The only
people who can produce a condition that would
make the resolution unnecessary are the farm
ers themselves.
The grain dealers expect the farmers to dump
immense quantities of wheat as soon as 1t is
threshed. Naturally they (the growers) expect
the grain buyers to take it But there are "nu-
merous elements of uncertainty growing out Of
the European war" These must be discounted in
advance. which in the burden of the resolutions.
That is, the farmer must assume the risk of the
war ending before the surplus wheat that is
marketed now is called for by the resi- demand. In
other words. the price must be put down to a
point where the buyer considers mis- purchase safe
If the war ends soon and normal prices prevail.
Here we have a condition where the wheat
growers are charged a fearful sum for the buyer
and storer carrying the wheat-the farmer takes
all the risk and pays for It in advance, but II the
possible thing does not happen. the buyer reaps
all the gain and the farmer gets nothing.
Is it possible to conceive of a more foolish pro-
cedure than this?
II the war lasts through another year there Is
no question but what wheat will sell up to 81. so
and beyond 1t. There is hardly a remote ~possibili-
ty Of It ending inside of a year. The warning
countries themselves do not expect the end to
come SO soon but they are making contracts for
war material on the basis Of two years. Notwith-
standing these things. farmers can produce a con-
dition that will force them to accept a price on a
peace basis with no chance to get any more II
the war continues.
The only alternative is for the farmers to con-
troll their own wheat. And don't let this confuse
the reader. He naturally Will say: Well. ] don't
want to take the risk Of the war ending and lower
prices. But remember, we have shown that the
risk will be discounted in advance. You will pay
it in spot cash IL you let the other people store
and control and you will not have a ghost Of a