The evening world., 1915-02-26
FARMERS BLAMED
BY Joe Letter FOR
HIGH WHEAT PRICES
Grain Expert at Bread Inquiry
Declares They're the Real
Spectators.
HOARD UP THEIR GRAIN.
Board of Trade Speculation
Has Tended Only to Keep
Prices Down, He Says.
HOARD UP THEIR GRAIN.


sent the price Of wheat up 20 cents .
bushel before II broke and knocked
him out Of the market, was the nrst
witneas to-day at the State investi-
cation into the rise in the price Of
bread.
You had great deal Of experience
In srainf" asked Mr.. Becker.
"Yes, In 1897" said Mr.. Letter.
"And II came In Q bunchr
''very much So" he replied II
dealt In grain markets all over the
world"
You have dealt In the grain mar
kct since7"
"Yes: at timea."
"This year7"
"No." said Mr.. Letter. II haven't
been in the market for year."
Then Mr.. Becker asked him to tell
about wheat, from the earth to the
consumer. Mr.. Letter began with his
experience when the western prairies
were first sown to wheat. when hours
Of labor were twelve to thirteen q day.
wages SIS q month and found" and
the ground needed no fertilizer. In
those days, go cents a bushel was q
profitable price for wheat. Now. with
wages more than doubled, the working
day cut down to eight or nine hours,
the soil incapable of growing wheat
without fertilizing. and other costs
steadily mounting, the farmer must
have at least 81 a bushel, he declared
SPECULATION ONLY BAR TO
"FARMERS TRUST" He SAYS.
According to Mr.. Letter, the specu-
lators In wheat are really the men
who keep the price Of nour from go
Ing too high.
"If." he said, you abolished spec.
ulation In grain. the farmers would
got together. as the tobacco growers
did in Kentucky. and fix q minimum
price. Then you'd get the farmers
Into q trust that would make all the
Others look puny. II you confihs
dealings to actual cash grain trans
actions and stop dealing In futures
the business would become highly
speculative Immediately.
Tho miller would have to take his
profits right away. You would be
driving people out Of the milling bust.
|
gamblers. who would take real toll
out of the people.
"The man who buys for few
points rise or fall in wheat might Al
well bot his money In faro bank
But you can't stop legitimate specu.
llation. You might a. well stop the
use Of cocaine in surgery because
some people abuse II. There's M
sense In stopping It, because It doe.
more good than harm. 1t u tho sam<
with speculation"
Mr.. Becker asked what the mex
change in the wheat market viii be
you'll see Il jumping up and dowr
In O craxy way, because there's M
speculation" he re 2lted. "Of course
IL they open the Dardanelles-dow
will 20 the marketi But you nigh
AZ well nip pennies az to guess nov
how things are going"
II saw in 1897" said Mr.. Letter, Will
} 4 sad smile, "that wheat was sellinI
at less than cost. and realized tha
. this could not 90 on. Being younl
and not knowing as much a. do now
I thought I'd make money by storinI
and holding the commodity until
could sell It at q proft. But my plan
DIDN'T work. Wheat came out Of cor
ners OF bins and granaries that ha'
, not been anticipated by the Govern
! ment experts. i lost money. Tho onl
.. ones to mako money were tn
, farmers"
Mr.. Becker's questions susgeste
the big grain dealers. elevator own
. ers, raised the price Of wheat by buy
Ing the crop and holding II for specu
.. lation.
'Oh, no." said Mr.. Lsitsr' when
.. ever they try specuiatins they 9
! broke"
"Oh, then, the elevators are mer
: grain rsservoirsf" asked Mr.. Beckel
absolutely" said Mr.. Leitel
"Just a. much as your reservoirs
which you gather and store the raj
and snow that falls. as water for tn
City Of New York"
|. Conditions after the opening Of th
war In Europe. he continued. mad
; the United States the grain marks
; OF the world instead OF Liverpoo
,, II will SO remain until at least ne,
|, September. ~.
,, .''If they open the Dardanelles
: said Mr., Letter, "it will let out froI
, III. 900, 900 TO zoe, 900, 900 bushels OF nv
man food grain crops now stored
a | Southern Russia"
|. FARMER 10 THE REAL 6PECu
!. LAToR. LETTER pEcLAREs.
When asked to tell the causes ,
! the present situation Mr. Letter said