The Birmingham age-herald., 1916-10-03

The present price of flour in Birming- ham has never been exceeded since civil war days.
 Despite the soaring prices that prevail, leading dealers in grain and flour in Birmingham predict that, with the cer- tain rise of wheat, flour will be sold at still higher figures. The quotations vary in the city. The wholesalers are selling to the retailers barrels of flour at figures from $7.5O the lowest, to $40, the highest. In normal times flour sold between $5 and $6 a barrel
 As to how high the staple necessity will advance before the next harvest of wheat, there is some diversity of opin- ion The most conservative estimates are that flour will be sold to the retail CTS at $1o before winter is over. Some admit that there is a possibility of S11 being charged for a single barrel.
 The idea of an embargo on flour, which is being urged by some as the solution to the problem, is not regarded by the wholesalers as a sensible or efficacious plan to hold the price of flour to lower figure. They feel that the farmer in the west is entitled to the profits that will accrue from his sale of wheat and that it would be folly for the gov errment, after encouraging the farmer to plant his lands with grain to prevent him from supplying his trade and thus reaping the harvest.
 The reasons assigned for the enormous advances in flour are the European war and a smaller yield, both in the United States and Argentina. The wheat crop of 1915 was bumper harvest. The crop of 1916 will be approximately 300,000,0Oo bushels below that of the previous year.
 WHEAT CROP SHORT
 The last government reports estimate that the yield in the United States will be 611, COOL 900 bushels. For consumption in this country 575000,000 bushels of wheat will be needed. Over 25o, 600, 900 bushels have been reported for export The shortage that the American consumers will face is apparent.
 The recent advances in the price of flour have been enormous. Since July the price on the best grade of flour has risen $2.50 barrel. The largest advances were made during July and August, for only moderate spurts were made during September.
 We are quoting flour to the retailers at figures from S8 to $40 barrel, Said w. M. Cosby of w. M. Cosby Flour and Grain company. "As wheat is ad- vai.cing in price, it is natural to presume tkat flour will rise accordingly. Before the winter is over, it seems safe to pre- dict that a barrel of flour, of the better grade, will reach the s10 mark This is a very conservative estimate. It is prob able that flour may attain an even higher figure.
 '',rhe wheat crop this season in the United States is far below that of 1915, which was bumper year. It is estimated that it will be nearly 300.000,000 bushels less for the last government report fixes the 1916 yield as ell, ,O00, 900 bushels. In Ar gentina the planters of wheat have fair crop, but the drouth there has diminished the harvest to a ma terial extent.
 If bumper crops had been raised in both countries there would have been natural and normal demand for every bushel at good prices. But, under the present conditions the outlook is admit tedly bad.
 OPPOSED TO EMBARGO
 q do not believe an embargo on wheat would relieve the situation, for, unless Congress enacted the measure before De cember, the movement of wheat to Flu rope then would have been effected. Fur thermore it would hardly be fair to the farmer in the west to rob him of profits l..