Evening star., 1916-10-01
THEODORE W. MOVES. -. Editor
The Evening Star Newspaper Company
Wheat Supply and Flour Prices.

2 Wheat Supply and Flour Prices.
For many years the United States has
produced more wheat than its own mar
kets demanded, and SO it has been able
in great measure to supply the mar
kets of the world with its surplus. In
immense volume the grain has poured
forth from this country to feed the
millions of Europe and Asia, for whom
there was not a sufficient supply at
home This fact has given great graft
fcation to the people of the United
States and has been a source of profit.
So long as the export of wheat and flour
has not affected the domestic price un-
favorably there has been no cause for
protest against this heavy trade. But
the time has come, in consequence of
not only abnormal conditions abroad,
but by reason of possible hoardings
of wheat in this country to affect the
price, when this trade ceases to be a
source of distinct disadvantage and dis
tress. The present price of flour ap-
pears to be reflex of the export trade
in wheat. 1t is higher than at any
time since the civil war, and is going
higher steadily. This rise in the flour
rate means an increase in the price of
bread to the consumer. 1t is beginning
to pinch great numbers of people in this
country to whom the difference in the
price of loaf is a hardship.
As general economic proposition the
price of -four to the people of this
country should be determined not by
the world demand for wheat but by the
domestic demand governed by the nat
ural relation of demand to full sup
ply. The price of -four should certainly
not be- governed by the export price
of wheat if as result of boarding an
inordinate percentage of the entire
American wheat crop available for the
domestic market is sent out of the coun
try. The people of this country, the
source of the greatest world produc-
ton, should not suffer if, as result
Of abnormal conditions in Russia and
elsewhere, wheat in the world market
rises. They should most assuredfy not
suffer If for the purpose of compelling
a NATIONWIDE demand for an embargo,
great Quantities of wheat are held out
Of the market so as to increase the rate
to the miller, and through him the rate
of flour to the baker, and through him
the rate of the price of bread to the
consumer.
Yet whether by reason of the natural
flow of surplus wheat abroad, unduiy
draining the domestic market, or through
the creation of an artificial shortage
in the home market by the boarding of
wheat, the price of -four in this eoun-
try is at the highest point in fifty
years, in the face of an immense har-
vest. This is an intolerable situation,
which demands remedy. If, as sug-
gested, there is a Withholding of large
quantities of wheat in reserve to affect
the price, that fact, if proved, would
justify action by the government to
break the combination which has thus
sought to raise the rates. The storage
Of wheat in such manner is violation
Of the law. Or if there is concerted
movement to affect the price of wheat
and -four to cause demand for an en-
barge, in order to prevent the shipment
of foodstuffs to the allied nations of
Europe, now fighting Germany and Aus
tria, that, too, lies within the field Of
government intervention to bring about
normal conditions. An embargo upon
the export of wheat, as means Of
keeping the prices in America at their
proper point, should be regarded as the
final remedy, if others fail. But what
ever the necessary method of correction,
it must be found and applied, else the
economic situation in America at peace
will soon be as bad as that of the
countries now at war
-SooqE1-