The Washington herald., 1917-08-13
ACKNOWLEDGEMENTS
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house system over considerable
period.
There are large stocks Of wheat
which cannot be drawn upon by the
allies during the war. But in the
event of peace or defeat of the sub
marines. these would be available
and might seriously demoralize the
demand for American wheat.
1T must be clearly understood that
the guaranteed minimum price of 500
per bushel for wheat. set out in the
food bill, does not apply to the 1917
harvest, but only to the 1918 harvest,
and then under conditions which must
be elaborated. There is, therefore,
no determined price for the 1917 har-
vest
Slump May Occur.
1t Is pointed out that the result Of
this situation is that the normal
Trice-making machinery is entirely
broken down unless some efficient
government action h brought into
play. These points are made:
THE American producer may face
a slump in wheat, possibly below mis-
production cost.
2-The export price of wheat which
ultimately determines the real price,
is at the will of a single agency.
3-Someone must buy the surplus
wheat at any given moment and if
the surplus passes into speculative
hands it will be held for higher prices
later in the year.
with stabilized prices. extra haz-
ards are introduced into all distribu-
tion links which must be paid for by
the consumer. 1t must he evident
that the United States government
can more justly deal with the situa-
tion than any of the agencies men,
toned
Therefore. the Food Administration
has determined to take the following
course:
I'm order to eliminate speculation In
wheat and -four, all elevators and
mills over 100 barrels daily capacity
will be required to take out a govern
ment license. and the conditions of
this license must be: that only rea-
sCnable and customary charges shall
be made for warehouse service; that
no wheat shall be stored for more
than thirty days without the approval
Of the Food Administration; that GER
tain information as to receipts and
shipments shall be supplied regularly.
The grain exchanges are being asked
TO suspend all dealings and quotations
IN future wheat. These regulations
will come into force September l and
the licenses will be prepared this
week. While farmers cooperative
elevators are excepted by the food
bill. this. however. only applies to
mutual concerns and not to stock
companies. and in any event under the
is likely to stand out
I'm substitution OF the broken
down marketing machinery the Food
Administration proposes to open
agencies for the purchase of all
wheat at the principal terminals,
carrying on it's transactions with
the usual dealers and is prepared to
take the whole harvest IL necessary
in order to maintain a fair price.
1t will resell wheat for export in
such quantities as we can afford
to part with in protection of our
own people on one hand and to sell
on the other to the millers for do
mestic consumption. The admins
tratiOn will make no charge except
normal percentage to cover costs
of the operation and arrangements
will be made which will assure the
government against loss.
TN order that nothing shall be
left to mischarge we are setting up a
properly constituted and indepen-
dent auditing committee which will
check all transactions at every
point.
Price Committee Planned.
THE Food Administration. under
these arrangements. would have a
large influence in effecting the price
OF wheat With a view to determin-
ing a fair price. the President has
approved the appointment of a COM
mittee to be selected from represen-
tatiyes OF the producing sections and
consuming elements in community.
This committee will be assembled un-
der the Craftsmanship of President
Garfield of Williams College, and 1t
will be the duty of this committee to
determine fair price for the 1917
harvest. Upon the determination of
this fair basis, it is the intention of
the Food Administration to use
every authority given 1t under the
bill and the control of exports to
effect the universally OF this fair
basis throughout the whole of the
1871 harvest year without change or
fiuctuation. II should thus be clear
that It will not be to the advantage
Of any producer TO hold back his
grain in anticipation of further ad-
vance, for he will do so only at his
own cost of storage and interest, and
il 1t is necessary for the government
to buy the entire wheat harvest in
order to maintain this fair price in
protection of the producer, We intend
to do so.
Furthermore" declares Mr..
Hoover, 1.-The holding OF wheat or
flour contracts by persons not en-
gagged in the trade, and even when in
trade, in larger quantities than is
necessary for the ordinary course of
their business. is unlawful under the
act. and such cases will be prosecuted
with vigor. And We would advise
such holders to liqpidate their con-
tracts at once"