Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-07-12
NEED CONTROL LAW
NOW, SAYS HOOVER
Farmer and Consuming Public
Suffer, Spectators Reap
Unearned Profits.

both the farmer ana the consuming pubic [
are suffering while food spectators make
unearned profits from the delay in enact
ment of food control legislation. was given |
out tonight at the White House.
Unless strong and efficient government
action is Immediately taken. the food |
administrator reported, the farmers will |
face a slump in wheat prices and con- |
sumers will be caught in n situation even |
more serious than that which already is |
resulting in actual under-nourishment'
in the great consuming centers. The |
Spectator, 1t is declared is taking a large !
part of the prices now paid by con-
sumers.
Mr.. Hoovers letter follows:
Dear Mr.. President
I'm response to your request I send you
herewith the following notes compiled by
myself and my assistants upon the
present situation with regard to wheat.
1.-THE 1917 harvest promises to
yield 67S,00O.00O bushels. The normal
internal consumption and seed re-
quirement (assuming carry-over OF
same volume in 1918 as in 1910
amounts to about 6O0.OO0.000 bushels,
thus leaving a theoretical export bal
ance Of 100000 bushels. The con-
servation measures are already having
a marked effect and it Is not too much
to hope that the national saving may
be 100000 to 100.ooO,0o0 bushels. and
therefore the export balance increased
to. say 15s,0OO,0OO to 1S0.O00,000
bushels.
"2-The experience this year in the
rampant speculation, extoItionate prof
it's and the prospect of even narrower
supplies than 1915 harvest and carry
over must cause the deepest anxiety.
No better proof of the hardship work.
ed upon our people during the past
year needs be adduced than the reci-
tation of the fact that the producer
received an average of $1.51 per BUSH
ell for the 1916 wheat harvest yet
wheat has been as high as 1926 at
Chicago and the price of flour has
been from time to time based upon
this speculative price of wheat. SO that
through one evil cause or another the
consumer has suffered from SO to 100
, per cent. and the producer gained
nothing.
AFTER much study and investigation, 1t
is evident that this unbearable increase in
the margin between producer and con-
3 sumner is due not only to rank speculation
8 but more largely to the wide margin Of
profit demanded by every link in the chain
!, to insure them from the great hazards of
: trade in the widely fiuctuating and danger
n Gus price situation during year when all
normal sterilization has been lost through
: the interruption of the world trade and
/ war. All these factors render it vitality
: necessary to initiate systematic measures
= which will absolutely eliminate all posi-
bility Of speculation, cure extortionate
I profits and effect proper distribution and
a restrictions on exports to point within
: our own protection. These measures can
v not be accomplished by punitive prosecu-
a tons of evil-doers. but only by proper and
anticipatory organization and regulation
all along the distribution chain.
:. ''3-During recent months the allied
=. governments have consolidated their buy
ing into one hand in order that they
g might relieve the burden OF speculation
- from their own consumers and as the
restricted exports to neutrals are but a
minor item, the export price. il not con-
trolled. is subject to the will Of the allied
buyer. SO that in a great measure the
American producer is left to that buyers
. judgment and Is without voice.
u Furthermore, in normal circumstances
United States and Canadian wheat is
: moved to Europe largely in the fal
months. such shipments averaging about
10000. 600 bushels per month and relieving
i a corresponding flow from the farms into
v the interior terminals. This year. owint
>, to the shortage Of shipping, the alliet
d supplies must proceed over a large periot
II of the year and will not during the fal
e months apparently average over 100000
70 to 25,OOO.0OO bushels per month
e I'VE must. therefore, expect glu
:. in our interior terminals during a con
d siderable period. The financial re
l. sources of the grain trade are prob
= ably insufficient to carry this eXtr
II load without the help of speculator
= and moreover, the consolidation o
II practically all foreign buying in tn
ID hands of the allied buyer has furthe
l. tended to diminish the resources o
l. capital available by putting a numbe
l. of firms out of business. and limit
,e the financial capital available in ex
port trade.
n 1.-The net result of this situation
& that unless some strong and efficien
tn government action is Immediately set
s. tied and brought into play. the Ameri
3D. can producer will face slump j
wheat. and in any event. the price c
export wheat will be dictated by
, single agency and the American cor
sumner will be faced with the situatio
that a large part of the essentis
Of Ibreadstuffs has passed into the hand
of SPECTATORS; for some one must bu
and hold not only the normal fo'
o. from the farmer but this probable glu
I'm "4-With great reduction in the cor
Oh sumption Of wheat bread now fortl
III nately in progress. the employment {
our mills must be greatly diminishe
'te and with the reduction of domest
-four production, and our daily fee
from wheat residues will be great
r. curtailed. Therefore we must indu.
-. foreign buyers to accept -four instea
~, Of wheat
-. '6In order to do justice to the pr
10 ducers who have shown great PATRIOTS
M In special effort to increase productit
an In 1917 and to further stimulate the effor
~. Of 1918. 1t IL absolutely vital that we sha
Nv, protect the farmer from slump In pri
"a this year due to a glut as above or fro
the uncontrolled decision of any OIL
ha buyer. l am informed that most of Il
"a allied countries have fixed the price
wheat to the farmer at $3.50 per bush
and many of their producers believe tn
as allies 1t is our duty to furnish whe
at price which delivered to them W
lns not exceed their domestic price. in 9th
W, words, about 1.50 per bushel in Chicago
-" Neither their responsible officia
~ nor l hold this view because / co
ar. slider that the stimulation to produ
he ton II no other reason. Is In the lol
ely run In the interest of the allies. The
st. Is however. a. limit to price which
} trespasses upon the rights Of tho col