The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-31
COMPROMISE Is
REACHED AFTER
CELEBRATING
FOR THREE DAYS
La bor Representatives
First Voted for a Price
of $1.84 a Bushel
ANNOUNCED BY
THE PRESIDENT
rs Guaranteed Price TO.
Continue Until 1918
Price Takes Effect

&
washington. Aug. S1.-The price
Of number one Northern spring
wheat was fixed at $2.2O a bushe1 at
Chicago for the 1917 crop yesterday
by the wheat fair price committee,
headed by III. A. Garfield, whose find
ings, reached after three days deli
beration, were submitted to and ap-
proved by President Wilson.
Labor representatives on the com
mittee voted first for $1.S4 and the
farmers for $3.50. After long dis
cussion the compromise at $3.50 was
approved unanimously.
The announcement was made at
the White House in the following
statement by the President:
Section IL, of the food act pro-
vfdes, among other things, for the
purchase and sale Of wheat and flour
by the government, and appropriates
money for the purpose. The pur-
chase Of wheat and -four for our al
lies, and to a considerable degree for
neutral countries also. has been plac-
ed under the control of the food ad-
ministration. ] have appointed a
committee to determine a fair price
to- be paid in government purchases.
The price now recommended by that
committee-$2.20 per bushel at Chi
cago for the basic. grade-wil be
rigidly adhered to by the food adj
ministration.i
viii Stabilize Price.
%It is the hope and expectation OF
the food administration and my. own
also, that this step will at once
stabilize and keep within moderate
bounds the price of wheat for all
transactions throughout the present
crop year. ana III consequence the
prices of -four and bread also. The
tood act has given large powers tor
the control of storage and exchange
operations. and these powers will be
fully exercised. An inevitable con-
sequence will be that f1nanciaI deal
ings cannot follow their usual course.
Whatever the advantages and disad-
vantages of the ordinary machinery
of trade, II cannot function well un-
der such disturbed and abnormal
conditions as now exist. In its place
the food administration now fixed for
its purchases a fair price, as recon-
mended unanimously by a commit
tee representative of all interests and
all sections, and believes that there
by 1t will eliminate speculation,
make possible the conduct of every
operation in the full light Of day,
maintain the publicly stated price
for an. and, through economies made
possible by stabilization and control,
better the position Of consumers al
so.
'.Mr. Hoover, at his express wish.
kas taken no part in the deliberations
Of the committee on whose recon-
mendation Is determined the govern
ment's fair price. nor has he in any
way intimated an opinion regarding
that price.
Report of Committee.
The report Of the committee, ad-
dressed to the President follows:
''The undersigned committee has
been asked by you to recommend the
price. which the government should
pay for the 1917 crop OF wheat. In
its deliberations the committee has
kept constantly in mind the follow
ing factors:
s.First-The fact that the United
States is at war.
'Second-The need of encouraging
the producer.
.'Third-The necessity of reducing
the cost of living to the consumer.
Normal laws of supply and demand
have been violently interfered with
and congress has undertaken to eff
set this disturbance by comforting
extraordinary powers upon the Prest-
dent to stabilize prices. Each of the
foregoing factors grows out Of con-
ditions which have received careful
attention OF the committee. Chiefly
among them are: That the wheat
yield in a great and important Sec
tion OF the country has this year
been below the normal: That over
against this situation is the crying
need among the whole body of the
especially the wage earn
ers, that the rising tide Of costs shall
be stayed and reduced as rapidly as
possible consistent with the welfare
OF the producer; that the govern
ment is at the present time engaged
in the great task of reducing and ,
costs Of other staples;
abundant for its needs, even disre- |
garding the stores In Russia: but be-
cause OF lack OF shipping and war
the burden of supplying |
wheat to the allies and to neutral |
nations rests for the time being upon /
the United States and Canada.
"Your committee also has consid- |
cred the fact that the government |
price for the 1917 wheat crop is in
effect q continuing guarantee until /
the minimum price guaranteed by /
congress for the crop Of 1918 goes
into effect July /. 1918. II has con-
sidered the relation of the 1918 |
minimum price guaranty to the price /
here recommended. 1t has also con-
sidered the effect which an early /
termination OF the war would have /
upon the markets Of the world.
In reaching its conclusion, the
has been aided by the
principles you have announced, that 1
q fair price should be based upon 1
the cost Of production for the entire
country, plus a reasonable profit. We /
have relied upon the cost estimates
for the crop Of 1917 furnished by the i
United States department Of agricul-
ture. checked by the results of our
inyestiga ations. and the
evidence submitted to the committee
BY producers and their representa-
siveg.
The committee has considered the