The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-08-13
Hoover Announces Plan For
Handling Wheat Market.
Now Disrupted by the War
SPECTATORS FACE
STRICT PROSECUTION
Unless Price Of Bread Can Be
Reduced, Says Administra-
tor, Country Cannot Expect
to Maintain Present Wages

Washington. Aug. 12.-Herbert g
Hoover the food administrator. an J
nounced today the plans for the con-
troll of wheat, -four and bread. Ihey
are specific and comprehensive They
have been worked out fully in view
Of the disrupting and disturbing con-
ditions of the European war and tbs
part this country still has to play.
They provide:
First For the vigorous prosecution
of all persons who hold more wheat
or -four than is required in their nor
| NAL business.
Second. For the maintenance OF
fair price throughout the country, by
Selling, if necessary. the entire 1917
| harvest and determining the cost to
! the consumer
| Third For food administration
agencies at the principal wheat ter
| mirals throughout the country.
| Fourth For the restriction of stor-
age to thirty days. unless such per-
nit is given by the food administra-
| ton.
| Fifth For. the elimination of specu-
lation by compelling all mills and ele-
| ators with more than 100 barrels
| daily capacity t. t'ke out govern
| emit license The regulations will
20 into effect on september /.
Mr. Hoover believes that by rigid
application of the regulations the
| price Of wheat can be established
throughout the year. With the price
| OF wheat stabilized il is believed that
the price Of -four will. conform and
thus a stabilized price Of bread will
| be maintained.
Wheat Market Disrupted.
In announcing his plans. Mr..
| Hoover says the disturbance to the
| worlds commerce and short supply
has caused a greater disruption OF the
normal markets for wheat than any
other cereal As a result of the isola-
ton of certain OF the worlds wheat
producing countries. by either bel
ligerent lines or short shipping. he
says. the normal determination OF the
price of wheat by the ebb and now
of commerce. is totally destroyed.
In order to control speculation ana
| obtain ore equal distribution al the I
ava ia Bile wheat and -four between
their countries. he announces the al
lied governments have placed the
whole purchase Of their supplies in
the hands of one buyer Also the
European neutrals are now buying
their wheat through single govern
ment agents instead of in the normal
| course OF commerce Therefore, the
EXPORT price of wheat and -four. ana
| thus the real price. II not controlled.
| will be subject to almost single wiz
of foreign purchasers
In normal times American wheat
moves largely to Europe in the fall
months This year. the shortage OF
shipping necessitates its distribution
over the entire year. Therefore.
there is danger OF glut In our ware.
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 sub
marines these would be available ana
might seriously demoralize the Dc.
mand for American wheat.
No Price On 1917 Crop.
| II must be clearly understood that
the guaranteed minimum price OF -
per bushel for wheat set out IN the
food bill does not apply to the 1917
harvest, but only to the 1918 har-
vest and then under conditions which
must be elaborated. There 10, theres
fore, no determined price for II
| 1917 harvest.
| 1t is clearly pointed out that ~
the result Of this situation the nor-
NAL price-making machinery IL en-.
tirelv broken down unless some ef-s
icient government action 10 brought
into play These points are made:
| First The American producer may
face a slump IN wheat. possibly be-
low his production cost.
/ Second The export price OF wheat
which ultimately determines the real
price is at the will OF single agency.
Third. Some one must buy the SUR
plus wheat at any given moment ana
IL the surplus passes into speculative
hands it will be held for higher prices
later In the year.
Fourth With stabilized prices. e1.
ira hazards are introduced into all
distribution links which must be paid
for by the consumer. It must b.
evident that the United States govern
ment can more Justly deal with this
situation than any OF the agencies
mentioned.
Hoovcr's Course Outlined.
Therefore. the food administration
has determined to take the following
| course:
IN order to eliminate speculat1oa
in wheat and -four, all elevators ana
mills over 100 barrels daily capacity
will be required to take out . gov
eminent license and the conditions
1 OF this license must be:
That only reasonable and custoU-
airy charges shall be made for wArAe
house service: that no wheat shah
be stored for more than thirty dAyD
without the approval of the food al
ministrator: that certain infornnaAton
MS to the receipts and shipments shall
be supplied regularly. Grain e.
lchanges are being asked to suspen4
all dealings and quotations In fatuEQ
wheat These regulations will come
4 into force September !. ana The ~
,censes will be prepared thh Wee
are excepted By the toad bglk M
housAvAr onlv an01fon - MNfnnl