Norwich bulletin., 1917-07-11
FOOD sPEcuLAToRs
 CONTROL PRICES

prices now paid by consumers. Practically Helpless Now.
 s@we are practically helpless to safe guard either the farmer or the con- sumer," concludes MT. Hoover, until the pending legislation is passed" The report, in the form of a letter to the president, was issued through
 the public information committee with the statement that publicity was given it 'in order that the country may know how serious and far-reach- ing the consequences may be both to the farmers of the country and to the consumers, of the present delays in passing the pending food legislation" No Comment by President. No comment by the president ac- companied the report, although he has more than once demonstrated his inn patience over the repeated delays in congress which have kept the entire food control program in state of un- certainty for weeks. MT. Hoovers let ter follows:
 Mir. Hoover's Letter
 Dear MT. President: In response to your request, send you herewith the following notes compiled by myself
 and my associates upon the present situation with regard to wheat. HI "1-The 1917 harvest promises to IT yield ,678, ,000,0 900 bushels. In the in ternal consumption and other require
 ment (assurning a cary-over of same
 volume in 1918 as in I917) amounts
 to about 500, 900, 900 bushels, thus Ieav- ing a. theoretical export balance of
 7s.00O,o 900 bushels The conservation
 measures are already having a marked effect and it is not too much to hope that the national saving may be S0.- II 100000 to 100,000,OOO bushels, and l therefore the export balance increased | to, say 15S,000. .000 to 180, ,O0O, 600 bush | els.
 Extortionate Profits.
 @The experience this year in the
 rampant speoulation, extortionate I nd he oF l rower supplies than 1916 harvest and ] carry-over, must cause the deepest | anxiety No better proof of the hard | ship worked upon our people during | the past year needs be adduced than 1 the recitation of the fact that the pro- ducer received an average of 1.51 per bushel for the 1916 wheat harvest: yet, wheat has been as high as 325 1 Through one evil cause or another the consumer has suffered from 50 to 100 1 per cent, and the producer gained nothing. Margin Between Producer and Con- sumner. Tt is evident that this unbearable 1 increase in the margin between pro ducer and consumer is due not only to rank speculation but more largel, |
 to the wide margin of profit demanded ! by every Hnke in the chain to insure
 them from the great hazards of trade in the widely f1uctuating and danger ous price situation, during year when all normal stabihzation has been lost through the interruption of world | trade and war. All these factors render it vitally necessary to initiate systematic measures which will abso-
 lutlev eliminate all possibility of spec uiation. a.s sasza@ss.Ezeaap
 Allies Have Consolidated Buying.
 "3-During recent months the allied governments have consolidated their buying into one hand in order that they might relieve the burden of spec -la% In a great measure the American pro- ducer is left to that buyers judgment 1 and is without voice.
 Furth9Tmore, in normal circun- wheat is moved to Europe largely in the fall months, such shipments av- eraging about forty million bushels per month. This year, owing to the shortage of shipping, the allied ship ping will not during the fall months. apparently average over 2o, ,00o, 600 to 25,o00,000 bushels per month.
 Gut in Interior Terminals.
 We must, therefore, expect a glut in our interior terminals during a considerable period. The financial re- sources of the grain trade are probably insufficient to carry this extra load without the help of speculators.
 Will Face Slump in Wheat.
 The net result of this situation is that unless some strong and efficient government action is immediately brought into play, the American pro- ducer will face slump in wheat and wheat will dictated by a single agency and the American consumer will be faced with the situation that a large part of the essential breadstuffs has passed into the hands of speculat- orS.
 Must Keep Mills Busy.
 s4-With great reduction in the of wheat bread. the em- of diminished and with the reduction of ' domestic four production our daily l feed from wheat residues will be great r. curtailed. Therefore. we must in duce foreign buyers to accept flour in stead of wheat.
 "5-In order to do Justice to the ( producers and to further stimulate their efforts in 1918, it is absolutely vital that we shall protect the farm CT this year I am informed that most of the allied countries have fix V ed the price of wheat for the farmer [ at $1.S5 per bushel and many of the s producers believe that allies it is z our duty to furnish wheat at a price ( which delivered to them will not ex- z ceed their domestic price. about $1.50 T per bushel in Chicago.
 A Limit to Price.
 Neither their responsible oficiaIs nor l hold this view because I con sider that the stimulation to produc- tion. if for no other reason, is in the i, long run. in the interest of the allies. There is, however, a limit to price which so trespasses upon the rights of the consumer as to defeat its own { subject through strikes raises in wages and social disturbances in the It is with the view to find ing solution to these problems that legislation has been proposed
 '6-The proposed food adminfstra- \ ton has conferred with many hun dreds of patriotic men in production n and distribution and has investigated ? the condition of the consumers in many centers- Three facts stand out plainly enough for our investigations. 2
 Farmer Will Need Protection.
 First, that In this situation the e farmer will need protection as to the S price of wheat, and second, that large t masses of people in the consuming centers are being actually under-nour- h shed today, due to the exorbitant cost it lfrlira md thof fI,a< l .