Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-05-25
TWO,FFTY FOR WHEAT
The copforey

The conference Of northwestern graingrowers held
at Fargo on Wednesday recommended to the federal gov
eminent the fixing of a minimum price of $3.50 per
bushel for No. l northern wheat. with other grades at
a proporuonate rate. The conference was called through
the instrumentality Of the Equity society. and was attend
ed by grain growers, officials of the Equity society, and
authorities on various branches Of economics.
The resolutions adopted emphasize the fact that the
government has asked the farmers of the country to pro-
duce more largely, and call attention to the vastly in
creased cost OF operating under present conditions. They
declare the principle that the government should guar
antee to the farmer profitable prices for staple products
in order that he may be able to meet the demand. They
point out that to meet this demand requires additional
capital and some reorganization of business. They urge,
further, that speculation in food products be prohibited.
1t seems to be generally agreed that for the pur-
poses of the war the government should guarantee a
certain minimum price for wheat, and perhaps for some
of the other great staples. The men who are engaged
in the production Of food need just now the assurance
that can be given only by the government that market
conditions will not operate to their disadvantag e at the
very time when they should feel secure. The needed
assurance can be provided only by the fixing of minimum
prices for products.
Whether the price for wheat should be fixed at $3.50
or some other sum is a matter for computation, and as
the basis of the computation there should be that exact
knowledge of facts which not one person in a thousand
possesses. Pick ten farmers by chance: ask them separ-
ately what it costs to raise a bushel or an acre of wheat:
and ten different answers Will be received. And it will
be remarkable If the highest figures are not double the
lowest. But, when the reasonable cost of raising what
may be considered an average crop of wheat has been
ascertalned to the satisfaction OF the government inves-
tigators. the government should be prepared to take that
wheat at a price somewhat above that cost.
1t is obvious that the government cannot guarantee
profits to the farmer, any more than it can guarantee
profits to anyone else. In the case of manufactured
goods the government can ascertain what will be the
ordinary cost of production under existing conditions, and
can require the manufacturer to furnish the goods at
But it cannot guarantee him against the ordinary risks
Of his trade. 1t must do business with him on the assump-
ton that he will use due diligence and prudence in the
management of his affairs and that the hazards which
attend his business will not be more or greater than
usual. So the government cannot, and If it could. 1t
should not, undertake to guarantee the farmer against
his own negligence or the negligence Of his employees:
against unfavorable weather conditions. These things
are the ordinary hazards of a business in which he is
engaged voluntarily, and to undertake to provide against
them through government agency would be to place
a premium on inef7ciency and imprudence. The gov
eminent can and should give to the farmer the assur-
ance that in this emergency the elements which come
properly within the scope Of its supervision will not oper-
ate to his disadvantage.
1t is to be assumed that the government will be
guided in making its decision by ascertained facts. and it
is to be hoped, for the credit of the state and the entire
with the duty Of laying the case before the authorities
sent them tennperately and logically.
If this is done the conference will have had a bene.
fetal influence. Not all Of its proceedings were of an
inspiring nature. 1t is difficult to read. without some
sense OF shock, and of shame, the remarks of one speak
er who predicted, apparently with satisfaction, a price
of IS per bushel for wheat and $50 per barrel for flour.