The Birmingham age-herald., 1917-08-13

Establishing of buying agencies at all the principal terminals, licensing of ele- vators and mills, fixing Of a price to be eonsidered fair, regulation of the mid- dleman and of grain exchanges, with the elimination of trading in futures are the chief features of the plan. The li- censing will begin September 1.
 The minimum price of $2 for wheat fixed by Congress does not become eff fective until next year. but the admin istration proposes to exercise very thorough control over this years crop through powers conferred under the food and export control bills.
 Following is the administration an- nouncement:
 q. The disturbance to the worlds commerce and short supplies has caused a greater disruption of the normal mar kets for wheat than any other cereal.
 As a result of the isolation of certain of the worlds wheat producing countries, by either belligerent lines or short shipping, the normal determination of the price of wheat by the ebb and flow of commerce is totally destroyed.
 
 to secure more equitable distribution of the available wheat and flour between their countries, the allied 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 government agents instead of in the normal course Of commerce. Therefore, the export price of wheat and flour. and thus the real price, if not controlled. will be sub iect to almost single will of the for eign purchaser
 "3. Tn normal times, American wheat moves largely to Europe in the fall rlontha This year, the shortage of shipping necessitates its distribution over the entire year Therefore, there is danger of slut in our warehouse system over considerable period
 A. There are large stocks Of wheat which cannot be drawn upon by the al- lies during the war, but in the events of peace or defeat of the submarines, these would be available and might se- r.ously demoralize the demand for Amer ican wheat.
 s5-It must be clearly understood that the guaranteed minimum price of S2 per bushel for wheat in the food bill does not apply to the 1917 harvest but only to the 1918 harvest and then under condi- tons which must be elaborated. There is, therefore, no determined price for the 1917 harvest
 The result of this situation is that ;.,. entirely broken down unless some eff cient government action is brought into play. either (a) the American producer may face slump in wheat. possibly below his production cost, and (b) the export price of wheat, which ultimately determines the real price, is at the will of single agency. Co Some one must buy the surplus wheat at any given mo- ment and if the surplus passes into spec ulative hands it will be held for higher prices later in the year. (d) With stabil- ized prices, extra hazards are introduced into all distribution links, which must be paid for by the consumer. It must be evident that the United States govern ment can more justly deal with the situa- ton than any of the agencies men toned.
 Therefore, the food administration has determined to take the following course
 First: In order to eliminate specula- ton in wheat and flour, all elevators and mills over 100 barrels daily capacity will be required to take out a government license, and the conditions of this license to be;
 That only reasonable and customary charges shall be made for warehouse service; that no wheat shall be stored for more than 30 days without the approval of the food administration; that certain information as to receipts and shipments shall be supplied regularly The grain exchanges are being asked to suspend all dealings and quotations in future wheat
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