Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-08-13
Wheat, Flour and Bread
Handling Worked Outin
View of War Time
Conditions


are specific and comprehensive They
have been worked out fully. in view of
the disrupting and disturbing condi-
tions of the European war, and the
part this country still has to play They
provide:
First. for the vigorous prosecution
of all persons who hold more wheat
or flour than is required in their nor
NAL business.
Second. for the maintenance Of a fair
price throughout the country, by seiz-
ing. II necessary. the entire 1917 har-
vest. and determining the cost to the
! consumer.
Third. for food administration
agencies at the principal wheat termi-
nails throughout the country.
Fourth. for the restriction of storage
to thirty days. unless such permit is
given by the food administration.
Fifth, for the elimination of specu-
lation by compelling all mills and ele-
vators with more than 100 barrels
daily capacity to take out govern
ment license. The regulations will go
into effect on September /.
WILL. MEAN STABILIZED
PRICES FOR BREAD
Mr.. Hoover believes that by rigid ap-
| plication of the regulations the price O. [
wheat can be established throughout
the year. With the price OF wheat
stabilized. 1t is believed that the price
of -four will conform, and thus a stabil-
lied price OF bread will be maintained.
In announcing his plans, Mr.. Hoover
says:
The disturbance to the worlds COM
merce and short supply has caused a
| greater nf ,n
kets for wheat than any other cereal.
AS resul. of the isolation of certain
Of the worlds wheat-producing coun-
| tries by either belligerent lines or
short shipping. the normal determine
ton OF the price OF wheat by the ebb
and flow OF commerce Is totally de-
| stroyed.
In order to control speculation and
obtain more equal distribution of the
| available wheat and flour between their
countries the allied gov ernments have
placed the whole purchase of their sun
| plies in the hands OF one buyer Also.
the European neutrals are now buyine.
their wheat through single govern
| ment agents. instead Of in the norma l
course of commerce. Therefore. the
export price of wheat and flour, and
thus the real price. IL not controlled.
|
| OF foreign purchasers.
I'm normal times American wheat
moves largely to Europe in the fall
months. This year. the shortage OF
| shipping necessitates it's distribution
over the entire year. Therefore, there
| is danger of q glut in our warehouse
system over considerable period.
| Ihere 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 submarines these
would be available. and might serious
| ly demoraliZe the demand for American n
wheat
1T must be clearly understood that
| the guaranteed minimum price of 81
per bushel for wheat set out in the
food bill does not apply to the 1917
harvest, but only to the 1918 harvest,
and then under conditions which must
be elaborated. There is, therefore. no
determined price for the 1917 harvest.
NORMAL PRICE-MAKING
MACHINERY BROKEN DOWN
1T is clearly pointed out that as the
result of this situation the normal
| price making machinery is entirely
| broken down unless some efficient gov
| crnment action is brought into play.
These points are made:
| "First. The American producer may
face slump in wheat. possibly below
his production cost.
Second. The export price of wheat,
which ultimately determines the real
price, is at the will of a single agency.
Third. Some one must buy the sur
plus wheat at any given moment, and
If the surplus passes into speculative
| hands 1t will be held for higher prices
later in the year.
Fourth. With stabilized prices, extra
hazards arc introduced into all dis
tribution links, which must be paid
for by the consumer. 1t must be evil
dent that the United States govern
ment can more justly deal with tho
situation than any of the agencies
| mentioned.
Therefore. the food administration
has determined TO take the following
course:
I'm order to eliminate speculation in
wheat and -four all elevators and mills
over 100 barrels daily capacity will be
required to take out a government
license. and the conditions of this
license must be:
THAT only reasonable and customary
| CHdTBeS Snaii oc maue Tor warehouse
service: that no wheat shall be stored
for more than thirty days without tho
approval of the food administrator:
that certain information as to receipts
| and shipments shall be supplied reGu-
larly. Grain exchanges are being
asked TO suspend all dealings and
quotations In future wheat These
| regulations will co,he into force Sep
tembcr ], and the licenses will be pre-
pared this week. While farmer CO.
operative elevators are excepted by the
food bill. this, however. only applies
to mutual concerns. and not to stock
companies. and, In any event. under
the advantages OF joining the plan,
mono are likely to stand out.
I'm Substitution OF the broken
Continued on Second Pago)