Charlevoix county herald., 1917-08-24
How Government
The Supply and
Food Administration Explains
the Difficulties That : Have
ArissalanA Makes Known Id
Plans to -0vvvsome Them.

IM0e 70 UvUSG0me lnem.
oss~~~ss~~s~~~~~~~~
TINE food administration has an
i nouncsd its plans as to- ths con-
troll OF wheat, -four and bread.
the tisturbsnce to the worlds CON-
msrce and short supplies has caused a
greater. disruption Of the normal mar
ksts for wheat than any other cereal
'FFirst.%-As o result Of the isolation OF
rertain Of the worlds wheat produc-
ing countries by either belligersnt lines
OF short shipping the normai determine
ton Of the price OF wheat by the ebb
and dow OF commerce IL totally de-
strsyed.
;. Second.--Inr order to control speeula-
tioh and tie secure more equitable dis
trtbution Of the available wheat and
] asur between their countries the allied
governments have placed. the whole
purchase Of their supplies In the hands
OF one buyer. Also the European neu-
trails are now buying their wheat
through single government agents in
stead of In the normal course of COM
merce Therefore the export price Of
wheat and four-and this Is the real
prfce--if not controlled will be subject
to almost single will Of the foreign
purchaser.
Third.-In normal tunes 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 a glut In our warehouse
system over a considerable period.
Fourth.-There are large stocks of
wheat which cannot be drawn upon
by the allies during the war, but I'm the
event Of peace or defeat of the subma-
rines these would be available and
might seriously demOralize the demand
for American wheat.
Fifth.-It must be clearly understood
50 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.
Must Regulate the Price.
The result of this situation Is that
the normal price making machinery Is
h~a 1AfA-
Client government action Is brought
into play. Either (a) the American pro-
Queer. may face slump In wheat, pos
sibly below his production cost, and (b)
the export price Of wheat, which ult-
mately determines the real price, Is at
the will Of single agency. (c) Some
one must buy the surplus wheat at any
given moment, and II the surplus
passes into speculative hands 1t will
be held for higher prices later In the
year. ID With stabilized prices, extra
hazards are introduced into all dis
tribution links which must be paid
for by the consumer. 1t must be evil
dent that the United States govern
fnent can more Justly deal with the
situation than any of the agencies
mentioned.
Therefore the food administration
has determined to take the following
course:
First, In order to eliminate specula-
tion In wheat and -four, all elevators
and mills of over 100 barrels daily Ca
pacity will be required to take out
government license, the conditions Of
this license to be that only reason
able and customary charges shall be
made for warehouse service, that no
wheat shall be stored for more than
thirty days without the approval Of
the food administration and that Ger
tain 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. These regulations
will rome into force Sept. l.
While farmers cooperative elevators
are excepted by the food bill. this, how
ever, applies only to mutual concerns
and not to stock companies, and, In any
event, under the advantages OF Joining
the plan none are likely to stand out.
. To Open Agencies ct Terminals.
In substitution of the broken down
marketing machinery the food admin
,istrstion proposes to open agencies for
the purchase Of ali wheat at the prtn-
cipal terminals. carrying on its trans
actions with the usual dealers, and 1t Is
prepared to take the whole harvest II
necessary In order TO maintain a fair
price and will resell wheat for export
In such quantities az we can AFFORD to
part with In protection Of our own peo-
pie, on one hand, and to sell. on the
other, TO the millers for domestic con-
sumption. The administration will
make no charge except nominal per
scentage to cover costs OF the opera
zion, and arrangements will be made
which will assure the government
against loss.
In order that nothing shall be left to
misdhsrge we are setting up properly
constituted and independent auditing
committee. which will check all trans
actions at every point.