Bridgeton pioneer., 1917-08-23
How Government
The Supply and
Food Administration Explains
the Difficulties That Have
Arisen and Makes Known Its
Plans to Overcome Them.
TINE food administration has an
4 nounced its plans as to the con-


T>HE food administration has an
nounced its plans as to the con-
troll of wheat, flour and bread.
The disturbance to the worlds COM
xnerce and short supplies has caused a
greater disruption of the normal mar
kpts for wheat than any other cereal.
Efrst-As a result Of the isolation of
certain of the worlds wheat produc-
frg countries by either belligerent lines
or short shipping the normal determina
non of the price of wheat by the ebb
and flow of commerce is totally de-
stroyed
.Second--In order to control specula-
rt1an and to secure more equitable dis
txfbution of the available wheat and
Bour 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.
Efead of in the normal course Of COM
Merce. Therefore the export price of
wheat and four-and this is the real
Wace-if not controlled will be subject
fD almost single will Of the foreign
purchaser.
Thtrd-In normal times American
wheat moves largely to Europe in the
fau months. This year the shortage
nj shipping necessitates its distribution
wver 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
hy the allies during the war, but in the
event Of peace or defeat of the subma
Ffnes these would be available and
might seriously demoralize the demand
for American wheat
sFifth.-It must be clearly understood
tAat the guaranteed minimum price of
s. Fer bushel for wheat, set out in the
food bsl, does not apply to the 1917
harvest, but only to the 1918 harvest.
md then under conditions which must
he 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
4anfarely broken down unless some eff
raent government action is brought
into play. Either (a) the American pro-
dncer may face slump in wheat, pos
'xEhg below his production cost, and (b)
she export price Of wheat, which ulti-
1ately determines the real price, is at
,4he will Of single agency. (c) Some
one must buy the surplus wheat at any
given moment, and If the surplus
passes into speculative hands it will
be held for higher prices later in the
year. (d) With stabilized prices, extra
& hazards are introduced into an dis
sr1bution links which must be paid
1sr by the consumer. 1t must be evi-
= Aent that the United States govern
naent can more justly deal with the
zatnation than any of the agencies
mentioned
Il hClClOlc tut lOOu
&As determined to take the following
course:
i First, in order to eliminate specula-
a-zna in wheat and -four, all elevators
AID mills of over 100 barrels daily ca
gacity will be required to take out
government license, the conditions of
this license to be that only reason
aable and customary charges shall be
.rNsade for warehouse service, that no
wheat shall be stored for more than
1thirty 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
s0 future wheat. These regulations
will come into force Sept. 1.
While farmers cooperative elevators
are excepted by the food bill, this, how
a+sver, applies only to mutual concerns
sIzad not to stock companies, and, in any
event, under the advantages Of joining
the plan none are likely to stand out.
To Open Agencies at Terminals.
In substitution Of the broken down
nparketing machinery the food admin
aktration proposes to open agencies for
khe purchase of all wheat at the prin-
x1paa terminals, carrying on its trans
actions with the usual dealers, and it is
NEepared to take the whole harvest If
necessary in order to maintain q fair
rarice and will resell wheat for export
s.such quantities as we can afford to
isart with in protection of our own peo-
Sshe, Sen one hand, and to sell, on the
's1fheS, te the millers for domestic con-
- sumption. The administration will
nxxke no charge except a nominal per
sosentage to cover costs of the opera
> daoG, and arrangements will be made
(which will assure the government
Rzamst loss.
order that nothing shall be left to
'1seecharge we are setting up properly
NH3mEtituted and independent auditing