The Washington herald., 1917-07-11
The Wheat Survey.

Inc ECSARC VI -
for it," respecting the domestic wheat
situation, can be commended to every
farmer. every retailer, every con-
sumner, in the nation. It is a safe
formula. After his striking analysis
Of the food problem Is studied from
all angles, it becomes safer than ever.
While Congress shows its caracter-
istic dawdling irresolution in disposing
OF the food bill. Mr.. Hoover reveals
his reasons for pressing the measure
and asking for It's prompt passage. 1t
is within the fact to say they are i'm
perative.
Violent, vicious speculation in food
stocks has been developing in the
United States for the past two years.
Its causes are now clear. There has
been no adequate stabilizing influence
in the world market. The war has
produced all sorts OF unmanageable
fluctuations in price. Demand has
been uncontrolled. The grain trade
has learned timidity, owing to the un-
known, uncharted sweeps of high and
low prices, with the result that 1t
has been thrown into the lap Of spec
ulative interests which have not
scrupled to reap rich harvest
There has been gambling, the most
arrant kind of gambling. in food sup
plies because the grain financial re-
sources were no longer self-sufficient.
The war has smashed all the "cus-
tomary safeguards" that the grain
trade had built up in normal times.
has taken the bottom out of its tradi-
tions Financial stability has van
ished like the summer rain. Buyers
for the belligerent nations have been
inactive one month and prices have
been normal, or less than normal; the
next month a surplus OF tonnage has
been available, foreign buying has
been active. and prices have been shot
sky-high. The work of providing
wheat reserve against these unforsee-
able fluctuations of demand and dis
tribution has fallen upon spectators.
men with financial backing hungry for
big and quick profits. Theh conservative
grain traders refused, or we're unable. |
to have much to do with such a crazy
market The risks were altogether too
great.
The farmer has had little or no
share in this boosting contagIon !
In fact, he has not even been guar
anteed a minimum price sufficient to
warrant him in increasing his crops
from year to year. One of the first
policies Of the Food Administration has
been to fix a minimum price program.
with the purpose of protecting the
farmer against vicious price huctua-
tions. The farmers problem is sim
pie. He has to DISPOSE Of his product |
when it is ready. In like manner the |
consumer has to buy his supplies as
he needs them for his table. Only
the middle man, the speculator, can
hold and manipulate wheat and -four
by discounting the future demand.
Mr.. Hoover proposes nothing less
than that the government purchase !
the ''glut," the surplus of wheat in
other words, take the place of the
speculator. 1t can now control the
price and quantity of export wheat.
1t can easily control the price and
quantity of domestic wheat il Con-
gress but says the word. And the
Food Administrator is within the fact
when he says that if the tendency to |
food speculation is permitted to run
wild. the situation today, bad and
demoralizing as it is to the nation.
is nothing to what it will become
twelve months from now. We are fac
ing an actual wheat crisis. We can
not begin to fulfill the undertakings
we have made with our allies unless
a rule of reason is applied to an in
tolerable condition.