Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1917-08-17
Will Maintain Wheat at $500 by
Buying When Price Says and
Selling When It Goes Up 4
WILL PREVENT GAMBLING
Grain Will Be Resold for Export in
Only Such Quantities as Can Be
= Spared

The Food administration an
nounced Monday it's plan for con-
trolling wheat, flour and bread, re-
vealing that the government is pre-
pared to take over the whole 1917
wheat harvest if necessary to con-
serve the supply, obtain just prices
for Americas fighting forces and
their Allies and reduce costs to the
American public.
Establishing of buying agencies at
all the principal terminals, licensing
of elevators and mills, fixing of
price to be considered fair, regula-
tion of the middleman and of grain
exchanges, with the elimination of
trading in futures, are the chief fea-
lures of the plan. The licensing will
begin September 1.
The minimum price of 50 for wheat
fixed by Congress does not become
effective until next year, but the ad-
ministration proposes to exercise a
Isvery thorough control over this years
crop through powers conferred under
the Food and Export Control bills.
Following is the administrations
announcement:
''The disturbance to the worlds
commerce and short supplies has
caused a greater disruption of the
normal markets for wheat than for
any other cereal.
"First-As a result of the isola-
ton of certain of the worlds wheat
producing countries the normal de-
termination of the price of wheat by
| ally destroyed.
'Second-=In order to control spe-
culation and to secure more equitable
distribution of the available wheat
and flour beteween 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 govern
ment agents instead of in the normal
course of commerce. Therefore, the
export price of wheat and -four, and
thus the real price, if not controlled,
will be subject to almost a single
will of the foreign purchaser.
''Third-In normal times, Ameri-
can wheat moves largely to Europe
in the fall months. This year, the
shortage of shipping 6ecessitates it's
distribution over the entire year.
Therefore, there is danger of glut
in our warehouse system over a con-
siderable period.
"Fourth-There are large stocks
of wheat which cannot be drawn up
on by the Allies during the war, but
in the event of peace or defeat of the
submarines, these would be available
and might seriously demoraIize the
demand for American wheat.
''Fifth-It must be clearly under
stood that the garanteed minimum
price of 50 per bushel for wheat, set
out in the food bill, does not apply
to the 1917 harvest, but only to the
1913 harvest, and then under con-
ditions which must be elaborated.
There is therefore no determined
price for the 1917 harvest.
SURPLUS MUST BE GUARDED
The result of this situation is that
the normal price-making machinery
is entirely broken down unless some
efficient government action is
brought into play, either, (a) the
American producer may face slump
in wheat, possible below his produc-
tion cost, and (b) the export price
= of wheat which ultimately deter
mines the real price, is at the will
of single agency, (c) Someone
must buy the surplus wheat at any
given moment and if the surplus
passed into speculative hands, it will
be held for higher prices later in
the year. (d) With stabilized prices,
\ extra hazards are introduced into all
distribution links which must be paid
for by the consumer. 1t must be
evident that the United States gov
ernment can more justly deal with
the situation than any of the agencies
mentioned.
REMEDIES DETERMINED
Therefore, the food administra-
tion has determined to take the fol-
lowing course:
"First-In order to eliminate spec
uIation in wheat and -four, all eleva-
tors and mills over 100 barrels daily
capacity will be required to take out
a government license, and the condi-
tions of this license to be:
"That only reasonable and custom
ary charges shall be made for wares