Norwich bulletin., 1917-08-13
PLANS FOR CONTROLLING
 WHEAT, FLOUR AND BREAD
To Obtain Just Prices for Americas Fighting Forces and Their Allies and
 Reduce the Cost to the General Public

Washington, Aug. 12.--The food ad- ministration announced tonight it's plan for controlling wheat, flour and bread, revealing that the government 1 is prepared to take over the whole 1917 wheat harvest if necessary to conserve the supply, obtain just prices for Americas fighting forces and their allies, and reduce costs to the general public in the United States. Establishing of buying agencies at all the principal terminals, licensing Of elevators and mills, fixing of a price to be considered fair regulation of the with the elimination of trading in fu- lures, are the chief features of the plan. The licensing will begin Sept. 1. The minimum price of $2 for wheat fixed by congress does not become ef- fective until next year, but the admin istration proposes to exercise very thorough control over this years crop through powers conferred under the food and export control bills.
 Administrations Announcement.
 Following is the administrations an nouncement:
 "The disturbance to the worlds commerce and short supplies has caused a greater disruption of the nor maj ma ckets for wheat than any other cereal
 As a result of the isolation of certain of the worlds wheat producing countries, by either belligerent lines or short shipping, the normal determina- ton of the price of wheat by the ebb and flow of commerce is totally de- stroyed.
 To Control Speculation.
 "2-In order to control speculation and to secure more equitable distribu- Gon of the available wheat and flour between their countries, the allied gov ernments have placed the whole pur- chase of their supplies in the hands of one buyer. Also the European neu- trals 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 flour, and thus the real price. if not controlled. will be subject to almost a single will of the foreign purchaser.
 "3-In normal times, 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 considera ble period.
 NThere 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 the subma rines seriously demora1ize the demand for American wheat.
 No Guaranteed Minimum Price.
 "5-It must be clearly understood that the guaranteed minimum price of $2 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 the conditions which must be elaborated. There is, there l fore, no determined price for the 1917 l harvest
 The result of this situation Is that | the normal price making machinery is | entirely broken down unless some eff | cient government action is brought | into play, either (a) the American | producer may face a slump in wheat, | possibly below his production cost and | (b) the export price of wheat, which determines the real price, is at the will of a single agency Co | may buy the surplus wheat at any given moment, and if the surplus passes into speculati tive hands it will be held for higher prices later in the year; (d) with stabilized prices extra hazards are introduced into all distri- button links which must be paid by he consumer. It must be evident that he United States government can 1 more justly deal with the situation | han any of the agencies mentioned.
 Course to Be Taken.
 Therefore, the food administration las determined to take the following course:
 ''First-In order to eliminate specu- ation in wheat and four. all elevators md mills over 100 barrels daily ca 9acity will be required to take out a