South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-08-13

ercise a very thorough control over
this years crop through powers con-
ferred under the food and export
control bills.
Administration Plans.
Following is the administration
announcement:
The disturbance to the world 5
commerce and short supplies has
caused a greater disruption Of the
normal markets for wheat than any
other cereal.
Il. As a result Of the isolation OF
certain OF the worlds wheat pro-
ducinR countries, because either bel
ligerent lines or short shipping, the
normal determination OF the price of
wheat by the ebb and flow of com
merce is totally considered.
80 In order TO control specula-
ton. and to secure more equita ble
distribution of the available wheat
and flour between 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 nor
NAL course OF commerce. Therefore
the export price of wheat and tioul
and thus in the real price, # not
controlled. will be subject to almOsi
a single will of the foreign pur-
chaserS.
Danger. of Wheat Glut.
"G. In normal times, American
wheat moves largely to Europe in
the fall months. This year. the
shortage of shipping necessitates ii:
distribution over the entire year
| Therefore, there is danger of a glu'
/ in our warehouse system over "A con
! siderable period.
-. There are large stocks Of
| wheat which cannot be drawn upOT
| by the allies during the war. but IL
/ the event of peace or defeat of the
submarines. these would be available
and might seriously demOralize the
demand for American wheat
IS. 1t must be clearly understood
that the guaranteed minimum price
of 81 per bushel for wheat, set GU
in the food bill, does not apply L
| the 1917 harvest. but only TO thu
1918 harvest. and then under con
ditions which must be modified
/ There is. therefore, no determined
price for the 1917 harvest.
The result of this situation is
/ that the normal price-making ma
| chinery is entirely broken down un'
| less some efficient government ac
! ton is brought i'm play, either "a
! the American producer may face &
slump in wheat, possibly below hi
! production cost and CO. the eXpor
price Of wheat, which ultimately de
termines the real price. is at the vii
Of a single agency. Co Some one
must buy the surplus wheat at any
given moment and if the surplus
passes into speculative hands it vii
be held for higher prices later in
the year. CD With stabilized prices
extra hazards are introduced into al
distribution links which must be-
paid for by the consumer. II mus
be evident that the United state!
government can more justly dea
with the situation than any Of tht
agencies mentioned
AbAIHt W bAAD"Nhs
Therefore, the food administra
ton has determined 10 take the fol
! lowing course:
"First-In order TO eliminate
| speculation in wheat and flour. al
! elevators and mills over 100 barrel:
daily capacity. will be required tC
take out a government license and
! the conditions of this license 10 be
That only reasonable and Gus
| tomary charges shall be made fol
| warehouse service: that no whea'
shall be stored for more than 81
days without the approval Of the
| food administration; that certain in
/ formation as 10 receipts and ship
ments shall be supplied regularly
| The grain exchanges are being asked
10 suspend all dealings and quota
tions in future wheat These regu-
| lations will come into force Sept.
and the licenses will be prepared
: this week.
while farmers cooperative ele
vators are excepted by the food bill
this. however, only applies 70 mutua
/ concerns and not 20 stock compan
I les. ana IN any event. uAuNi the az
I vantages Of joining the plan, none
are likely 10 stand out
In substitution Of the broker
/ down marketing machinery, The
I food administration proposes 10 OpeT
/ agencies for the purchase Of al
wheat at the principal terminals
carrying on its transactions with th'
usual dealers, and is prepared q
take the whole harvest If necessary
Y in order TO maintain fair price
/ and Will resell wheat for export II
/ such quantities as we can AFFORD q
part with in protection Of our OWL
people on one hand and 10 sell OF
/ the other TO the millers for domestic
consumption The administrator
I will make no charge except nom
/ inal percentage 10 cover costs OF th'
/ operation and arrangements will b'
made which viii assure the govern
ment against loss
In order that nothing shall b'