Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-08-25
GOVERNMENT IS
READY TO SEIZE
WHEAT HARVEST
Food Dictator Announces That
. Extreme Measures Will Be
Used If Necessary to Con-
serve Supply and Obtain
Just Price

= WASHINGTON. D. C.. Aug. l.. -
The food administration announced
tonight it's plan for controlling wheat,
flour and bread. revealing that the
government IS prepared TO take over
ihe who Ia 1917 wheat harvest II nece6-
sary to conserve the supply, obtain
jrst 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 middleman and OF grain ex-
changes, with the elimination Of trad
ing in futures are the chief features Of
the plan The licensing viii begin
September !. 49,.
The minimum price OF 81; for wheat
fixed by Congress docs not become
effective until next year, bat the adj
ministration' proposes to exercise a
very thorough control over this years
crop through powers conferred under
the food and export control bills.
Following is the administrations
announcement. ~ 8
The disturbance to the worlds com.
merce and short supplies have caus
ed greater disruption Of the normal
markets for wheat than any. other ce-
real. -
i. As a result Of the isolation Of
certain of the worlds wheat-produc-
In countries by either bellgerent
lines or short shipping. the normal de-
Termination Of the price Of wheat by
the ebb and flow OF commerce IL total
~ destroyed. =.
2. In order to control speculation
and to secure more equitable distri-
button Of the available wheat and
flour between their countries, the al
lied governments have placed the
whole purchase OF their supplies in the
hands Of one buyer Also the Euro
pean neutrals are now buying their
wheat through single government
agents instead Of In the normal course
Of commerce. Therefore, the export
ffice OF wheat and flour, and thus the
real price, II not controlled, will be
subject to almost q single win OF the
foreign purchaser - .
8. In normal times tAmerican
wheat moves largely to Europe in the
fall months, This year the shortage
OF shipping necessities Its distribu-
ton over the entire year Therefore,
there II danger Of u glut In our ware
house system over q ccnsiderable pc
Rod.
4. There are large stocks of wheat
which cannot be drawn upon by the
allies during the var; but In the
event or peace,or defeat cf the subma-
rines, thesk would be Available and
might seriously demoralize the de-
mands for American wheat
s. 1t must be clearly understood
that the guaranteed minimum price Of
. 81 per bushel for wheat set out In the
food bill, does not apply to the 1917
harvest, but only the 1913 harvest
and then under conditions which must
be elaborated. There Is, therefore,
no determined price for the 1917 har.
vest.
The result Of this situation is that
the normal priee-making machinery
Is entirely broken down unless some
efficient government action is
brought into play, either lal the
American producer may face slump
IN wheat, possibly below his produc.
ton cost, and Oh the export price Of
wheat. which ultimately determines
The real price. is at the will Of the
Administration