New-York tribune., 1917-07-11
Gamblers Win,
Public Loses,
Says Hoover
Producers and Consumers
Suffer by Lack of Food
Control, He Tells Wilson
Market Price of Flour
Fictitious, He Says
Close Economy viii Add
l00,000,000 Bushels of
Wheat for Allies

consuming public are suffering, while
food spectators make unearned profits
from the delay in enactment Of food
control legislation, was given out to-
night at the White House.
Unless strong and efficient govern
ment action is Immediately taken, The
food administration reported, the farm
ers will face a slump in wheat prices
and consumers will be caught in stu
alton even more serious than that
which is resulting in actual under
nourishment" in the great consuming
centres. The speculator, II is declared,
is taking large part of the prices now
paid by consumers.
1--WE are practically helpless to safe
guard either the farmer or the con-
sumer," concludes Mr.. Hoover, until
the pending legislation is passed"
Report in Form of a Letter
The report, in'the form of a letter'to
the President. was issued through the
public information committee. with the
statement that publicity was given 1t
"in order that the country may know
how serious and farreaching the con-
sequences may be, both TO the farmers
of the country and TO the consumers.
of the present delays in passing the
pending food legislation"
No comment by the President accom-
panied the report, although he has more
than once demonstrated his impatience
ever the delays in Congress which have
kept the entire food control programme
in a state Of uncertainty for weeks.
Mr.. Hoover's letter follows:
an response to your request, send
you herewith the following notes com
piled By myself and my associates upon
the present situation with regard to
" heat
"The 1917 harvest promises to yield
678, 900 900 bushels. The normal in
ternal consumption and seed require
ment assuming a carry-over OF the
same volume in 1918 as in 1910
amounts to about 600,000,000 bushels,
thus leaving a theoretical EXPORT bal
ance Of 7S.000.000 bushels. The con-
s.rvation measures are already having
a marked effect. and 1t is not too much
TO hope that the national saving may
be 80,000000 to 100,000,000 bushels, and
the export balance increased
tc, say, 15s,000,000 to 1Se,00O'0OO
bushels.
Consumer Hard Hit
"The experience this year in the
rampant speculation, extortionate
profits and the prospect OF even mar
rover supplies than the 1916 harvest
and carry-over must cause the deepest
anxiety. No better proof OF the hard
ship worked upon our people during
he last year need be adduced than the
lecitation OF the fact that the pro-
ducer received an average OF Sl.bl per
bushel for the 1916 wheat harvest; yet
wheat has been as high as S3.25 at Chi
cago and the price Of -four has been
from time TO time based upon this
3 speculative price of wheat, so that
through one evil cause or another the
consumer has suffered from 80 to 100
pel cent and the producer has gained
nothing.
After much study and investigation
the condition of the producer and con-
sumer is due not only 70 rank specula-
ton, but more largely 10 the wide mar
gin of profit demanded by every link
In the chain 10 insure them from the
great hazards of trade in the widely
fuctuating and dangerous price stu
alton during a year when all normal
stabilizstion has been lost through the
of world trade and war
"All these factors render 10 vitally
necessary 10 initiate systematic meas
ures which will absolutely eliminate
all possibility of speculation. cure ex-
tortionate profits and effect proper dis-
tribution and restrictions on exports
10 a point within our own protection.
These measures cannot be accomplished
bv punitive prosecutions of evil-doers,
but only by proper and anticipatory or
canization and regulation all along the
distribution chain.
"During recent months the Allied gov
ernments have consolidated their buy
ing into one hand IN order that they
might relieve the burden OF speculation
from their own consumers; and as the
restricted exports 70 neutrals are but
y minor item. the export price, II not
is subject 10 the viii OF the
Allied buyer, so that in great meas
ure the American producer is left 20
that buyers judgment and is without
voice. .
"Furthcrmorc, in normal circum-
stances. United States and Canadian
wheat is moved TO Europe largely IN
the fall months, such shipments aver
aging about forty million bushels per
nopth. relieving a corresponding now
from the farms into the interior ter
nninals. This wear, owing 10 the snort
age Of shipping, the Allied supplies
must proceed over large period OF the
wear. and will not during the iall
months arparently average over W.
COO. 600 20 25,O00,00 bushels per month.
ave must, therefore, expect a glut
in our interior terminals during con-
siderable period. The financial re-
sources Of the grain trade are prop
ably insufficient 20 carry TINS ~"
load without the help OF spectators,
and. moreover, the consolidation oI
practically all foreign buying IN the
hands Of the allied buyer mas iurIhet
tended 10 diminish the resources Oh
capital available by putting huihp.I
Of firms out Of business, ana limits
IN. financial capital available in ex-
port trade. .i,,.,;o, !.
.hst unIcss some strong and efficient
on%. .aa.rnment action is Immediately
so,vId sso,,Ied and brought into play, the
h.o, h,oc,ican producer will face a slump IN
- :, hoa, ," and in any event, the price OF
W., wheat will be dictated by
.hpyj, .;Ipoja agency and the American CON
s,nn ,,,ssr wlll be faced with the situation
,bst large part Of the essential
bpesdstuHs has passed into the hahds ho,
of speculatoIs; for some one mus puS
and hold not only the norma 1.n;. nov NOV, ''O'
tbc former but this probable gut
"Wlth great reduction IN the oen