The Barre daily times. (Barre, Vt.) 1897-1959, 1917-07-11
SPECTATORS
THRIVE WHILE
PEOPLE SUFFER
Herbert c. Hoover Declares That Former
Are Making Unearned Profits While
Congress Delays Food Con-
troll Legislation.

Washington, d. c., July ia report
on the food situation prepared for Pres
ident Wilson by Herbert c. Hoover, hold
ing that both the farmer and the con
suming public are suffering while food
spectators make unearned profits from
the delay in enactment of food control
legislation, was given out last night at
the White House.
Unless strong and efficient government
action is Immediately taken, the food
administra tion reported, the farmers viii
face a slump in wheat prices and con-
sumers viii be caught in situation even
more serious than that which already
is resulting in actual under nourish-
ment' in the great consuming eenters.
The speculator, it is declared, is taking
large part OF the prices now paid by
consumers.
Mr.. Hoover's letter follows:
Dear Mr.. President:
"ln response to your request, ! send
you herewith the following notes COM
piled by myself and my assistants upon
the present situation with regard to
wheat.
81. The 1917 harvest promises to yield
67S 100000 bushels. The normal internal
consumption and seed requirement tas-
suming a earry-over OF same volume in
1918 as in 1917 amounts to about 600,
100000 bushels, thus leaving a theoreti
cal export balance of 100000 bushels.
The conservation measures are already
having a marked effect and it is not too
much to hope that the national saving
may be s0,000,000 to l00,000,000 bushels, |
and therefore, the export balance in.
creased to, say l5S,000,000 to 10000, 900 |
bushels.
So The experience this year in the |
rampant speculation, extortionate profits |
and the prospect of even narrower sup
plies than 1916 harvest and carry-over |
must cause the deepest anxiety. No bet
.er pEoof of the hardship worked upon
,ur people during the past year needs be
ldduced than the recitation of the fact
hat the producer received an average of
Il 81 per bushel for the 1916 wheat har-
rest; yet wheat has been as high as 1926
It Chicago and the price of flour has
,een from time to time based upon this
peculative price of wheat, so that
through one evil cause or another the
onsumer has suffered from so to 100 per
ent and the producer gained nothing.
"After much study and investigation,
t is evident that this unbearable in
rease in the margin between producer
nd consumer is due not only TO rank
peculation but more largely to the wide |
iargin of profit demanded by every link {
4 the chain TO insure them from the Z
reat hazards of trade in the widely fluc- I
uating and dangerous price situation {
uring a year when all normal stabiliza- 7
on has been lost through the Interrupt /
on of the world trade and war. All t
lese factors render it vitally necessary
, initiate systematic measures which r
i'll absolutely eliminate all possibility ?
speculation, cure extortionate profits v
nd effect proper distribution and re- n
.rictions on exports to a point within t
1r own protection. These measures can n
,t be accomplished by punitive prose 5
ltions of evildoers, but only by proper L
I'd anticipatory organization and regu- 2
tion all along the distribution chain. d
"3. During recent months the allied q
have consolidated their buy "
q into one hand in order that they {,
ight relieve the burden of speculation Il
ON their own consumers and as the re- :,
ricted exports TO neutrals are but a p
inor item. the export price, if not con Il
oiled. is subject to the will Of the allied m
Iver. so that in a great measure the in
nerican producer is LETT to that buyers L
dgTnent and j. without voice. oi
Furthermore, in normal circumstances pi
1ited states and Canadian wheat i
,ved to Europe largely in the fall e,
,nths. such shipments averaging about AZ
600 600 bushels per month and reliev di
? a corresponding flow from the farms I'd
Ia the interior terminals. This year, ~
ing 70 the shortage Of shipping. the X
iei supplies must proceed over large ~
nod Of TIE year and viii not during a
fConffnues On eighth rsEe1