New Britain herald., 1917-07-11
HOOVER PLEADS FOR
 FOOD BILL PASSAGE
Believes Farmer and Consuming
 Public in Great Danger
Washington, July 11.-A report on

the 1OOd situation prepared for Presi- dent Wilson by Herbert C. Hoover holding that both the farmer and the consuming public are suffering while 1000 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 govern ment action is immediately taken. the report says, the farmers will face a slump in wheat prices and consumers will be caught in a situation even more serious than that which already is resulting in 'actual undernourish- lhent m the great consuming cen tres. The speculator, it is said, is talk ing a large part of the prices now paid by consumers
 We are practically helpless to safe guard either the farmer or the con- sumer, concludes Mr. Hoover, until the pending legislation is passed"
 The report, in the form of letter to the president, was issued through the pubnc information committee with the statement that publicity was given 1t "in order that the country may know how serious and far reaching the consequences may be both to the farmers of the country and to the consumers, if the delay in passing the pending food legislation continues"
 Text of Letter.
 No comment by the president &C., companled the report although he has more than once demonstrated his inn patience over the repeated delays in congress winch have kept the entire food control program in a state of un- certainty for weeks. MT. Hoover's let ter follows:
 Dear MT. President-In response to your request I send you herewith the following notes compiled by my self and my associates on the present situation with regard to wheat
 'F'irst-The 1917 harvest promises to yield 6TS OO0,, ,0O0 bushels. The nor- mal internal consumption and seed requirements (assuming a carry-over of same volume in 1918 as in 191O amounts to about 6OO,OOO,OOO bushels thus leaving theoretical export bal ance of 7S,000,000 bushels. The con- servation measures are already having a marked effect and it is not too much to hope that the national saving may be S0.0OO,O0O to 100, 100000 bushels, and therefore the export balance in creased to, say, 15S,00O,0O to 180.- 900, 1000 bushels.
 "2. The experience this year in the rampant speculation, eXtOrtiOnate e profits and the prospect of even mar rower supplies than the 1916 harvest and carrying must cause the deepest anxiety No better proof of the hard ship worked upon our people during the past year need be adduced than the recitation of the fact that the producer received an average of $1.15 a bushel for the 1916 harvest; yet wheat has been as high $3.25 at Chicago. and the price of flour has been from time to time based upon this Speculative price of wheat, so that through one evil cause or another the consumer has suffered from 50 to 100 per cent and the producer has gained nothing.
 Could Eliminate Speculators.
 After much study and investiga tion it has been found that this situa- ton is due not only to rank specula- tion, but more largely to the wide margin of profit demanded by every link in the chain of spectators to in sure them from the great hazards of trade in the widely f1uctuating and dangerous price situations during the year when all normal stabilization
 
 of world trade and war. All these fac tors make 1t vitally necessary to in itiate systematic measures which will absolutely eliminate all possibility of speculation, cure extortionate profits and effect proper distribution and re- strictiOns on exports to a point within our own prOtectiOn These measures cannot he accomplished by punitive prosecutions of evildoers, but only by proper and anticipatorN organization and reputation all along the distribu- tion chain.
 "3. During recent months the allied governments have consolidated their buying in order that they might re- leve the burden of speculation from their own consumers, and as the re- stricted exports to neutrals are but a minor item, the export. price, if not controlled, is subject to the will of the allied buyer, so in a great measure the American producer is left to that buyers judgment and is without voice.
 "Furthermore, 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 a month and relieving a corresponding flow from the farms to the interior terminals. This year, owing to the shortage of shipping, the allied sup plies must proceed over a large period of the year and will not during the fall months apparently average over 20,000,000 to 25.0OO,0OO bushels a month
 We must therefore, expect a glut in our interior terminals during a considerable period. The financial re- sources of the grain trade are probab- 1 lY insufficient to cry this extra load l without the help of spectators, and l moreover the consolidation of prac- 1 tically all foreign buying in the hands of the allied buyer has further tended |