Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-08-31
Approved by Wilson.

uiiuei TIE CoulIOl VI Tue loOu duulluI-
stration.
Il have appointed committee to de-
termine fair price to be paid in gov
eminent purchases. The price now rec
omme ended by that committee-$2.20
per bushel at Chicago for the basic
grade-,will be rigidly adhered to by
the food administration.
Hopes to Stabilize Price.
1T is the hope and the expectation
Of the food administration and my
own also that this step will at once
stabilize and keep within moderate
bounds the price of wheat for all tran
sactions turnout the present crop year,
and. in consequence the prices of -four
and bread also. The food act has
given lars powers for the control OF
storage and exchange operations and
these powers will be fully exercised.
An inevitable consequence will be -
financial dealings can not follow tns44
usual course.
Believed Fair Price.
Whatever the advantage and disad-
vantages Of the ordinary machinery Of
trade. 1t can not function well under
such disturbed and abnorma! condi-
tons as now exist. In its place the
food administration now fixes for it's
purchases a fair price, as recommend
ed unanimously by a committee repre-
sentative of all interests and all sec
tons, and believes that thereby 1t will
eliminate speculation. make possible
the conduct of every operation in the
full Light OF day, maintain the publicly
stated price for ali, and thru economies
made possible by Sterilization control
the position Of consumers also.
Mr.. Hoover, at his express wish, has
taken no part In the deliberations Of
the committee on whose recommends
ton determine the governments fair
price, nor has he in any way intimat-
ed an opinion regarding that price.
Woodrow Wilson"
Report to President.
The report of the committee to the
president is as follows:
ITO the president Of the United
States: This committee has been asked
by you to recommend the price which
the government should pay for the
1917 crop OF wheat. In its delibera-
lions the committee has kept con-
stantly in mind the three following
factors:
First the fact that the United States
is at war.
Second, the need Of encouraging the
producer.
Third, the necessity Of reducing the
cost Of living to the consumer.
The normal laws Of supply and de-
mand have been violently interfered
with and congress has undertaken to
Offset this disturbance by comforting
extraordinary powers upon the pres:-
dent to stabilize prices. Each Of the
foregoing factors grows out OF condi-
tions which have received the careful
attention of the committee.
Chief among them are:
'The wheat yield in great and inn
portant section Of the country has this
year been below the normal; that over
against this situation is the crying
need among the whole body Of the
population, especially the wage earn
ers, that the rising tide OF costs shall
be stayed and reduced as rapidly as
possible consistent with the welfare Of
the producer; that the government is
at present ime engaged In the great
task of reducing and stabilizing costs
of other staple commodities; that the
wheat of the world is abundant for its
needs even disregarding the stores In
Russia, but because Of lack Of shipping
and war conditions the burden Of sup
plying wheat to the allies and to neu-
trail nations rests for the time being
upon the United States and Canada
Considered 1918 Crop.
your committee has also considered
the fact that the government price for
the 1917 wheat crop Is in effect, con-
tinuing guaranty until the minimum
price guaranteed by congress for thS
crop Of 1918 goes into effect Gully 1
1879 It has considered the relation Of
the 1918 minimum price guaranty to
the price here recommended. It has
also considered the effect which an
early termination of the war would
have upon the wheat markets Of the
world.
In reaching it's conclusions the COM
mittee> has been guided by the prin-
ciples you have announced-thata fair
price should be based upon the cost Of
production OF the entire country, plus
a reasonable profit. We have relied
upon the cost estimates for the crop
of 1917 furnished by the United States
department of agriculture, checked by
the results Of our Independent inves-
legations and the evidence submitted
to the committee by producers and
their representatives.
Different Grades.
THE committee has considered the