The Washington herald., 1917-07-11
HOOVER Sees CRISIS
CONTINUED FROM PAGE ONE.

CONTINUED FROM PAGE ONE.
upon the present situation with re-
gard to wheat.
I. The 1917 harvet promises to
yield $4,000, 900 bushels. The normal
internal consumption and seed re.
quirement (assuming a earry-over of
some volume III 1918 as in 19lO,
amounts to about 6OO,OOO,0OO bushels.
thus leaving a theoretical export bal
ance of 100000 bushels. The conser-
walton measures are already having
marked effect and it is not too much
to hope that the national saving may
be $1,000 600 to 1O0, 0Oe, 900 bushels, and
therefore the export balance increased
to. say 15S, 900. 900, to 1900, 900 bushels.
"2. The experience this year in the
rampant speculation, extortionate
profits and the prospect of even mar
rover supplies than 1916 harvest and
Carry-over, must cause the deepest
anxiety. No better proof OF the hard
ship worked upon our people during
the past year needs be adduced than
the recitation OF the fact that the
producer received an average OF Sl.5l
PEI bushel for the 1915 wheat harvest:
yet wheat has been as high as S3 25
at NhlNdSO anu lllS lSC VI llOuT mas
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 so to 100
per cent, and the producer gained
nothing. After much study and in
vestigation, 1t is evident that this
unbearable increase in the margin be-
tween producer and consumer is due
to not only rank speculation. but more
largely than to the wide margin of
profit demanded by every link in the
chain to insure them from the great
hazards of trade in the widely fluc-
tuatn3 and dangerous price situation
during a year when all normal stabil-
ization has been lost through the in
terruption of world trade and war.
Allies Offset specuIntors.
"3. During recent months the allied
governments have consolidated their
buying into one hand in order that
they might relieve the burden of
speculation from their own consumers
and as the restricted exports to neu-
trails are but a minor item, the export
price, If not controlled, is subject to
the will of the allied buyer. so that
in a great measure the American
producer is left to that buyers judg-
ment and is without voice. Further
more, in normal circumstances,
United States and Canadian wheat is
moved to Europe largely in the fall
months. such shipments averaging
| about 100000 bushels per month and
relieving a corresponding flow from
the farm into the interior terminals
This year, owing to the shOrtage Of
shipping. the allied supplies must pro-
coed over large period of tie year
and will not, during the fall months
apparently average over 2o,H0.G0 to
- OpHOOO bushels per month. We must
therefore, expect a glut in our interior
terminals during a considerable period
II With great reduction in the con-
sumption of wheat bread now FORUM
| ately in progress, the employment of
| our mills must he greatly diminished,
and with the reduction of domestic
| flour production. and our daily feed
| from wheat residues will be greatly
curtailed. Therefore We must induce
| foreign buyers to accept -four instead
| OF wheat
Must Protect Farmer.
"5. In order to do justice to the
producers who have shown great
| patriotism In a special effort TO in
| crease production in 1917 and to
| further stimulate the efforts OF 1918.
| it is absolutely vital that We shall
proterk the farmer from slump in
price this year due to a glut as above