The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1917-08-16
GOVERNMENT Will
CONTROL entire
1917 wheat CROP
FOOD COMMISSION PERFECTS
VAST PLANS TO CONTROL
ALL MARKETS.
FAIR deal INTENDED FOR ALL
WILL FIX PRICES OF WHEAT
AND ESTABLISH BUYING
AGENCIES.

" AAS3 sSAi3 mug uSG 1O-l he Il OOU
administration announced last night
~ its plan for controlling wheat,
ES flour and bread, revealing that
Ine government is prepared to take
over the whole 1917 wheat harvest if
necessary to conserve the supply, OBJ
tain just prices for Americas fighting
forces and their Allies and reduce
costs to the American public.
Establishing of buying agencies at
all the principal terminals, licensing
of elevators and mills, fixing of price
to be considered fair, regulation of the
middleman and of grain exchanges,
with the elimination Of trading in fu-
lures, are the chief features of the
plan. The licensing will begin Sep
TENDER 1.
The minimum price of So for wheat
fixed by Congress does not become eff
fective until next year, but the adj
ministration proposes to exercise
very thorough control over this years
crop through powers conferred under
the Food and Export Control bills.
Wheat Markets Disrupted.
Following is the administration
announcement:
"The disturbance to the worlds
commerce and short supplies has
caused a greater disruption of the
normal markets for wheat than for
any other cereal.
"First-As result of the isolation
of certain of the worlds wheat pro-
ducing countries the normal deter
mination of the price of wheat by
the ebb and flow Of commerce is
totally destroyed.
Danger of Glut.
"Second-In order to control specu-
lation and to secure more equitable
distribution of the available wheat and
-four between their countries, the AL
lied governments have placed the
whole purchase of their supplies in
the hands of one buyer. Also the
European neutrals are now buying
their wheat through single govern
ment agents instead of in the normal
course of commerce. Therefore, the
e, ort price of wheat and flour, and
thus the real price, if not controlled,
will be subject to almost single Will
of the foreign purchaser.
"Third-In normal times, American
wheat moves largely to Europe n the
tall months. This year, the shortage
of shipping necessitates its distribu-
ton over the entire year. Therefore,
there is danger of glut in our
warehouse system over considerable
period.
"Fourth-There are large stocks OF
| wheat which cannot be drawn upon by
the Allies during the war, hut in the
event of peace or defeat of the sub
marines, these would be available and
wheat which cannot be drawn upon by
might seriously demoralize the demand
for American wheat.
"Fifth-It must be clarly under.
stood that the guaranteed minimum
price of 50 per bushel for wheat, SET
out in the food bill, does not apply tt
the 1917 harvest, but only to the 1915
harvest, and then under conditions
which must be elaborated. There is
therefore no determind price for the
1917 harvest. 1885,. .~ss ~
"The result Of this situation is that
the normal price-making machinery is
entirely broken down unless some eff
ficient government action is brought
into play, either, (a) the American
producer may face slump in wheat
possible below his production cost, anf
(b) the export price of wheat which
ultimately determines the real price
is at the will of a single agency. Gel
Someone must buy the surplus wheat
at any given moment and if the sur
plus passed into speculative hands, il
will be held for higher prices later
in the year. (d) With stabilized prizes
| extra hazards are introduced into al
distribution links which must be paiG
for by the consumer. It must be evi.
dent that the United States govern.
ment can more justly deal with the
situation than any of the agencies
mentioned.
Therefore, the food administration
has determined to take the following
course:
"First-In order to eliminate spec
ulation in wheat and flour, all e'o-va-
tors and mills over 100 barrels dpily
capacity will be required to take c,'t
government license, and the condi-
tons of this license to be:
HThaf op1u rooconob1o onJ ,,,e4or,