New Britain herald., 1917-08-13

 might seriously demoralize the de- mand for American wheat.
 5-It must be clearly understood that the guaranteed minimum price of $2 per bushel for wheat. set out in the food bill, does not apply to the 1917 harvest. but only to the 1918 harvest. and then under conditions which must be elaborated. There is, therefore, no determined price for the 1917 harvest.
 The result of this situation is that the normal price making machinery is entirely broken down. Unless some efficient government action Is brought to play, (a) the American producer may face a slump in wheat, possibly below his production cost; (b) the export price of wheat, which ultimate ly determines the real price, is at the will of a single agency; Co some one may buy the surplus wheat at any given moment, and if the surplus passes into speculative hands 1t will be held for higher prices later in the year; (d) with stabilized prices. ex- tra hazards are introduced into all distribution links, which must be paid for by the consumer.
 Solution of the Problem.
 Tt must be evident that the Unit ed States government can more justly deal with the situation than any of the agencies mentioned. Therefore the food administration has deter mined to take the following course:
 "First-In order to eliminate specu- lation in wheat and flour, all elevators and mills over 100 barrels daily ca pacity will be required to take out a government license. the conditions of this license to be: That only req sonable and customary charges shall be made for warehouse service; that no wheat shall be stored for more than thirty days without the approval of the food administrations; that cer- tain information as to receipts and shipments shall be supplied regularly.
 "The grain exchanges are being asked to suspend all dealings and regulations will come into force Sept. 1. and the licenses will be prepared this week.
 While farmers cooperative eleva. tors are expected by the food bill, this, however, only applies to mutual concerns, and not to stock companies and in any event, under the ad. vantages of joining the plan, none are likely to stand out.
 In substitution of the broken-down machinery, the food ad proposes to open at the principle terminals, carrying on it's transactions with the usual dealers. and Is prepared to take the whole harvest if necessary in order to main tain fair price; and will resell wheat for export in such quantities as we can afford to part with in protection of our own people. on one hand, and to sell, on the other, to the millers for domestic consumption.
 The administration will make no charge, except a nominal percentage to cover costs of the operation, and ar engagements will be made which will assure the government against loss.
 In order that nothing shall be left to mischance, we are setting up a properly constituted and independent auditing committee, which will check Ill transactions at every point.
 The food administration, under ,hese arrangements, would have a arge influence in effecting the price of wheat. With view to determining a fair proce, the president has approved the appointment of a committee to be selected from representatives of the producing sections and consuming clements in community.
 Garfield Head of Committee.
 This committee will be assembled under the chairmanship of President Garfield of Williams college, and it will be the duty of this committee to determine a fair price for the 1917 harvest. Upon the determination of this fair basis, 1t is the intention of the food administration to use every given to it under the bill and the control of exports to effect the of this fair basis through out the whole of the 1917 harvest year without change or f1uctuation.
 Tt should thus be clear that it will not be to the advantage of any pro- ducer to hold back his grain in an- ticipation of further advance, for he will do so only at his own cost of star age and interest, and If necessary for the government to buy the entire wheat harvest in order to maintain this fair protection of the producer, we intend to do so.
 Furthermore, the holding of wheat or fouc contracts by persons not en- gagged in the trade, and even when in trade, in larger quantities than is necessary for the ordinary course of their business is unlawful under the act, and such cases will be prosecuted with vigor. And we would advise such holders to hquidate their contracts at once.
 By the above arrangement we be- lieve that we shall stabilize the price of wheat throughout the year; that the hazards of operation due to huc- tuating prices which are imposed upon our milling and distributing community will be eliminated and therefore their business can return to the normal lines and the normal mar gins of profit, and that we shall not