The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-09-22
So Wheat for 1918 Guarantees
Against Possible Loss. !
If War Would End, Wheat Drop
to 81, Says Waters.
AUSTRALIA NOW HAS ST WHEAT
Govt Stalking Farmer for a Bill
lion on 1918 Crop.
Already Flour Is Lower; 90
Ounce Loaf in n. Y. for Zoe.

St Paul Sept. 22.-1n an address
before the Producers and Consumers
conference under the auspices of the
Non-Partisan league, in session here,
President H. j. Waters Of the Kansas
Agricultural college, a member of
Hoover's wheat price fixing board de-
Tended the policy of the government
in adjusting the price of wheat. He
stated that while there is no question
but that the farmer would obtain a
much greater price for his wheat
without the government action, still
there is a matter of public welfare
and patriotism at stake. Furthermore
the government has offset the current
disadvantage to the farmer by guar
anteeing a price of 50 for wheat next
year This insures him profit where
as If the war should end before that
time, President Waters predicts,s the
price of wheat would drop to 81 a
bushel. Nevertheless, the farmer
would receive 50 a bushel for his
grain and the government would have
to absorb the loss.
Only One Side for Loyalty.
To-day there is only one side on
which any loyal American may be
found, and that is the side of the stars
and stripes" said President Waters.
"Since we are at war, it is necessary
for us all to make sacrifices, and the
smallest sacrifice any one can make
is the sacrifice of money.
Price fixing is a new business to a
democracy like ours, and it necessar-
lily causes some confusion and some
dissatisfa ction at first, particularly
since it has had to come in year
when the available wheat supply was
the lowest in many years and when
the demand was perhaps the highest
in history.
"The farmer cannot help feeling
that his produce under unrestricted
sale would bring a much higher price
than the government dares to fix. 1t
is TO be be remembered, however, that
the fixed price of s2.2O in Chicago IS
for the entire 1917 crop, and cont1n-
ues in effect until July next, when
the guaranty of not less than 50, fix
ed by congress, becomes operative.
Moreover, while the world is short of
available wheat, there actually exists
a surplus of this crop. Australia has
O reserve of 180,000,000 bushels,
which is being offered at 81 a bushel,
and there is the prospect of an addi-
tional surplus of 100,000,000 bushels
at the coming harvest in that country.
In India there is in sight surplus of
nearly 100, 1000, 00p bushels, and in Ar
gentina of approximately 70,000,000
bushels. If active fighting should
cease, and peace negotiations begin,
these supplies. added to what is OBJ
tainable in Canada and the United
States, would be thrown Immediately
on the market, depressing the price
here, as well as elsewhere, to prob
ably 81 a bushel This does not take
into account the vast stores of wheat
in Russia which cannot be reached in
time to affect the sale of the 1917
crop.
IN Billion Bushels Next Year.
1.-THE government price recently fix
ed, protects the American farmer
against any decline in the wheat mar
ket. While the present guaranty is
based on small crop, and will fur
nish no subsidy to the farmer but will
rather call for a sacrifice on his part
we are likely to have under normal
crop conditions, billion and a quar-
ter bushels next year. Under the gov
for at least 50 a bushel. If the war
should end by the time this wheat
goes upon the market, the govern
ment would have to absorb the loss.
which might be not less than a billion
dollars and could not be less than
$600,000,000. This would mean a
subsidy to wheat production which
would more than counterbalaIace a
loss of 81 bushel on all wheat pro-
duced this year.
The farmer, Furthermore, will feel
much happier over the reduction in
wheat price when he realizes that the
consumers are to derive the benefit
of the sacrifice he is called upon to
make Milling, shipping and grading
processes are definitely regulated BY
the government and these operations
are conducted on fixed scale charges
Under these conditions, the wheat
seller may compute the price of flour
as accurately as does the miller The
profit to the miller is not to exceed 2E
cents barrel and may be considera-
bly, less.
Already the government price OF
wheat is reflected in the price OF
flour. Bakers flour is selling in New
York City for $1O.65 a barrel Ar.
rangements are now being made tt
regulate and control the price OF
bread. A 20-ounce loaf is selling ii
New York for 10 cents. Steps art
thus being taken to insure that nc
commercial group shall turn into