The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1917-08-28
How Government
The Supply and
Food Administrator Explains
the Difficulties That Have
Arisen and Makes Known Its
Plans to Overcome Them.
THE food administration has an
nounced its plans as to the con

It's pans as TO the con
troll of wheat. 6our and bread.
The disturbance to the worlds com
merce and short supplies has caused a
greater disruption of the normal mar
kets for wheat than any other cereal.
First.-As a result Of the isolation of
certain Of the worlds wheat produc-
ing countries by either belllgerent lines
or short shipping the normal determina
ton OF the price OF wheat by the ebb
and flow OF Is totally de
stroyed.
Second.-In order to control specula-
ton and to secure more equitable dis
tribution of the available wheat and
-four between their countries the allied
governments have placed the whole
purchase OF their supplies In the hands
Of N buyer. Also the European neu-
trails are nov buying their wheat
through single government agents In
stead OF In the normal course Of com
merce. Therefore the export price of
wheat and four-and this Is the real
price--if not controlled will be subject
to almost a single viii OF the foreign
purchaser.
Third.-1n normal times American
wheat moves largely to Europe In the
fall months. This year the shortage
Of shipping necessitates its distribution
over the entire year. Therefore there
Is danger of a glut In our warehouse
system over a considerable period.
Fourth.-There are large stocks of
wheat which cannot be drawn upon
by the allies during the war. but I'm the
event OF peace or defeat of the subma-
rines these would be available and
might seriously demoralize the demand
for American wheat.
Ftfth.-It must be clearly understood
that the guaranteed minimum price of
81 per bushel for wheat. set out In the
food bin, does not apply to the 1917
harvest, but only TO the 1918 harvest.
and then under conditions which must
be elaborated. There Ia therefore no
determined price for the 1917 harvest.
Must Regulate the Price.
The result OF this situation is that
the normal price making machinery Is
entirely broken down unless some Ell.
Client government action IL brought
into play. Either (aD the American pro-
Queer may face a slump I'm wheat, pos
sibly below his production cost. and (bl
the export price OF wheat, which ulu-
mately determines the real price, Is at
the viii of a single agency. (c) Some
one must buy the surplus wheat at any
given moment, and II the surplus
passes into speculative hands Ii will
be held for higher prices later In the
year Cd With stabilized prices, extra
hazards are introduced into all dis
tribution links. which must be paid
for by the Ii must be EVIL
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 specula-
ton In wheat and -four. all elevators
and mills of over 100 barrels daily ca
pacity will be required to ia out a
government license, the conditions Of
this license to be that only reason
able 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 administration and that GER
tain Information as to receipts and
shipments shall be supplied regularly.
The grain exchanges are being asked
to suspend all dealings and quotations
In future wheat. These regulations
will come into force Sept. 1.
While farmers cooperative elevators
are excepted by the food bin. this. how
ever, applies only to mutual concerns
and not to stock companies. and, In any
event, under the advantages OF joining
the plan none are likely to stand out.
To Open Agencies at Terminals.
In substitution Of the broken down
marketing machinery the food admin
istration proposes to open agencies for
the purchase of all wheat at the prin-
cipal terminals, carrying on its trans
actions with the usual dealers, and 1t Is
prepared to take the whole harvest If
necessary I'm order to maintain a fair
price and will resell wheat for export
In such quantities as we can afford to
part with In protection Of our W PEG
pie, on one hand, and to sell, on the
other, to the millers for domestic on
sumption. The administration will
make no charge except a nominal per
centage to cover costs Of the opera
ton. and arrangements will be made
which viii assure the government
against loss.
In order hat nothing shall be left to
mischarge we are setting up a properly
constituted and independent auditing
committee, which will check all trans
actions at every point
The food administration, under these
arrangements, would have a large in