Bisbee daily review., 1917-07-11

pr0DaDie gut.
 A. With reduction in the price of wheat bread now fortunately in pro- gress the employment of our mills must be greatly diminished and with the reduction of domestic flour pro duction our daily food from wheat re- sidues will be greatly curtailed. There fore we must induce foreign buyers to accept flour instead of wheat.
 Must Protect Farmer.
 "5. In order to do justice to the producers who have shown great pa triotism in special effort to increase production in 1917 and to further stim- ulate the efforts of 1918, it is absolute ly vital that we shall protect the far mer from a slump in prices this year due to glut as above or from the un- controlled decisions of any one buyer. am informed that most of the allied countries have fixed the price of wheat to the farmer at $1.S0 per bushel and many of their producers believe that as allies it is our duty to furnish wheat at a price which delivered to them will not exceed their domestic price. in other words. about S1.50 per tushel. Chicago. Neither their respon- sible officials nor I hold this view, be- cause I consider that the stimulation to production, if no other reason, is in the long run in the interest of the al lies. There is, however, limit to prices which so trespass upon the rights of the consumer as to defeat it's own object through strikes, raises in wages, and social disturbances in the country. It is with the view to finding solution to these problems, filled with the greatest dangers to both our producers and consumers that legislation has been proposed and pressed for speedy enactment.
 "6. The proposed food administra- tion has conferred with many hun dreds of patriotic men engaged in pro duction and distribution and has in vestigated the condition of the con sumers in many centers as well. Many plans have been tentatively put for ward and abandoned and others have developed, but in any case none has or can be settled until legislation has been completed Three facts stand out plainly enough from our investi' cations: First. that in this situation the farmer will need protection as to | the price. of wheat; and, second. that large masses of people in the consum ing centers are being actually under nourished today due to the exorbitani cost of living; and that these cond: tions, unless some remedy is found will be largely to repeat themselves in even more vicious form at this time next year: third, the speculator. legiti. mate or vicious, has taken large par: of the money now being paid by the consumer
 "7. It seems to be overlooked in some quarters that the marketing of this years wheat is surrounded with circumstances new to history, and that the old distributing safeguards are torn away by isolation from the reciprocal markets abroad and the ex- tinction of a free export market and free export transportation.
 Price Is Dropping.
 "The harvest has begun to move and from these very causes the price of wheat has begun to drop. and if the farmer is to sell his wheat. either the speculator must return to the mar ket to buy and carry on not only the normal flow from the farmer in excess of domestic and foreign requirements but also the glut due to the restriction upon the outlet to the latter. He must necessarily charge his toll to the pro ducer and the consumer and this lat ter probably upon a more extensive scale than last year, as his risks will be greater.
 i Practically. the export buyer must ' from the sole outlook of his owr | clients and in execution of his duty he ] will in all normal circumstances fol low the market down by buying only his time-tO-time requirements. as he cannot be expected to carry the load | Oi oui uplutSllC dCCufuuldllOn.
 U. s. May Fix Price.
 "Or on the other hand. the govern ment must buy the surplus wheat at some reasonable minimum price fol lowing the normal domestic trade Of | the country to proceed with proper safeguard against speculation. Nor would the services of the speculator be necessary for the government should be able to stabilize the price ol wheat without his assistance and can control the price and quantity of ex port wheat. We are practically help less to safeguard either the farmer or the consumer until the pending legisla tion is passed.
 ''I remain.
 Your obedient servant.
 HER RERT C HOOVER