The Birmingham age-herald., 1917-08-31

now recommended by that committee s2. 20 per bushel at Chicago for the pasic grade-will be rigidly adhered to by the food administration.
 HOPE OF ADMINISTRATION
 Ut is the hope and expectation or the food administration and my own also, that this step will at once staoillze ana keep within moderate bounds the price of wheat for all transactions through the nresent crop year. and in consequence the prices of flour and bread also. The 1000 act has given large powers for the con trol of storage and exchange operations and these powers will be fully exerclsed. An inevitable consequence Will pc tha financial dealings cannot follow thelr usual course Whatever the advantages and disadvantages of the ordinary ma chinery of trade, 1t cannot function well under such disturbed and abnormal con ditions as now exist. In US place tue food administration now fixes TOT us purchases fair price, as recommended unanimously by committee representa- tive of all interests and all sections, and believes that thereby 1t will eliminate speculation, make possible the conduct of every operation in the full light of day, maintain the publicly stated price TOT all and through economies made pos sble by stabilization and control, better the position of the consumers also HOOVER TOOK NO PART '.Mr. Hoover at his express wish, has taken no part in the deliberations of the committee on whose recommendations nor has he in any way intlmated an opinion regarding that price.
 REPORT OF COMMITTEE The report of the committee, addressed to the President, follows:
 T ataaf fna ha asked by you to recommend the price which the government should pay for the 1917 crop of wheat.
 .In it's delib erations the committee has kept constantly in mind the three fol- lowing factors:
 .1 The fact that the United States Is at war
 ducer.
 g. The necessity of reducing the cost of living to the consumer.
 SUPPLY AND DEMAND "The normal laws of supply and de- mand have been violently interfered with and Congress has undertaken to offset this disturbance by conferring extraordi- nary powers upon the President to sta bilze prices. Each of the foregoing fac l tors grows out of conditions which have received the careful attention of the com ~--~ wheat yield in a great and important section of the country has this year been 1 below the normal; that over against this situation is the crying need among the whole body of the population. especially the wage-earners, that the rising tide of cost shall be stayed and reduced as raD- idly as possible consistent with the well l fare of the producer; that the govern lment is at the present time engaged in the great task of reducing and stabiliz- | ing costs of other staple commodities; ] that the wheat of the world is abundant | for its needs, even disregarding the stores l in Russia, but because of lack of ship l ping and war conditions the burden of 1 supplying wheat to the allies and to I neutral nations rests for the time being
 upon the United States and Canada.
 CONTINUING GUARANTY
 Your committee has also considered the fact that the government price for the 1917 wheat crop is in effect continu- ing guaranty until the minimum price guaranteed by Congress for the 1918 cror goes into effect (July l, 19iS) It has con sidered the relation of the 1913 minimum price guaranty to the price here recom- mended. 1t has also considered the effect which an early termination of the wal
 would have upon the wheat markets oi
 the world.
 l Tn reaching it's conclusion the com. mittee has been guided by the principles we have announced, that fair price
 should be based upon the cost of produc-
 tion for the entire country plus reason
 able profit We have relied upon the cost
 estimates for the crop of 1917 furnished
 by the United States department of agri-
 culture, checked by the results of our in dependent investigations and the evidence
 submitted to the committee by producers and their representatives.
 REGENT REGULATIONS n .The committee had considered regula
 tions recently established by the United ictr jnv1