New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-17
Chicago, June IS.

Il exchanges IL iSb"'
idle and i'll advised. They are par
tally closed now for the first time
since the world war began, because the
British government had accumulated
an impossible line of long wheat IN
North America, 100000 bushels in
one market and 30,0O0,0O0 bushels IN
another. all for May. July and Septem-
her delivery. This proved too large
sneeulative burden for the exchange
machinery TO sustain in period OF
comparative scarcity and a famine
scare.
The Board of Trade Of Chicago
backed by all the other grain ex-
changes, could not break the foreign
corner in wheat except by partial clos
ing, under a rule not previously IN
voked. The runaway is no more an
indictment Of the exchange system than
The war is of Christianity. The answer
in each case is, mot enough Of it,
A canvass Of the grain trade TO get
the views Of experts shows the con-
sensus to be that the worst is over, but
that TO prevent serious trouble again
there must be close, workable under
standing with the food commissions and
buying agencies of Great Britain and
The United States. II is not function
Of grain exchanges to fix prices, and
they have j~~' s@iction only over their
,cmbers. They perform valuable
economic functions. which cannot be
performed By other organizations
Ordinary speculation is useful and nee
ossary. the grain trade says, and it had
nothing whatever 10 do with the recent
explosion. Bonar Laws investigation
convinced him OF that.
Benefit of High Prices
IA. Murray, Western editor Of "The
Wall Street Journal" says:
High prices accomplish the double
rurpose Of increasing production and
curtailing consumption more effectively
than any other influence. There is
abundant evidence Of that fact on all
sides right now. 1t is hoped that the
folly of letting unqualified theorists
spread a food shortage alarm broad
cast will not be repeated by letting un-
trained and unfriendly hands tamper
with the fine devices which express the
natural relations between supply and
demand.
"Now that the scare is subsiding 1t
nav be as well, taking the broad view,
that the public remains imbued with
the famine theory. foolish as it Is un-
less Nature goes on gigantic strike
because the world seems to be IN
series of short crop years, although IN
me past decade small yields in this
country have usually been followed by
large yields.
IF the exchanges are 10 be closed
The government must control-or Few
b;c interests will control-the grain
markets. Producers and consumers had
better take their chances with the
Government. But an open market
chastened and expertly supervised, Will
accomplish the ends sought more Ell
fectively. it is believed.
Governmental interference can serve
best in the transportation end OF the
uroblem. If there we're not enough cars
and ships 70 move small crops promptly
before we got into the war the move
ment of big crops next fall ano
winter will be staggering. Mobilization
If the railroads should accomplish
Great deal, but without moro ocear
bosts tho congestion of Eastern ter
minsls cannot BIO cleared away.
Farm Labor Next Problem
Next to transportation the most i'm
portant problem of the food campaign
is that Of labor, an adequate supply o
competcnt farm help. Here again 1t Il
suggested that the government can &C
complish a great deal more good thai
by interfering with the estaoishe,
agencies for exchanging grain for casl
or its equivalent and adjusting price
20 actual market conditions; also put
ting bread into the hands of those VIII
most need il when they need 1t most
Farmers in every section of Nortl
America are afraid that they will no
be able TO harvest all Of their crop
1.h bo n
way tracks and in coal mines, as wei
as in the fields, is becoming more acute
as enlistment proceeds and the har
vests draw nigh.
Canada is in worse plight, as most O
Us fl men Of military age. outside o.
the Province Of Quebec. are at th'
front or on the way. Last year sol
diers worked in the fields of thu
prairie provinces, and some farm labol
was imported from the United States
i may be necessary to mobilize avail
able farm labor in both countries as al
emergency military measure.
II the exchanges were closed it woulC
be necessary 20 devise some substitute
Herbert c. Hoover. Federal Food Com
missioner. has been quoted in Fargo
y. D., messages. which he promptly re
pudiated. as having told members o
a Northwestern farmers delegation
who conferred with him in Washington
that the government probably will pur
chase the nations entire grain crop
tina, the plans Of the government mean
practically the elimination Of grain ex
chance as factors in handling grain