Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-08-13
GOVERNMENT MAY
TAKE WHEAT CROP
Plan to Control Wheat, Flour
and Bread Will Not Toll
crate Speculation.
MAY INVOKE MINIMUM PRICE
Mills and Elevators Must Sc
cure a License to Cut
Down on Storage.

WASHINGTON. Aug. 1.-THE food
administration announced tonight its
plan for controlling wheat. flour and
bread. revealing that the government
IS prepared to take over the whole
1917 wheat harvest II necessary to
conserve the supply. obtain just prices
for Americas fighting forces and their
allies and reduce costs to the general
public In the United States.
Establishing of buying agencies at
all the principal terminals licensing
OF elevators and mills. fixing of a
price to be considered fair. regulation
of the middleman and OF grain ex-
changes, with the elimination of trad
ing in futures, are the chief features
OF the plan. The licensing viii. begin
September /.
The minimum price Of 81 for wheat
fixed by congress does not become cr-
fectlvc until next year. but the ad-
minlstratlon proposed TO exercise
very thoro control over the years crop
thtu powers conferred under the food
and export control bills.
Following Is the administratlon's
announCem
Market Disrupted.
"The disturbance to the worlds
commerce and short supplies have
caused n greater disruption of the
normal markets for wheat than any
other cereal.
Il. As n result OF the isolation OF
certain OF the worlds wheat producing
countries, by either belllgerent lines or
short shipping. the normal determina-
ton of the price of wheat by the ebb
and flow of commerce Is totally de-
stroved.
"2 In order to control speculation
and to SC cure more equitable distiibu-
ton of the available wheat and flour
between their countries, the allied
governments have placed the whole
purchase Of their supplies in the
hands Of one buyer. Also the Euro
pcan neutrals are now buying their
wheat thru single government aeents
instead of in the normal course ot
commerce. Therefore, the export
price of wheat and flour. and thus the
real price. II not controlled VIII be
subject to almost a single VIII or the
foreign purchaser.
"p In normal times American
wheat moves largely TO Europe In the
fall months. This year the shortage
Of shipping necessitate3 its iistribu-
tIon over the entire year. Therefore,
there is danger of a glut In our ware
house system over considerable
period.
"4-There are large stocks OF wheat
which can not be drawn upon by the
allies during the war, but In the event
Of peace or defeat of the submarines.
these would be available and might
seriously demoralize the demand Tor
American wheat.
Must Have Government.
"5-It must be clearly understood
that the guaranteed minimum price OF
80 per bushel for wheat set out In the
food bill does not apply to the l9lI
harvest. but only to the 1918 harvest
and then under conditions which must
be elaborated. there is therefore no
determined price for the 1917 wheat.
'The result OF this situation Is that
the normal price making machinery Is
broken entirely down unless some effi-
cient government action Is brought
into play either. (a) the American
producer may face a slump in wheat,
possbly below his production cost ana
OBJ the export price OF wheat which
ultimately determines the real price Is
at the will OF n single agency; (c)
someone must buy the surplus wheat
M anv given moment and II the sur
plus passes into speculative hands 1t
Will be held for higher prices later
in the year. (d) With stabilized prices
extra hazards are introduced into all
distribution links which must be paid
for by the consumers. 1t must be
evident that the United States gov
ernment can more justly deal with
the situation than any OF the agencies
mentioned.
Suspend Future Dealings.
therefore, the food administration
has determined to take the following
course:
"First. in order to eliminate specu-
lation i'm wheat AMI flour. elevators
and mills over one hundred barrels
daily capacity will be required to take
out government license. the condi-
tions of this license to be:
THAT only regular and customary
charges shall be made for warehouse
service. That no wheat shall be stored
for more than thirty days without tho
approval of the food administration;
that certain information as to receipts
and shipments shall be supplied regu-
larly. The grain exchanges are being
asked to suspend all dealings and quo
tations In future wheat. These regula-
tions will come into force September
/ and the licenses will be prepared
this week"