Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1917-08-22

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THE food administration has an
j nounccd its plans ~ 10 the con-
troll Of wheat. hour and bread
Tne disturbance to the worlds com
merce and short supplies has caused q
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 belligerent lines
or short shipping the normal determine
ton Of the price Of wheat By the ebb
and low Of commerce b 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 one buyer. Also the European neu-
trails are now 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 II the real
price--f not controlled viii be subject
to almost a single viii Of the foreign
purchaser.
Thiri-In normal times American
wheat moves largely 70 Europe In the
fall months. This year the shortage
Of shipping necessitates its distribution
over the entire year. Therefore there
Il danger Of n 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 In the
event of peace or defeat Of the submn-
rfnes these would Be available and
might seriously demorafise the demand
for American wheat.
Fifth.-It must be clearly understood
that the guaranteed minimum price Of
50 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 II therefore no
determined price for the 1917 harvest
Must Regulate the Price.
The result Of this situation L. that
the normal price making machinery Il
entirely broken down unless some en-
cient government action Il brought
into play. Either (al the American pro
Queer may face a slu.rp In wheat pos
sibly below his production cost, and (b)
the export price Of wheat, which ulti-
mately determines the real price, IL At
the will Of single agency. (c) Some
one must buy the surplus wheat a. any
given moment, and II the surplus
passes Into speculative hands 1t viii
be held for higher prices later In the
year. ID, With stabilized prices, extra
hazards are introduced into all dis
tribution links. which must be paid
for BY the consumer. 1t must be evt-
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-
tion In wheat and -four. all elevators
and mills of over 100 barrels daily ca
pacity viii be required to take out q
government license. the conditions Of
this license to lie 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
viii come into force Sept 1.
While farmers cooperative elevators
are excepted by the food bill. 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
70 Open Agencies ct 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 It II
prepared to take the whole harvest u
necessary In order to maintain . fair
price and will resell wheat for export
in such quantities - we can afford to
part with In protection of our own peo-
pie, on one hand, and to sell, on the
other, to the millers for domestic con-
sumption The administration VIII
make no charge except nominal per
centage to cover costs Of the opera
ton, and arrangements will be made
which win assure the government
against loss.
In order that nothing shall Be left to
mischarge we are setting up properly