The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-08-13

efficient government action is
brought into play, either, (aD the
American producer may face a slump
in wheat, possibly below his produc-
ton cost, and Obi the export price Of
wheat which ultimately determines
the real price, 10 at the will Of sin
gle agency. Co someone must buy
the surplus wheat at any given NOM
ent and IL the surplus passes int
speculative hands. It will be held for
higher prices later in the year. I'd.
with stabilized prices, extra hazards
are introduced into all distribution
links which must be paid for by the
consumer. II must be evident that
the United States government can
more Justly deal with the situation
than any Of the agencies mentioned.
Therefore, the food administration
has determined TO take the following
course:
Government Licenses Required.
''First--In order to eliminate spec
ulation in wheat and -four, all eleva-
tors and mills over 100 barrels daily
capacity will be required to take out
a government license. the conditions
OF this license to be:
That only reasonable and custom
airy charges shall be made for ware
house service: That no wheat shall
be stored for more than thirty days
without the approval Of the food ad-
ministration, that certain informa-
ton as to receipts and shipments
shall be supplied regularly. The
grain exchanges are being asked 10
suspend all dealings and quotations
in future wheat. These regulations
will come into force Sept. / and the
licenses will be prepared this week.
while farmers cooperative ele-
vators are excepted by the food bill.
this, however, only applies to mutual
concerns and not to stock companies,
and in any event under the advan-
tages OF Joining the plan. none are
likely to stand out.
Will Open Purchasing Agencies.
I'm substitution OF the broken
down marketing machinery the food
administration proposes to open
agencies for the purchase OF all
wheat at the principal terminals.
carrying on its transactions with the
usual dealers and is prepared tn take
the whole harvest IL necessary in or
der to maintain a fair price and will
resell wheat for export in such guam
titles as we can afford to part with
in protection of our own people on
one hand and to sell on the other TO
TIE hOuAEbNAC NOhSuHlB~
ton. The administration will make
no charge except a nominal percen-
tage to cover cost Of the operation
and arrangements will be made
which will assure the government
against loss
"In order that nothing shall be left
to mischarge we are setting up a
properly constituted and independent
auditing committee which will check
all transactions at every point.
Committee to Determine Price.
The food administration under
these arrangements would have large
influence in effecting the price of
wheat. With a view to determining
a fair price. the President has APP
proved the appointment Of q COM
mittee to be selected from represen-
tatives Of the producing sections and
consuming elements in q community.
This committee will be assembled
under the Craftsmanship of President
Garfield. of Williams college, and IL
will be the duty of this committee to
determine a fair price for the 1917
harvest. Upon the determination OF
this fair basis, 1t is the intention OF
the food administration to use every
authority given 1t under the bill and
the control OF exports to effect the
throughout the whole Of the 1917 har-
vest year without change or f1uctua-
ton. 1t should thus be clear that 1t
will not be to the advantage of any
producer to hold back his grain in
anticipation OF further advance. for
he will do so only at his own cost
of storage and interest. and IL 1t is
necessary for the government to buy
the entire wheat harvest in order to
maintain this fair price in protection
of the producer, we intend to do SO.
Holding of Contracts Unlawful
Furthermore. the holding of wheat
or -four contracts by persons not en-
gagged in the trade. and even when
in trade. in larger quantities than is
necessary for the ordinary course Of
their business. is unlawful under the
act, and such cases will be prosecut-
ed with vigor. And we would ad-
wise such holders to liquidate their
contracts at once.
"By the above arrangement. we be-
lieve that We shall stabilize the price
of wheat throughout the year. that
the hazards of operations due 70
fiuctuating prices which are imposed
upon our milling and distributing