New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1917-09-19

PRICE FIXING OF WHEAT
IS BENEFIT TO FARMERS
Fixing the price of wheat by the federal
government is discussed by the Christian
Science Monitor as follows:
It IS only necessary to glance over
the columns of figures showing the quota
tons for wheat, during the last forty
years, to become convinced that there
has been as little stability about the price
of the cereal in peace as there has been
in war. Weather conditions, the state
of the growing crops at home and abroad,
acreage planted, harvest prospects, in
|ternational implications, political ex-
citement, tightness and looseness Of the
money market, these and thousand
and one other actual and imaginary in
Efuences, rather than the law Of supply
and demand, have produced those fucta-
tons in prices which have made trading
in wheat futures so attractive to the
Spectator. Utterly regardless of the
area planted in wheat the world over,
and utterly regardless of the probable
value of the yield, anybody, given a
sufficient amount of money to carry
through a deal, could bull or bear the
market 50 as to make the speculative
overturn run into millions Of dollars
within few hours.
AS a matter of fact, the market has
frequently been manipulated in this
manner, and, oftener than not, sim
ply to satisfy the craving of some per-
son, or some clique Of persons, for gam
bling. In the forty years previous to the
war, the range of cash wheat prices was
all the way from 485 7-8 cents to So a
bushel. Itwould bulge and slump
according to the disposition of the pit, =
as much as 81 a bushel in single season.
The uncertainty, indeed, of grain, prices
for years made farming in the United
States largely a matter of chance, rather
than a matter of industry and skill. The.
corner operator or the clique has, time
and again, been dictator Of the price Of
bread in the United States. In some Of
the ideals the price of wheat has been
run up to, or nearly to, the 81 point in
years when the farmer has Melted only
40 cents OF: SO a bushels for his crop.
Through combination buying, artificial
shortages" have been created, the close.
of deals in such cases showing an i'm
mense surplus of the cereal.
Speculation within the last few
months, would have placed the price
Of wheat at such point as to have de-
prived millions of the people Of -four
and bread, had not the Government
interposed and prevented further trad
ing in futures. The allied nations were
paying an extortionate price for wheat
and the extortion bade fair to run to
greater lengths, when the gamblers in
foodstufs were warned to desist. This
latest Of many similar experiences made
it plain to the public that control Of food
prices must no longer be left TO private,
selfish and overreaching interests. As
consequence, the nation has the Food
Control Act, and the President, under
the provisions of that act, has named
1920 per bushels as the basic price for.
No. 1 northern spring wheat Of the 1917
crop.
t'The Food Administration agreed up
on this price after hearing the argu-
ments Of labor men, farmers, and others
representing producers, handlers, and
consumers, and the President approves
the finding. In the opinion Of Mr..
Wilson, the action taken Twill eliminate
speculation, make possible the conduct
Of every operation in the full light Of day,
maintain the publicly stated price for
all, and, through economies made possible
By sterilization and control, better the
position of consumers also.
Zone certain result Of the adoption Of
price fixing, whether the present or some
other price shall be named for crops to
come, will be the encouragement given
to farming and the consequent stimula-
ton of larger production. Under the
new system, the producer and the con-
sumner alike will know, at least, what
they may reasonably expect in return for
their expenditure Of labor or money.
Another certain and equally salts
factory result Of the sterilization Of the
prices Of wheat should be the scouraged-
/ ment of distribution. It will not be to
! the advantage Of the farmer, the specula-
tor, or the warehouseman to hold 1917
wheat in the expectation Of scarcity
and consequent advance in price. he
will be entitled to the market price and
no more. It will be folly to attempt te