The sun., 1918-09-03
POSSIBLE PEACE
SEEN BY WILSON
Considers 1t a Factor Before
Middle of 1920 in Fixing
Wheat Price.
TO APPOINT COMMISSION
He Decides to Maintain 1920
Minimum Rate-Risk of
S5OO.OOO.OOO Loss.
} APPOINT COMMISSION
Special Despatch TO Tag SuS

oGeCtf DespdtCh 10 lHE SIS.
WASHINGTON. Sept. 2.-Possibility of a
world peace before the middle of 1920
that would change present trade cur
rents and commodity values was men
toned to-day by President Wilson in his
explanatory memorandum. issued in
connection with his formal proclamatio
fixing the minimum price -of the 1919
wheat crop at s220 a bushel
The President advanced this as one
reason. why 1t would be dangerous for
the Government to fx wheat prices too
far in advance.
In issuing his proclamation the Presi-
dent took cognizance OF the general sem
timent OF the wheat producing States in
favor OF a readjustment Of wheat prices
on higher levels and promised the coun-
try that in the spring OF 1919 he would
appoint disirterested commission TO
prepare data and report upon the cost
of production, including labor and sup
plies. and recommend new price.
President's Mem ora ndum.
The memorandum with which the
President accompcn MED his procla m alton
! follows:
In issuing to-day the Governments
guarantee of tne same price for the
| 1919 wheat crop that was guaranteed
for the 1918 crop, ! wish Il to be
understood that in the spring OF 1919
| l Will appoint disinterested commits
! sion who will secure for me the facts
| by that time disclosed as TO the in
creased cost OF farm labor and sup
| plies, dHng the three year pre-war
! average prices of wheat, OF labor and
| OF supply costs as basis, ard that
! from this information l shall deter
mine whether there should be an in-
| crease in price above the present level,
| and II so what advance. in order TO
! maintain for the farmer a good re-
! turn. Should it then appear that an
! increase is deserved over the present
guarantee, however it will De applied
! only to those who have by next harvest
/ already marketHl their 1913 wheat.
| II i3 the desire and intention OF all
! departments OF the Administration to
/ give 10 the wheat grower a fair and
! stimulat.ve return in order that the
present acreage in wheat may he
maintained
find a grsrt 60, 7.ct OF opinion
! among various sections OF the country
! as to the pr.ca that should be named
as minirGurr guarantee. It must be
obvious to all, however, that the fac
| tors which will make for Increased or
decreased cost OF production OF next
| years harvest cannot be determined
until the near approach 10 the harvest.
4. Considerable National Risk.
/ In giving a guaranteed price for
wheat one year in advance (the only
industry guaranteed by, the Govern
ment), there Is involved a considera-
Bile national risk. II there Should be
peace or increased shipping available
before the middle OF 1920, europe will
naturally supply itself from the large
stores of much cheaper wAeat now in
the Southern Hemisphere; and, there
fore, the Government is undertaking
a risk which. might in such an event
result in a nationa. loss OF as much
as S500,000,0O0 through an unstable
surplus or, in any event. in maintain
ing a high level OF price 10 our own
people for long period subsequent TO
freedom in the worlds markets.
bespite this, the desirability Of as
suring supply TO the world of prime
brea,stufrs by insuring the farmer
against the fluctuations in prices that
would result from the uncertainties of
the present situation and from the
speculation those uncertainties entail.
seems to me to make the continuation
of the guarantee for another year de-
sirab,c.
On the other hand, it is clear that
before increasing this liability by ,a.se
sums with the risks set forth above