The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-28
wheat to Burn Next Year ut Fam
Inc Prices to the Consumer.

Further Congress legislation on the
price guarantee for the 1919 wheat
crop Is urged by the Administrative
Government because, as The Sun
gave warning several weeks ago, this
country next year Is going to be
buried under wheat.
OF this years crop there still re-
NAMED in the hands of the farmers
on December 1 3O0,OOO,00o bushels.
Held in storage by the Government
and other buyers we're 250,OOO,OOO
bushels more. Domestic consumption
between now and the harvesting Of
the 1919 crops may take care of 3d.
100000 bushels n month, but, at that,
there would still be a quarter of a
billion Of bushels to be disposed OF
only by possible export. Perhaps the
export demand will absorb the greater
part Of 1t, in spite Of the big surplus
now released from Argentina and
Australia perhaps not. In any event.
what this country faces in the new
year, with the Government guarantee
Ing a price of 1925 a bushel, is an
estimated crop, planted under the
stimulus Of the S2.26 price, of more
than 1.1O0,OOOOOO bushels. 1t may
60 as high as LOO 100000 bushels.
Now, with Australian, South Amer
ican, Indian, probably even Russian
exports resumed, upward Of n billion
end a quarter bushels of wheat here
next year will mean that It will really
be worth, under the law OF supply
and demand, 30 cents or SO cents a
bushel. Assume, however, that I'M
der normal circumstances it would
not 60 beyond 81 bushel. But the
Government must see that the farmer
gets $2.26 a bushel. It all comes
down, then, to this: The Govern
ment will he paying for perhaps a
billion bushels of wheat about 81 a
bushel more than It Is worth, The
Government, therefore, will be stung
on this colossal wheat deal about a
billion Of dollars. But the Govern
ment cannot be stung that amount or
any amount without the Taxpayers
footing the loss.
Since the taxpayers will have to
carry the bulk of the Governments
wheat losses anyhow, as they will
have to carry the Governments rail
road losses, shipping losses and al
other business losses, what sense Is
there in the Government trying tc
hold the wheat price up to the con
sumer merely to save the Govern
ment's face?
In a position 1t cannot get out Of
the Government must pay the farmer
his $226. The Government mus
have the money or the credit tc
finance this prodigious business to b.
done at an incompatible loss. Well
give the GOVERNMENT the money oil
the credit 10 G. al up this financia
disaster. But sop right there. &c
back on the spot to the laws Of thu
Almighty. Let the wheat go TO mar
ket Just as If the farmer had never
had his guarantee. Let 1t sell to thu
miller for flour and 10 the ultimate
consumer for bread just as 1t would
sell If the farmers, not the Govern
ment, with a supply of billion ant
quarter bushels Of wheat and a de
mand for half as much, had to go t
market and do their own trading.
The Congress ear in particular
should never listen to the appeal fol
mn extension beyond June /, 1920, o
the period for the Government pur
chase Of the 1910 crop. This would
simply set the farmers to a Wild plant
ing Of spring wheat for their last grea
killing out Of the Treasury. When tn
huge winter crop alone assures glu
Of wheat in 1919, the spring croI
should be eliminated, not magnlfied
The farmers do not pay Fedora
taxes. The taxes which the rest o
the people would have to pay to set
lie for the Governments wheat losse
would not deter the farmers from in
creasing the Treasury's wheat loss b,
another half a billion or even a full
billion OF dollars. 1t would excit
them to do that very thing. Tn
time limit should not be extended on
minute, when the inevitable result o
such action would be glut of sprlnl
wheat on top Of gut OF white
wheat
The Government, in truth, woul,
be justified In cancelling it's guarantee
for spring wheat. The farmers, re
lying on that pledge, have not We
spent their money for high labor an
high materials to raise spring when
% they have to raise winter whea
Il