The Nashville globe. [volume] (Nashville, Tenn.) 1906-193?, 1918-03-29

and to control the reduced supplies in
ternally, in order that all may be
treated alike-rich and poor-and this
implies a control of distribution and
price.
As stated, practically the only COM
as to which these new econo
mic forces dangerously involve the
United States are wheat and sugar. !
All control measures are the less Of
evils. In wheat we were faced with a
single agency whose proportionate
purchases to the total were such as to
dominate the price Any relationship
with this agency by our officials ir
limiting their operations thus becomes
absolutely price fixing, and it becomes
at once a question as to whether it
should be done openly and frankly
with our producing community, or done
secretly, at the will of government
officials. Furthermore, in the ordin-
airy course of our wheat marketing,
the wheat goes t0 the markets during
the first four months of the harvest
year and during this period, were no
control established with the Allies
and neutrals, it would be entirely pos
sible for them TO export from the
United States such a portion of our
wheat supplies as to leave our popu.
lation short of bread. II has here
fore been necessary in the interest Of
the American consumer, that the
government should intervene to pro-
tect his supplies Again, in the face
of this abnormal situation, the nor
nal wheat marketing machinery Of
the country was completely paraly2ed.
To have attempted the normal course
of marketing through the Boards of
Trade and Exchanges, by which the
buyers of wheat protect their opera
lions by sales of futures, involved a
dangerous series of speculations, nor
did the Exchanges themselves wish
to be the centers around which such
speculations should take place. Every
action of the Allied buyer, every
rumor of peace and thereby the liberia
ton of the large wheat supplies in
Australia, every monthly shipment of
wheat abroad in the depletion of ma
tional supplies, would have been the
center of speculation and the cause OF
violent fluctuations in the Exchanges
of the same character that occurred
during the last five months Of the 1916
harvest year, when, although the farm
err had marketed his wheat at an aver
age Of $1.44 a bushel, the price, due
| to these very causes, at one time rose
to over $500 bushel, and -four to
over $500 a barrel.
In these circumstances an independ
ent commission was appointed by the
President, upon which the farming
community was represented by six
members out of eleven, and this com
mission unanimously agreed upon the
price of $3.50 for No. l, Northern
wheat, based on Chicago, as market
CENTER and in coming to its conclu
Isions this committee considered The
necessity to give to the farmer price
not only covering his cost and norma
profit but a price that would stimulate
and assure future production. Tina
their Judgment has proved by the
fact that 100000 acres of winter
wheat have been seeded being an in
crease of about 100000 acres ovel
any acreage hitherto known in oul
history and some 100000 acres oyel
the pre-war average.
Having established the basic price
of this commodity, the Food Admin
istration has followed it through the
manufacturing and distributing trades
with limitations as to the profits tC
be earned in distribution and has
thereby brought this prime commodity
to the door of the consumer at the
least possible expense and at a mar
gin between producer and consumer
less than normal. The same situa
ton confronts the American farmer
and the American consumer in whea
for the next harvest year.
In the matter of sugar, the same
economic forces are in action to dis
place normal traffic, except that in this
case the American people are purChas
ers abroad of the large portion o
their supplies and that in addition t.
thenecessity Of government action Il
secure a fair division Of the ayaliabl,
sugar to the American people, it ha
been common business prudence t
join with the Allied governments il
definite contract with the Cuban
authorities as to price, rather thai
leave it to the fluctuations which
would arise from short supplies ant
irregular shipping facilities. Wher'
the various arrangements made hav
involved the interests of the American
sugar producers they have been made
in consultation with him and with hi
cooperation, in order that he nigh
be protested in his industry. In this
case, as with wheat, the distributing
trades have been placed under regula
ton as to the profits in distribution
; of a stabilized commodity and the
consumer protected as to price.
The only other situation where the
Food Administration has interested
itself in price Of agricultural products
has been in instances such as mill
to the cities, where the producer was
himself organized and was in SHARP
conflict with the consumer, and where
these conflicts promised to'work hard
ship on both producer and consumer
In such cases the Food Administra
ton has acted merely as friendly
agent in securing settlement between
the parties. In all such cases the
producer must necessarily be a con
tracing party and therefore must be