The Clio messenger., 1918-03-01
PRESIDENT BALKS
WHEAT BOOST
GIVES SOUND REASONS FOR ARBIT-
AIRY ACTION
Fixes Same Price as Last Year to Thwart
Speculation and Profiteering
in the Future

A price of So 20 bushel-the same
as for last years crop-was fixed by
President Wilson recently for the COM
ing seasons wheat yield The price is
for number one northern spring wheat
at Chicago, with scale of differentias
for other-markets.
The diferentals differ to slight ex-
tent from those now operative and
range from minimum of So to max
imum of 1928.
In fixing by proclamation price now
for the new crop, which will not be
harvested till June, the president was
believed to have had two objects in
view. The first was to halt legislation
pending in congress to fix prices at
from 1925 to SO and the other was to
stimulate spring planting.
In a statement accompanying his
proclamation, the president said.
"Under the food control act of Aug
ust 10, 1917, it is my duty to announce
a guaranteed price for wheat of the
1918 harvest l am, therefore. issuing
proclamation setting the price at the
principal interior primary markets. 1t
makes no essential alteration in the
present guarantee. 1t is continuation
of the present prices of wheat, with
some adjustments arising from the des-
+, ignation of additional terminal market
ing points.
"This guaranteed price assures the
farmer of a reasonable profit even if
the war should end within the year and
the large stores of grain in those Sec
tions Of the world that are now cut off
from transportation should again come
into competition with his products. To
increase the price of wheat above the
present figure, or to agitate any in
crease of price. would have the effect
of very seriously hampering the large
operations of the nation and of the al
lies by causing the wheat of last years
crop to be withheld from the market.
1t would, moreover, dislocate all the
present wage levels that have been es-
tablished after much anxious discussion
and would, therefore, create an indus
trial unrest which would be harmful to
every industry in the country.
II know the spirit Of our farmers
and have not the least doubt as to the
loyalty with which they will accept the
present decision. The fall wheat plant
ing, which furnishes two>thirds of our
wheat production, took place with no
other assurance than this and the farm
ers' confidence was demonstrated by
the fact that they planted an acreage
larger than the record of any proceed
ing year, larger by two million acres
than the second largest record year,
and seven million acres more than the
average for the five years before the
outbreak of the European war.
at seems not to be generally under
stood why wheat is picked out for
price determination and only wheat,
among the cereals. The answer is that,
while normal distribution of all our
farm products has been subject to
great disturbances during the last three
years, because of war conditions, only
two commodities, namely, wheat and
sugar, have been so seriously affected
as to require a governmental interven-
ton.
"The disturbances which affect these
a.xI al - lae,
ise from the fact that all of the over
seas shipping in the world is now under
government control and that the govern
ment is obliged to assign tonnage to
each commodity that enters into COM
mercal overseas traffic. 1t has, con-
sequently, been necessary TO establish
sjrle agencies for the purchase of the
fbod supplies which must go abroad
y'The purchase of wheat in the United
States for foreign use is of so great
yolame in comparison with the avail
al iesdomestic supply that the price of
uheat has been materially disturbed
and it became necessary, to protect
both the producer and the consumer, to
prevent speculation. 1t was necessary,
therefore, for the government to exer-
else measure of direct supervision as
far as possible to control purchases of
wheat and the processes of its exporta-
ton. This supervision necessarily am
ounted to price fixing, and ! therefore
thought it fair and wise that there
should be price stated that should be
at once liberal and equitable.
"Those peculiar circumstances gov
efning the handling and consumption of
wheat put the farmer at the very CEN
ter of war service. Next to the soldier
liz..aIf ha Ia aarrincr tho countru and