Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-26
Government Seeks Congress
sional Safeguard
Against Losses
MUST PAY FIXED PRICE
Department of Agriculture
Recommends Legislation
Approved by President
By the Associated Press


Legislation TO make effective the
wheat price guarantee for the 1919
crop and at the same time to safe
guard the Government against losses
was recommended TO Congress today by
the Department Of Agriculture and the
food administration.
A memorandum sent to Representative
Lever, OF South Carolina, chairman of
the House Agricultural Committee, made
the following recommendations.
First. Extension by Congress be-
yond June I, 1920. of the date for the
Government purchase of the 1919
crop.
Second. Continuance of the food
ADMINISTRATION grain corporation or
creation of new agency TO buy.
be offered TO the Government and
Third. Possible legislative provi-
sions to protect the Government
against wheat or flour brought in
from other countries during the
period of effectiveness of the guaran-
teed price and also to protect buyers
OF such wheat as long as the wheat
is in this country and not consumed,
The memorandum was compiled with
the approval of President Wilson. and
Secretary Houston in submitting IT
said, the Government has made a guar
antee and II goes without saying that
II must be made effective"
Regarding extension of the date OF
Government purchase. the memorandum
said: 1T will be impossible 10 carry out
the guarantee as IL is intended by June
]. 1920, and II producers cannot sell their
wheat TO the United States before that
date and are left with wheat on hand,
II will be felt that the obligation of the
United States has not been carried out
IN good faith
'"rhe Government purchasing agency"
the memorandum sets forth must have
ample funds to at all times purchase
throughout the United States at the
guaranteed price such wheat of the 1919
crop as may be offered to II and also
TO provide storage facilities to take care
OF the same by lease or purchase of
facilities now in existence or by build
ing additional facilities, or both.
The appropriation will have to be on
a basis to enable the guarantee price
In be maintained at all times by pur-
chase Of wheat with funds provided
by the Government and without relying
on outside credit"
The food administration grain cor
poFation is maintaining the price for the
1918 crop with its capital of 0,000 600
and its credits. combined with the ex-
port demand for wheat. The 1918 crop
is estimated at 917.100.000 bushels, and
on November 20 last the movement from
the farms amounted to 5SS,0O0,OOO Of
which 254 ,000. 900 was in storage.
"It will be observed" said the mem
orandum, that there is very large
amount of the 1918 crop yet to be moved
from the farms. aud~it will take all the
reeourceS Of tho grain CORPORATION and
the most careful attention TO every de-
tail to carry out the guaranteed price
for the crop of 1918. In fact, If the eX-
port demand should diminish. it is pos
sible that in order to maintain the
guaranteed price it may be necessary
that there be a further appropriation
by Congress. On the other hand II the
Remand for export wheat should con-
tinue, II is hoped that on June |, 1919.
the grain corporation may have been
able to carry out the obligations of the
United States as to the 1913 crop with
out impairing its capital of $780,
O00, ,000."