South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-01-03


demand for foodstuffs. historical
and indefensible domestic buying.
boarding and Withholding OF sup
plies, prOfiteering apprOximating
privateering, unreasonable climatic
conditions are a few OF the clouds
that have overhung the grain and
provision markets during the entire
year just closed.
The imperative needs Of our al
lies made it incumbent upon our
national government not only TO
stimulate production and yield, but
10 distribute equita bly, and season.
ably the nOne-toO-large wheat
crop. The food administration
grain corporation. with $4,000. 600
capital assumed the entire hand
ling Of the wheat crop; doing away
entirely and completely with the
time-estab lished, tested methods Of
bringing the wheat producer and
ultimate consumer together Not
only was the wheat handling turned
out of its natural channels, but the
government in its efforts to stop
soaring prices, and TO encourage
production Of meat animals. frOwn-
ed upon unnecessary buying Of
coarse grains and OF hog products.
The grain trade at large. as sym
bolized and represented by the
boards of trade and grain ex-
/ changes, stood as a solid unit in
recognizing the wishes, desires and
efforts Of the nation. Not only
were these wishes respected but
/ the general trend of the govern
ments aims and ideas was fore
seen, and anticipatory action taken.
Repeatedly have the exchanges.
working as a whole, promulgated
and enforced drastic regulations
which were designed 10. and did.
harmonic with governmental en-
I deavors to conserve the interests Of
I the civilized world.
Profits Cut Down.
These restrictions and limitations
necessarily pared down, in fact cut
to the bone, the normal volume of
trade and quota Of ordinary profits.
/ Despite this very material reduc-
ton in income. there remains on the
part of the exchanges, and the in
dividual members thereof. a quick
and ready willingness to respond TO
each and every demand that the
nation makes.
Just at this point ii is opportune
to repeat a truism: Grain ex-
changes are only meeting places for
men who are IN the business of
merchandising foods and feeds.
Manifestly they (the exchanges)
cannot in any conceivable manner
influence prices. A very impressive
example of this appeared during
the year; it was the fact that prices
for future delivery of wheat did not
at any time reach the high level Of
wheat in carload lots-s3.43 was
paid in Chicago for milling wheat
and $3.50 in southwestern markets,
while the highest price for any of
the future deliveries was 1925.
The Cause OF High Cost OF Living.
Badly disturbed, if not democrat
| lied, worlds transportation was pri-
marily responsible for the high cost
of living. Southern hemisphere sup
plies being cut off. the demand
| from Great Britain and civilized
Europe inevitably turned to this
country for everything in the way
of food. Supplementing this extra
ordinary demand, came a prospect
i've disaster 10 our winter wheat
crop. All of which prompted the
government TO issue warnings of
possible food shortage. unless con-
certed and organized conservation
were practiced. Unfortunately
these warnings served only 10
bring to the surface the animal in
stinct Of self-preservation resulting
in a wave of hysterical buying by
individuals and nations. which in
stantly absorbed all available sup
plies and frightened the hold Of the
! producer upon what reserves he
still held.
IN order 10 prevent boarding and
| building up of accumulations by
our enemies at home or abroad, and
10 bring about an equitable appor-
tionment to our allies, as well as TO
ourselves. the government assumed
absolute and full control Of wheat,
fixing a basic price OF S2.20 at
terminal domestic markets for the
crop of 1917 The government also
guaranteed a minimum price Of 50
for next years crop, effective July
| 1, 1918. as an inducement for pro-
ducing the largest possible yield.
Grain Export Heavier.
Although the first effect Of efforts
( towards conservation was the direct
! reverse of desires and intentions,
the final result was a material re-
duction in home consumption,
plainly shown by actual shipments
abroad from the 1916 crop of 1885,
/ coo, 600 bushels wheat and -four,
against an estimated expOrtable sur
plus OF not 10 exceed $4,000, 900
/ bushels
The guaranteed minimum Of 81
for next years crop resulted in a
winter wheat area Of 42.17O.000
/ acres. or So percent greater than
l last year and comparing with a To-
/ year average area OF 34,SS1,0 BOO
/ acres. It is believed that the spring
sown crop will show a correspond
/ ingly gratifying increase.
Disaster befell the wheat crop
seeded in the fall Of 1915. 1881
/ 00e acres being abandoned because
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