Evening journal., 1918-12-28
Billion and A
HALF TO FARMERS
U. S. Government Stands
to Lose This Amount
Next Year
MUST PROTECT
THE CONSUMERS

WASHINGTON, Dec. 2s.-The govern
nent stands TO lose si,50O,O00,Oo0 in
1919 in order to keep faith with the
American farmer as 10 the government 5
fixed price OF wheat and protect the
100000 consumers from exorbltant
bread and food prices"
This opinion, expressed by an expert
a. the Food Administration. represents
the conclusion OF a man who has stud
led the wheat problem confronting the
country arising from the guarantee
price OF wheat for 1919 Of 1920 per
bushel.
William A. Glasgow, Ji-., chief coun-
sci for the Food Administration, said
That he saw no way by which the gov
ernment could avoid It's obligation 10
the farmer, and. therefore it would be
necessary to maintain the guaranteed
price Of wheat which the government,
in buying for the year 1919 must resell,
probably at a loss Of 81 or more per
bushel. II the government sustains
this estimated loss Of Si.5O0,OOO,O0O IL
Will be equivalent 10 a direct tax OF
SIS per capita upon every man, woman
and child In the United states.
This problem. one Of the greatest
heritages OF the war, is filled with so
many important bearings upon every
day life, upon the financial resources
OF the government and upon the gener-
al food prices that Will prevail in 1919
because the price OF wheat chiefly
decides the cost OF nearly all other
necessary articles Of foods engag-
ing the attention OF economists and ex-
perts These men see no way OF escap-
ing the governments obligation TO pay
The farmer $500 per bushel for his
wheat and in doing so 1t seems that
ne government must buy at this price
md sell at the worlds market price.
With the price Of wheat now Si.35 In
England. which is receiving the sur
plus supplies OF Argentina and Austria
Ia, experts look for a greater falling
price in 1919. The United States must
meet this price, and, therefore. the
government will suffer the loss in or
der 10 dispose OF the estimated surplus
for 1919 Of nearly lOOOO0.0OO bushels.
The price Of S220 for 1919 crop OF
wheat, which Is the same price guar
anteed for the 1918 crop, was fixed by
proclamation OF the President as a war
measure last summer. An effort was
made in Congress and a provision was
enacted increasing this price, but the
President vetoed the bill, at the same
time promising that next spring he
would appoint a commission TO inves-
tigate the cost Of production and II It
was found that a higher price was JUS
titled he would fix il.
During the war a lack OF shipping
rendered the wheat supply Of India.
Australia and Argentina unavailable
and the duty devolyed upon the
United states To- produce enough Of
this grain not only to supply its own
needs but to make up the deficiency for
the Allied nations. In order 10 stimu-
late production the government liked
the minimum price OF wheat for 1913
and maintained 10 for next year. The
farmers have planted their crops un-
der this guarantee. and, therefore, II
must be kept
The sudden collapse OF the war,
however, changed the entire situation
as regards food. Ships were Withdrawn
from war service to bring wheat from
Argentina and Australia and grain is
now pouring into England and France
from these countries at prices but lit
lie more than half the guaranteed
American prices. This condition is what
Is responsible for the big loss which
this government faces and for the es-
tlmated surplus in this country.
In the opinion Of Mr.. Glasgow, the
government by its control OF the price
OF wheat, cannot keep up the price
Of -four 10. SIP a barrel or the price OF
bread TO 10 cents beyond June Of next
year.
Bv that time Il is foreseen by him
that competition from foreign coun-
tries and protests from the public VIII
compel the government to sell its
wheat at a figure which VIII permit
The baker TO sell the average loal OF
bread at its pre-war price OF five cents.
It will be necessary for the govern
mcnt 70 do this, not only because II Is
fair 10 the public, but unless such a |
course is followed II will be unable 20 /
ilsrose Of the surplus wheat WHICH |
with the 1918 and 1919 surplus, may eA-
coed sOOOO0.OO0,OO0 bushels.
Mr.. Glasgow believes that the gov I
ernment should suffer the losses. what- /
over they may be, in order to keep /
faith with the wheat producers. Like |
wise that wheat should be sold at q |
loss in order 20 force reduction IN 1
Tho general food prices There are D |
900 600 farmers in this country ana the
other 95.OOOO00 consumers OF wneat
win force the government 10 take the
lction Indicated above. I