Omaha daily bee., 1918-12-27
REGULATION OF
wheat PRICE TO
1920 IS ASKED
Congress Asked to Pass Law
Which Will Protect
Government Against
Loss by Imports.

Washington, Dec. 26.---Legislation
to make effective the wheat price
guarantee for the 1919 crop and at
the same time to safeguard the gov
ernment against losses was recon-
mended to congress today by the
Department of Agriculture and the
food administration.
A memorandum sent to Represen-
tative Lever of South Carolina,
chairman of the house agricultural
committee, made the following re-
concentrations:
First-Extenson by congress be-
yond June i, 1920, of the date for
tt government purchase of the 1919
crop.
Second-Continuance of the food
administration grain corporation
or creation OF a new agency to
buy, store and sell 1919 wheat that
may be offered to the government
and;
Third-Possible legislative pro-
visions to protect the government
against wheat or -four brought in
from other countries during the
period of effectiveness of the guar
anteed price and also to protect
buyers of such wheat as long as the
wheat is in this country and not
consumed.
II. Approved By President
4, The memorandum was compiled
with the approval of President Will
son. and Secretary Houston in sub
hitting it said, "the government has
made a guarantee and it goes with
out saying that it must be made Ell
fective."
Regarding extension Of the date
of government purchase, the mem
orandum said:
vt will be impossible to carry
OFT the guarantee as it is intended
by Iune |, 1920, and if producers
cannot sell their wheat to the
United States before that date and
are left with wheat on hand, it will
be felt that the Obligation OF the
United States has not beeA carried
out in good faith"
"The government purchasing
agency" -he memorandum set sorth;
'mr have ample funds to at all
I mes purchase throughout the Unit
ed States at the guaranteed price
such wheat of the 1919 crop as may
\, offered to it, and a to provide
storage facilities to take care OF the
same by lease on purchase OF tacill-
ties now in existence or by building
additional facilities, or both.
"The appropriation will have to
be on basis,io enable the guaran,
tc price to be maintained at all
times by purchase of wheat with
funds provided by the government
and without relying on outside cred
it."
Large Stocks on Farms.
The food administration grain cor
poration is maintaining the price Tor
the 1918 crop with its capital OF
$l50,00o,000 and its credits, COM
bined with the export demand for
wheat. The 1918 crop is estimated
At ol7. 100000 bushels and on Novem-
Der 20, last, the movement from the
farms amounted to 5SS,OOOOO0, OF
which 2S4,000000 was in storage.
ct will be observed" said the
memorandum, that there is very
large amount of the 1918 crop yet
to be moved from the farms, and 1t
will take all the resources OF the
grain corporation and the most care
ful attention to every detail to carry
out the guaranteed price for the crop
of 1918. In fact, if the export de-
mand should diminish, it may be
necessary that there be further APP
preparation by congress.
The carrying out of the guaranteed
price for the 1919 crop presents
much more difficult situation, it was
pointed out, because the winter
wheat acreage is about 9,O0o,oUoI
acres larger than that for 1918, and
if an increase in spring wheat is
planted the harvest of 1919 may be
in excess of that of 1918.
Basis For Action.
Export Of 1918 wheat is estimated
at ;bout 100000, a larger figure
than can be expected for the 1917,
crop, because of shipments from
Canada. Australia, India and Argen-
tina. Domestic consumption OF the
1919 crop, including the seed wheat
reserve. the memorandum stated,
cannot exceed 640,000'00O bushels as
,,,;,,;mun The possible 1919 crop
I was fixed at / ia, 100000 bushels, OF
which 100000 would be for seed
requirements, 100000 bushels tor
domestic consumption, leaving 4|4'-
100000 for export.
The 1919 crop for export, it, was
pointed out, might sell in competl-
ton with that from other countries
at a price considerably lower than
the guaranteed price. which prob
ABLY would result in similar reduc-
tons at home.