The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1919-09-03
HOOVER PREDICTS
GREAT FOOD GLUT
World Spectators Have Accumulated
Great Hoards in Northern Euro
pean Warehouses, and in U. s.

PARIS, Sept ga distressing era OF
speculation in loodstusif in the United
States and throughout the worlds pri
mary food markets is largely responsible
fer high food costs, III the opinion OF
Herbert c. Hoover, chairman Of the inter
allied relief organization, who, on the eve
OF h's departure for tic United States,
granted The Associated Press an inter
view. Wharves and warehouses in north
ern European ports are overhowing with
foodstuffs, principally meats, fats and
dairy products sent 10y merchants all over
the world he says These merchants, he
declares, gambled on sales in Poland,
Czecho-Si pvakia, the Basic states and
Germany At hish prices, but these states
have only deprecated local currency,
and many commodities are in danger of
spelling, as the central European market
for foodstulfs is r.ltod TO the aL,.i;v Of
the peoples to buy on credit.
This years speculations,' he SAID ARE
due, in my opinion, chiefly to the belief
81 tcod merchants and manufacture era that
wien the blockade was removed there
would be an enormous demand iOr food
stuifs and other commodities in Central
and Eastern Europe. This speculation
was not due to any important shortage at
present of actual supply This speculative
fever, which was not confined to foods
was greatly stimulated by the long delay
in the removal Of the blockade until the
peace treaty was signed at Versailles
There is plenty of evidence that this WIS
true Of foodstuffs in gluttcd ports in
northern Europe, where only meutrals
have the means to buy !"
Responding to an inquiry as to how food
speculation could be checked in America,
he replied:
attorney General A. Mitchell Palmer
is on the right track when he endeavors
TO break down speculation and seeks to
secure powers never possessed by former
administrations TO enable him to accom-
plish this step. The situation is one that
may well cause anxiety also from another
point of view. We are now coming into
flood of production of foodstuffs i'll the
Northern Hemisphere and will again have
great surplus in the United States. If
in the meantime, Europe has not found
credits to purchase the coming winters
supplies, we are likely to have a glut anC
prices may fall below the cost of produc
ton TO American farmers.
''The present high prices Of food are
not due to over exports to Europe from
the United States during the past year
That can be demonstrated by the fac
that we enter a new harvest with large
stocks of previous years production thai
at this time last year In fact, the stock
of many commodities are the largest WI
ever had in storage at this season. Ge
prices are very much higher If we ar
to account for the high price level on tn
basis Of over exports, we should have t
find depletion of our national stocks
Mr.. Hoover pointed out that the prob
lens involved in the speculative wav
were difficult to deal with, because it wa
worldwide and not confined to the Unite
States
The law Of supply and demand" h
continued, lis not working normally. an
probably will not for another year Will
prospective food supplies for the next /
months are about equal to the apparen
need, unstable political situations, a +,
curing shortage of shipping, shortae
of credit and a combination of either buy
ers or sellers will tend to create grea
speculative waves and may initiate price
to a point uncomfortable to the consume
or, in the reverse situation, unendurab
to the farmer
1--WE will have large surplus next yei
and must have a prosperous farming cor
munity if we are to have the world fC
in the future and maintain stability
home and abroad 1t is my own vie
that the situation would not have been
acute if the blockade had been remove
soon after the armistce was signed,
was urged by the United States COVER
ment. The Spectator would have had b