Evening journal., 1919-01-20
GOVERNMENT WHEAT
PLANS AWAITED.
Possible Open Market for
1919 Winter Crop Seen
in West
CONFERENCE CALLED
TO DEVISE METHODS

KANSAS CITY, Mo-. Jan. 2o.-Millers
and grain dealers Of the winter wheat
belt are awaiting with keen interest
announcement Of the results Of the
Governments decision as to the plan
for handling the 1919 wheat crop. A
new plan, 1t is expected, will be formu-
lated and announced shortly, perhaps
before the close Of the present month.
Milling interests have Just learned that
q conference Is scheduled in. Washing
ton to devise plans for handling the
1919 wheat crop.
Emmett V. Hoffman. vice-president of
the Kansas Flour Mills Company, q
si000OOOO corporation, and formerly
executive manager Of the milling dlvi-
sion Of the Hoover food administration,
has gone to Washington from Kansas
City In response TO a telegraphic re-
quest TO attend such a conference.
Whether the United States Grain Cor
poratlon will be expanded 10 continue
It's present work In maintaining the
guaranteed price, which will be S2,26 a
Dushel In Chicago on the 1919 harvest,
or whether a new plan will be devised
are the two big questions the grain and
milling interests OF the Southwest are
asking. The expectation Is that a new
plan VIII be devised which will restore
competition and open market condl-
tions In the wheat and -four business
OF the United States, with the govern
ment paying the farmers the difference
between their returns and the figure
guaranteed them.
b The plan which II is believed will be |
formulated and adopted will, IL Is said, |
be baoed on the difference between the I
parity with Liverpool at local stations |
where farmers sell their grain and the |
guaranteed figure at those stations on |
the various grades. Thus, the price on
wheat at all stations In the country
VIII be permitted 10 fluctuate accord
Ing TO the law OF supply and demand,
with Liverpool, the International Brit
ish market, furnishing the basic figure,
which junction II practically performed
before the outbreak OF the European
war.
Thus, II there Is a shipping difference
OF 81 a bushel between Kansas City L
and Liverpool and the Liverpool price
on a given day Is equal to $3.50 q
bushel for No. hard wheat, the gov
ernment will pay farmers at Kansas
City rate points who sell that grade on
that day margin OF 6s cents a bushel.
This margin would be paid because,
with wheat in Liverpool at $3.50 a
bushel, and a shipping difference Of 81,
the Kansas City open market price
would be $3.50 a bushel, whereas the
guaranteed figure for No. hard on
this market for the 1919 harvest Is S2.is
a bushel.
II Liverpool rose one cent a bushel |
the next day, or II a drop In ocean
freight rates permitted an advance IN |
the Kansas City price, the government |
would be under obligation to pay that |
much less to assure for the farmer
the guaranteed returns.
Among the advantages Of this plan
for which high hopes are entertained.
In the Southwest, is that Il would pre-
vent conniving between local dealers
and farmers in marketing wheat and
presenting claims for excessive differ
ences to bring returns up to the guar
antee. This plan would each day enable
The government TO compute the value
of every grade Of wheat on the open
market at every station in the country.