The sun., 1919-08-05
FEDERAL PLAN LAID
TOCURB PROFTTEERS


Board was made a member OF the con-
ference, II 10 understood, so that ON
Gals who have participated will have
the benefit Of his views as to the infiu-
ence of currency imitation ON prices.
Retirement Of the gold supply during
the war, heavy Government borrowing
ana the necessary issuance of large
quantities of Federal Reserve notes all
had an influence in bringing imitation.
Whether this can now be remedied to
an apprectable extent without q dan
gerous reflex on general business and
financial conditions is regarded by off,
Gals as q very intricate question.
The Governments relations to and the
extent Of Its responsibility for the high
cost Of living was discussed for an hour
and half In the Senate today. Senator
Gronna IN. d. attacked the Govern
| ment Grain Administration. charging
that II has been conducted with the view
to making profit from It's handling of
the wheat crop.
Farmer shown as Loser.
Not only this. but the Senator charged
| that the grain corporation has not ex-
| ecuted its purpose Of insuring that the
farmer should get the price per bushei
bbaf 10 MIN Dy inc government.
II KNOW" he said, that the farmer
producing the wheat received for some Of
| II as low as s1.13 per bushel. when he
was guaranteed on a basis Of s2.20. It
is true that this wheat at $2.2o was
I graded low. but that was no adequate
reason for such cut in the price.
What became of that S1.13 wheat?
| Who got the benefit OF II in the lower
price Of flour? The fact Is that that
wheat. though It was light in weight.
| contained Of nutritive element pound for
pound--and 1t was bought on the basis
| of weight. no cubical measure-con-
tained practically as much -four value
as No. 1 wheat. The Department OF
Agriculture has made no effort to deal
with this situation as to grading. Con-
| gress did what It could to prevent such
discrimination. but I charge that the
Department did nothing whatever"
The Senator pointed out that the
Grain Corporation had managed. in Its
operation, to earn a profit. He referred
to correspondence of Julius H. Barnes.
manager Of the Grain Corporation.
| wherein II was set worth that a profit
OF about s23.500.ooo had been earned on
the turnover Of the years wheat crop.
| after paying all expenses OF the adminis-
tration. While Mr.. Barnes seemed to
regard this as a creditable result. on the
ground that II was worth while to make
such a transaction earn a profit Mr..
Gronna decidedly disagreed. He insisted
that the Grain Corporation was formed
simply for the purpose of administering
the guarantee. insuring that the farmer
received the price due to him in accor-
dance with the law, and that there should
have been no profits. The farmer and
the consumer should have had all the
benefits there were from the guarantees
of a price.
| Wants Trade Checks Ended.
Senator Smith Is. c. declared 1t was
the d1ty of Congress to remove as SCOT
as possible all the controls over buesi.
ness and let II take its NATURAL course.
ut is time to discourage the disposi.
ton of people to run to Congress seeking
a panacea for all the evils of their bust
ness and to encourage them to handle
their business on their own responsible
.ty, as they used TO he accustomed &c
do Let the currents Of trade find theiI
natural courses and levels" he said
I'VE hear much about the high cost
J of living. but after watching from my
hotel window the streets of this city
crowded every moment Of an evening
with automobiles conveying pleasure
seekers. burning expensive gasolene.
am Impressed that our trouble Is rather
with the cost of high living"
II wonder" suggested Senator Nc,
Cormick (nL). III the Senator will moi
, admit that the costs Of extravagan'
Z government enter a good deal into thu
? situationT'
: THE extravaganza Of government
during the war were very real, and un
/ der the circumstances they were to {
large extent excusable," replied Senator
D Smith.
? Senator McCumber IN. d. argue,
/ that the guaranteed price of wheat wa
: not a drop In the bucket of the country
, living costs.
Z winter wheat -four is quoted fror
ds1125 to $12 the barrel" he said. AN
spring wheat flour at from s12 to s12.5t
: A barrel of flour represents about tn
I. annual consumption Of one person. a
h an expense not over $14 per capiti
4 That makes about 81 per month. or
\ cents per day per capital. for the sta
\ of life Is any other necessity so chea
a as that7
why all the noise we hear about Il
4 cost OF flour and nothing said abor
4 the cost OF clothing. OF medicines. whic
have borne three or four times as muc
increase as -four: why don't some OF l
stop and compare the -four bill. at {
l3h cents a day, with our cigar billsT'
from constituent who proteste
against the unfairness OF the farm'
\ working eighteen hours day and tai
ing his chances with the fight again
y the chinch bug and the weather. WIFI
organized labor worked six hours ar
had high wages fixed for It by law.
n Editorial Read Into Record.
Senator Pittman (Nev.) interrupt,
at this point to ask the privilege
reading into the Record with his q
thusiastic approval an editorial fro
THE SUN Of Sunday last. He thoug
II stated with remarkable aptness q
~ case that needs the country's attentic
of Just now. The editorial follows:
70 The Washington Administration
X screwed UP the cost Of all food when
ot IL nailed the price OF wheat high
4 above It's real value. We mean, OF
II course, when 1t nailed up that price
lie TO the consuming public.
Because the United States Gov
'r eminent must buy all the farmers
ID wheat on the basis OF S2.26 the Wash
~ ington Administration IL trying to
III sell that wheat to the American con-
r sumner at grossly inflated figures. n
10. II there were a wheat famine. when
he there will be on its hands at ioas'
% half q billion bushels Of wheat which
this country cannot consume and the
ID greater part of which the Govern