The Washington times., 1919-03-07
PLAN TO CUT
FLOUR PRICE
|. MAYRESTORE
NICKEL LOAF

The nickel loaf" may soon return
Ito the market basket of the house
wife, Food Administration officials
said today.
They are working on a plan, said
Ito be nearly ready for submission
ito Herbert Hoover and President
Wilson, to utilize the billion-dollar
wheat price guarantee fund for de-
screasing the price of flour to bread
makers and allow the world shortage
and the great need of wheat to keep
up its price to 1925 for the farmer.
The tentative plan, according to
officials, embraces the taking over
of the -four supply of the country
at a nominal profit to the millers and
selling it to the public at a loss Of
81 a barrel They have no doubt
sthat the foreign demand for wheat
will be sufficient to keep the wheat
price up to the Governments guar
,anteed figure.
Flour - n Barrel.
Officials state that, with wheat at
S2.2s a busheI the flour can be bought
fairly by the Government for IS
barrel, after allowance has been made
for all the by-prodUcts saved in
making the -four and for fair profit.
But in order to insure the scent loaf,
the -four must cost not more than Sc
q barrel TO the bread makers
The plan considers the Government
absorbing this loss OF 81 a barrel, az
= total cost Of S5OO,OO0,OOO. Thus the
consumer would get the 5-cent bread,
che farmer the 1925 price. and the
Governments appropriation be used
10 decrease the bread price, instead Of
boosting the wheat price. officials
point out
This Years Crop.
The Food Administration and the
Department Of Agriculture in estimat-
ing this years stimulated wheat crop
place the figure at about 1.2OO. 100000
bushels. OF this probably 65O,0OO,OOO
bushels will be needed FOR domestic
use, allowing about $50 100000 bush
els for export and carry over. About
soc 600, 900 bushels can be safely ex-
yrorted. il is believed, leaving the rest
for seed and other carry over needs
The world wheat reserve of 400
10000 bushels which was unavail-
able because of shipping needs, and
which has since been pouring into
hungry Europe will be exhausted
Dong before the present crop is mar
keted. officials say. In addition
about 300, OOO 900 bushels in various
localities which has been held as a
carry-over is already used up. Many
of the large wheat distincts in Rus
STA, Roumania, Austria, Germany,
and parts of Italy and France this
year will produce only a small por-
ton Of their normal crop, it'is stated. !
Can Sell at Own Price.
So officials have no doubt that the /.
American export supply can be sold
at any figure asked for it. Great
Britain is now buying some wheat
at about f125, but this is on con-
tracts which have been held up be- /
cause or lack Of shipping The Liver /
pool market cannot again control the 1
world wheat price until there is
world surplus OF wheat, officials be- ,
lieve.
IF the United States were to allow 4
the market price of wheat to drop /
TO 1925" one prominent official said 4
Today. I'VE could not expect to get 4
much more in the world market. This /
would mean we would have to ad- (
vance $3.50 100000 to the farmers of 4
this country. and in addition would .
lcse S3N0. n00. 200 on our exports, be-
cause of the guaranteed figure. BY
2 his method nothing would ho ac- }