Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1919-01-03
PLANNING TO MAINTAIN
GUARANTEED WHEAT PRICE


recommended to congress today by
the Department of Agriculture and
the food administration
A memorandum sent to Repre-
sentative Lever of South Carolina,
chairman of the house agricultural
committee, made the following
recommendations
First-EXtension by congress be-
yond June /, 1920, of the date for
the government purchase of the 1919
crop.
Second Continuance of the food
administration grain corporation,
or creation of new agency to buy,
store and sell 1919 wheat that may
be offered to the government, and
charlottesville legislative pro-
visions to protect the government
against wheat or flour brought in
from other countries during the per-
iod of effectiveness of the guaran-
teed price and also to protect buyers
of such wheat as long as the wheat
is in this country and not consumed.
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
without saying that it must be made
effective
Regarding the extension of the
date of the government purchase, the
memorandum said:
1T would be impossible to carry
out the guarantee as it is intended by
June l, 1920, and, if producers can
not sell their wheat to the United
Staes before that date and are left
with wheat on hand, it will be felt
that the obligation of the United
States has not been carried out in
good faith"
The government purchasing
agency" the memorandum sets forth,
must have ample funds at all times
to purchase throughout the United
States at the guaranteed prices such
wheat of the 1919 crop as may be
offered to it, and also to provide
storage facilities to take care of the
same by lease or purchase of facili-
ties now in existence, or by building
additional facilities, or both.
THE application will have to be
on a basis to enable the guarantee
price to be maintained at all times
by purchase of wheat with funds pro-
yided by the government and without
relying on outside credit"
The food administration grain cor
Ioration is maintaining the price for
the 1913 crop with its capital of
$3.50, 0000 900 and It's credits, com
bined with the export demand for
wheat. The 1918 crop is estimated
at 917,100,000 bushels, and on No
yember 20, asst, the movement from
the farm amounted to 58S,000,000,
of which 254,O0O,000 was in storage.
1t will be observed, said the
memorandum sent to congress today,
that there is a very large amount of
the 1918 crop yet to be moved from
the farms, and it will take all the
resources of the grain corporation
and the most careful attention to
every detail to carry out the guaran
teed price for the crop of 1918. In
fact, if the export demand should
diminish, it may be necessary that
there be a further appropriation by
congress-"
The carrying out of the guaran-
teed price for the 1919 crops presents
much more difficult situation, t
was pointed out, because the winter
wheat acreage is about 100000
acres larger than that for 1919 and
ii an increase in spring wheat is
planted, the harvest of 1919 may be
in excess of that of 1918.
Export of 1918 wheat is estimated
at about 100000, a larger fig
ure than can be expected for the
1919 crop, because of shipments
from Canada, Australia, India and
Argentina. Domestic consumption
of the 1919 crop, including the seed
wheat reserve, the memorandum
stated, can not exceed 100000
bushels as a maximum. The possible
1919 crop was fixed at 100000
bushels, of which 90,000,000 would
be for seed requirements, $4,000
900 bushels for domestic consump-
ton, leaving 474,500.0O0 for export
The 1919 crop for export, 1t was
pointed out, might sell in competition
with that from other countries at a
price considerably lower than the
guaranteed price, which probably