The Washington herald., 1919-02-17
FARMERS WHEAT.
PRICE BATTLING.
Government Pledged to Buy
at$2.26P Per Bushel While
Other Markets Sag.

Although the farmers of the
United States may make in the year
1913 a new record which tells of
the number of bushels of wheat
they have gathered. possibly as
much as a billion and a half bushels,
nevertheless some considerations Of
somewhat serious character will be
created even though the harvest
should exceed billion bushels.
Many OF those who are looking well
into the future and who confess
they are greatly perplexed by the
situation as il is today. so far as the
relation OF the government guar
antee gf the price for wheat is con-
cerned, say that if there can be es-
tablished a normal market for
wheat. fairly well representing the
relation between supply and de-
mand, then the effect of that will be
highly beneficial. They say that II
will tend to reduce the high cost of
living. not only Of food products but
OF other necessary commodities.
However. they do not know what
the government will do when the
time comes for settling with the
farmers for the wheat they produce
this year. Apparently the govern
ment is in grave doubt about the
matter. although confessing that
the United States stands pledged to
pay the farmers S2.26 a bushel for
wheat delivered at Chicago.
How Is Payment to BE Made.
But how is this payment to be
made? That is a problem whose
solution many are trying to work
out. VIII the government do as Jo-
seph did in Egypt, when the Israelites
and Egyptians harvested great
crop OF wheat? He built great
granaries and stored the wheat in
them until the time came when 1t
could be fairly well distributed. But
he had only one country, and that
a small one. to care for, whereas
the United States is expected to eN-
port many million bushels of wheat.
Certainly the United States cannot
export wheat and charge for it at
the rate of S226 per busheL Com
petition would prevent that Inti-
nation comes almost daily to this
city telling of large surplus stocks
OF wheat in Australia and Argen-
tina and also quoting prices which
the owners Of this wheat will glad
. ly accept, which are about so per
cent below the price which the gov
ernment has guaranteed to the
farmers for their wheat.
Somebody VIII Lose.
Gratifying as would be a harvest
amounting TO 1.25O,OOO,OO0 bushels
OF wheat. and inevitable as would
be the effect of this great harvest
within a reasonable time upon a re-
duction of food costs. nevertheless
those who are of expert authority
say that there is to be a loss to
somebody Of many millions on ac-
count of the government guarantee
Of S2.26 per busheI of wheat deliv-
cred at Chicago. This loss will not
fall upon the farmers. because if
the crop which is now hoped for be-
comes a reality, the farmers will
receive many million dollars for
their wheat from the government
The loss will not fall upon the con-
sumers of wheat in foreign lands,
because if statistics recently re-
ceived are correct they will be able
10 buy wheat in Australia, Argen-
tina and perhaps elsewhere, and
pay no more than SIPS a bushel. or
a price approximating that figure.
The government itself will not re-
pudiate its contract with the farm
ers. at least without dishonor.
Therefore it is assumed that the
loss will fall upon the government,
or in other words upon the Ameri-
can people. They may be obliged
to pay in the form of taxes Ger
tainly as much as $4,000 900 in
order to enable the government to
fulfill the bargain with the farmers,
and they may possibly be compelled
to pay as much as $1,000, 900. 900. If
this estimate be correct, then the
loss is to fall upon the people of
the United States.
Opposed to Grannries.
Some who have given of late much
study to the problem are convinced
that it would be a mistake for the
government to put up large storage
granaries, although a suggestion OF
this kind seems to have been made
TO the Washington authorities. For.
in addition to other disadvantages.
action OF that kind would entail in
creased cost Furthermore. the i'm
preston is strong that the govern
ment itself would find it inexpedient
to undertake the business of market
ing wheat
Within a day or two suggestion has
been made of a plan which the more
II is considered, the more fayoraDIy
1t Is thought Of 1t is likely to be
brought to the attention OF the gov
eminent and Congress. 1t would re-
Guire some legislation and the CO.
operation OF the States. But this
would not be A complicated matter
When the States co-operated with
the government at the time of the
draft, there was facilitated through
the action Of local State and town.
ship boards the operation of the draft
This plan seems to have been the
germ of the suggestion which is now
made respecting the manner in which
the government might pay the farm
ers the agreed-upon price. Of course
the plan is yet in its tentative state
and some details must be worked out.
But in general the principle is this:
Let the States, acting upon a PROPOSE
ton Of the government, make choice
Of some one of its local officers in
each considerable community. He
would have authority to certify ia
the government the amount which
the farmers received for their wheat
in the open market. The plan would
work out in this way, It is presumed
The farmers would sell their wheat
IN the open market at the prevailing
price, say S125 per bushel. Then with
the proper receipt they could call
upon the local officer, who would GER
tify in proper form to the fact that
the farmer had already received in
the open market 81 25 per bushel fol
his wheat. Having this certificate in
hand the farmer could 90 either tc
the Federal Reserve bank or some
other authority named by the Treas
ury Department and be paid, not s.. 3