The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1919-02-28
GUARANTEED WHEAT PRICE.

GUARANTEED WHEAT PRICE.
One of the gravest problems that
will confront the government of the
United States during the coming year
is that of making good the guarantee
Of 1925 bushel for the wheat crop
of 1919. President julius Barnes, of
the Food Administration Grain Corpor-
alton, estimates that the surplus from
last years crop will all be out of the
way before the new crop is harvested
so that we may approach solution Of
the 1919 harvest unembarrassed by a
surplus carried over from the former
year.
Estimating an average yield on all
of the winter sown wheat acreage of
the country and assuming that the
spring wheat acreage will be increas-
ed in the same proportion it is not
improbable that we shall have crop
of close to 1,20O,0e0,OOO bushels.
Home consumption will dispose Of
600,000,000 bushels of this crop. 1t is
quite possible that there may be a
foreign demand sufficient to take care
Of 400,000,00o bushels, which would
leave a surplus of only 200, 10000
bushels. On the other hand the for
eign demand may absorb less than
200,00O,000 bushels which would
leave us with surplus of 400, 100000
whole wheat yield of the nation in
1917. Such surplus would present
difficulties that now appear almost
insurmountable The surplus itself
would. almost equal the actual storage
capacity of the country.
OF course there are so many fact
ors that enter into the situation that
it is impossible at this time to fore
cast what the crop will be or what
the foreign demand will be. The
maximum estimate for our yield as
sumes favorable weather conditions
for all of the crop is yet unmade and
much of it not yet sown. The maxi
mum foreign demand of 4O0,000,000
bushels assumes partial crop fail
ure in other wheat growing sections
of the world and also normal world
market. Should, however, the peo-
pies of Europe be unable to pay for
the wheat they would otherwise buy
our foreign demand would be very
materially reduced.
Looking at the question from al
most every angle, however, it seems
altogether probable that we are go
ing to have large surplus of wheat
from this years harvest. Under
normal conditions that would mean
greatly reduced prices for this cereal.
Be it remembered, however, that con-
gress has guaranteed the producers
price of 1925 per bushel and the
winter wheat crop was sown under
this national pledge. Preparations
for record acreage of spring wheat
have been made in reliance upon this
obligation. 1t is unthinkable that any
honest or patriotic citizen would advo-
cate a reputation of the nations
solemn agreement with the wheat
producers. The guarantee must be
made good even though in doing so
the national treasury suffer a heavy
loss. The cost of making good this
guarantee must simply be charged to
the expenses of the war. How to /
make good the guarantee should theI
normal and natural price of wheat be |
considerably under the governments |
figure, and that, it is generally |
agreed. will be the case, is the prob
lem that is causing Food Administra-
tion officials and the milers of the
country many anxious moments and
not few sleepless nights. The ma
ton must redeem its pledge and must
do it with just as little demoraliza.
ton of the natural marketing agencies
of the country as possible.