Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1919-03-10
DISCUSSES QUESTION OF LOSS

Washington, March q - Herbert
Hoover, United States food administra-
tor. in statement here today as to
whether the United States government
would lose the billion dollars appropriat
ed To support the guarantee for next
year wheat crop. said:
The question of government loss. if
any, VIII revolFe around several factors
First, whether we or the world will have
any surplus from the 1918 crop to carry
over INTO next year: second. what the
supply and demand will be for the 1919
crop. and third, whether the govern
ment should take a loss in order to lower
the price of bread
AS to the supply and demand for the
1918 crop, changes in the world demand
during the asst month. shown by wide
spread investigation of the food needs
OF Europe, indicate that there will be
no surplus to carry over into the 1919
crop. The India famine has proved so
serious that large part Of the Aus
tralIan wheat must 60 there at once. In
addition. considerable proportion Of
the Australian supply which has been nil
ing up for years has spoiled.
$3.50 a BusheI Possible.
The needs of Europe are larger than
our previous estimates. Altogether the
balance of the supply and demand for our
present wheat now looks as tho we
might see wheat at $3.50 a bushel. as it
was in the spring of 1917. if there is a
free market in wheat and uncontrolled
prices. 50 much for the 1918 crop.
There can be no free market of 90 per
cent of the worlds export. as wheat is
controlled by the wheat executive in Lon
don.
AS TO the 1910 crop. it is, of course.
too early TO come to any precise conclu-
SION Our crop looks anything from 10
10 20 per cent greater this year than
last wear.
Before the war Russia, India. Bul-
garia, Serbia and Rumania all exported
large amounts of wheat. The war famine.
loss Of seed and lack of fertilizers. and
anarchy, have cumuated to turn these
countries into importers Of wheat for
the whole of next year Central Euro
pean seeding will be below normal The |
Australian 1919 crop is small; the Ar
~ontine crop is no larger than that Of
Europe. Altogether it would appear now
that there wonld he no bread to waste
in any quarter of the world for the next .
year. even if the world had the money |
to pay for it. and if the bolsheviki did |
not get more territory.
May Eliminate Loss
''Therefore. to all present appear
ances it should be possible to market the
whole of next wears crop without loss +
to the government.
"As to whether the government will /
take a loss below the price 7
Of S226 a bushel in order to lower the I
price of bread is matter that will have
to be determined by the officials of the
day.
1T appears to me that the world
price of wheat, if there is free market,
may be above $2.26, and in any event
such a loss would be direct subtrac-
ton from bread prices just as it is paid
now in European countries. There are
very great technical difficulties in the
way Of such procedure in the United
States. Furthermore. ! believe that to
lower the price of flour by 80 per cent
would only reduce the price of one
pound loaf Q or 10 cents, as at present,
10 Z or cents, because too large pro
portion of the increased cost Of a loaf
since the war is due to higher wages.
costs and the cost of
,ther supplies.
''These problems will, moreover. need
o be solved by someone else, because
neither myself nor most of the men in
he food administration will be able to
continue in the service of the govern
nent after next July. We. also. must
.arn living"
Asked concerning certain criticisms
rising from the government having
ixed the price of wheat, Mr. Hoover
aid he originally opposed the fixing of
he price and afterward on every occa-
ion when congress endeavored to raise
he price. He added that he considered
!, (Continucc on rage Two)