New-York tribune., 1919-05-07
Barnes Warns
Traders Against
Overspeculation
Wheat Director Intimates He
Will Stop Trading in Fu-
lures if demonstrated
Abuse Should Arise''

CHICAGO, May 6.-Julius H. Barnes,
National Wheat Administrator, said in
an address to-day, to members of the
Chicago Board of Trade, that the act
establishing the food administration
gave authority to control trading in
foodstuffs on exchanges to the extent
Of prohibiting future trading al
together. He said the act was still in
effect and that his duty was impera-
tive if demonstrated abuse should
arise.
A conference will be called May 13
at New York between representatives
of millers, bakers and grain traders
and others at which certain trade
agreements will be entered into, Mr..
Barnes announced He added that if
the prices of flour did not sharply re-
fleet the real situation in regard to
supplies, the United States must short
ly return to the 1917 food regulations,
which allowed only thirty days supply
to be held on hand. He did not want
to do this, however, he said.
Mr.. Barnes questioned frankly wheth-
er fuctuation in corn prices, such
as took place in Chicago yesterdays
rapid break of ten or twelve cents, fol-
lowed by a quick reaction of five or six
cents--was not clear indication of
speculation on so large a scale that it
was overbalancing legitimate functions.
Sympathizes With Traders
Before the government drafted him
Mr.. Barnes was keen trader himself,
and phases Of his speech indicated that
he sympathized with the feelings of
those who had been hit. Nevertheless,
he warned them that with "half the
world in chaos" as he phrased it, busi
To one, like himself, who had visited
Belgium, the sentiment came over
whe elmingly.
81 know that the Food Administrator
relies on the officers Of this exchange,
and others, to protect this situation in
the public interest, and l am sure he
will not look in vain," said the~speaker.
at has been in my mind for some
time, and at conference in New York
ranged with advisory committees from
the grain trade, from the milling trade,
from the -four jobbers and bakers of
this country, among others, shall dis
cuss the tabulation of a weekly report
of authentic and exact information to
be made public. l do not see why, for
instance, the baking trade and the job
bing trade of this country should be
excited by entirely erroneous state
wheat and flour when it is not the
condition.
"As for the coming year." he con-
tinued, 81 have a great desire that the
duties of the wheat director may be
discharged, not by compulsion or the
use of the authority vested in the
law, solely, but by cooperative agree
ments with the various trades affected.
l hope to work out voluntary contrac-
tural relations between the grain cor
poration, the milling trade, the grain
trade, the flour jobbers and the bakers
such as will protect fully the proper in
terests of both producer and consumer
and afford a fair field for legitimate
initiative and energy, and an outlet for
legitimate ambition.'
Can't Control Maxima
The speaker said he wished to make
is clear that the wheat director has no
authority in law to control maximum
prices of wheat, but he must make eff
fective absolutely the guaranteed pro-
ducer price.
When Mr., Barnes concluded there
was applause and then a rush back to
the trading pits. The price was nervous
Tor few minutes, at first dropping
half cent or so and then, after q
little hesitation the price recovered and
attained the best of the day The gen
eral opinion seemed that the bearish
rfereences had been fully discounted
by yesterdays decline.
Corn closed strong, 3A to 4Hc net
higher, with July s169A to Si.69h.
and September s1.63% to $1.637h. Oats
finished unchanged to asc lower. The
outcome in provisions was an advance
ranging from 2 &c to soc.
Oats were governed mainly by corn.
After opening a cents off to like
advance, with July 70A to Tic. the
market f1uctuated both sides of yester-
days finish.
Hogs jumped in price to-day to the
highest level ever known, $2135
hundred pounds.
The reason for the upward flight
or hog values was that the total num-
Der Of hogs received at the Chicago
stock yards to-day was much smaller
than had been expected and supplies
were also reported scanty at other
Western packing centres. Unfavorable
weather for ploughing, planting and
hauling corn tended also to lift corn
prices.