The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1919-08-22
CHEAP BREAD POSI-
Bile WITH GOVERN
MENT MARKETING
Export Buying Plan for Domestic
Trade Would Aid Farmers and
Consumers.

Government officials who were in
clined toward the theory that living
costs could be reduced by raid on
wheat prices, are made little more
thoughtful by the evidence of crop
damage. But the danger is not yet
passed. Not only the farmers who
have reaped small returns per acre
this year, but the whole business OF
the Northwest depending on farmer
income have reason to be on guard.
Cheaper bread is at most a small
factor in the cost of living. And the
nation can not afford to get it by
, forcing the price of wheat down be-
low cost of production. Such action,
as recommended iu not few high
places, would cut farm production
l newt year and so make the bread
:, problem worse than now.
MARKET REFORM NEEDED
| Cheaper bread, however, is pos
!. sible through thorough market re-
1 form. By such reform we can pay
;, the farmer a good premium over the
I minimum guarantee and at the same
e time take as much as 81 from the
% wholesale price of flour. Further
IS regulation OF baking would carry
If this saving through to the consumer
p, and lop off some of the waste and
e profteering in the retail and baking
&c trade.
in Figures presented by the milling
interests to show flour cost as be
ce tween SIP and $13 barrel are baset
n. on erroneous principles. They evl
On IDENTIFY cover the costs of the most in
rk efficient mills and added expense o
e. part-time operation. There is n
ty good reason why all the mills shout
ss get what it costs few lnefilclen
III mills to mill barrel Of flour. :,
The government is already shandl
he ing a large amount of flour for tn
ne export trade. There is no reaso
%. why IFS operations could not be e2
,r- tended to domestic trade as well.
G.. it balks at taking over the operation
rim of the mills themselves, it could Tin
is the cost of milling for the efficieI
we mills and allow each mill this SUI
DOL plus small profit per barrel.
mo BIG SAVINGS POSSIBLE
viii Such procedure would elimlna
some of the mills on the margin while
need SIP to $14 per barrel now al
the others by operating at near
IN full time would be able to redu
their present cost of production. WI
-b;s the market out Of their control al
ork with good profits obtainable only
Tho Ian ger milling operations the mi
I'D will be serving the people rath
III. n;i than holding them up. The juggh
,,+o lof brokers would likewise be eilm
inc ated ~ f''.'a''
.he That the government has been al
~ to buy -four for export at S9.4o
VA s1O.s0 a barrel indicates the possib
,hov ty of big savings. The millers' c.
, ,ros tention that this export flour is |
nc grade and therefore 81 to So cheal
tho than cur -four is probably unfoul
oil ed. Most of it is necessarily m;
r;ii from wheat which otherwise wo
th;s be millcd into domestic flour,
~ N. . practically all the wheat now CO
,r;es them more than the minimum:
tion. regular mill run OF wheat is $
v;ce posed to produce 1876 pounds OF g
tho -four and "a pounds of inferior Il
ha-,e and mil. feeds from 264 pounds
GAS wheat.
G h. The director of the Minnesota
oas peal board declared as a result
y I recent studies that the mills ct
y give us -four for $1,000 barrel I
s+ock $3.50 wheat. Other indepen'
Com stu lies have produced similar tigl
The threat Director Barnes OF
now gam corporation made two mo
tori. ago to sell export flour about
srvice cheaper than the prevailing MA
Nv of price indicates the extent OF
than regular profteering and it also s
y Wis the story about export flour beng
o Won poor for our market. =,
+ Won If congress will make this tf
of Earnes not only threat b
method Tor handling the whole
market, we can get cheaper !
and at the same time the farmer
LEU be paid a price which will kee
production next year.