The Washington herald., 1919-03-04
FARMERS RELY
ON S2.26 wheat
Holland Says Big Crop Due
to Demand and Pledge
Of Government.

Not for many years will doubt pre-
vail respecting the ability of the
farmers OF the United States to har-
vest enough wheat 10 meet any de-
mand OF the American people and
stlll have a large surplus for ex-
port Yet 1t Is only about twenty
years ago that some anxiety was
voiced by leaders, especially in the
transportation business, about the
ability of the United States to harvest
wheat enough to meet the yearly
needs OF the American people.
Large Surplus stsck.
The Department of Agriculture
reports that on February l the
commercial stocks of wheat in the
United States amounted to nearly
s24,Oo,ooo bushels. A year ago a
much smaller amount of commercial
stocks were on hand. This estimate
does not include the stocks held on
farms at the present time. II may
be that as much as 10000, 900
bushels Of wheat are now held IN
the United States. The emergencies.
Of the war. the stimulus afforded by
the government and the certainty OF
high prices resulted in large increases
in wheat cultivation in the United
States The results are regarded as
proving that this country can with
confidence rely upon the farmers for
a sufficiency OF wheat for domestic
use and in addition a large amount
Of surplus for export.
Big Crop This Year.
Washington authorities estimate
that. allowing for possible unfav-
orabIe climatic conditions, the
wheat harvest OF this year will be
somewhat in excess OF 100000
bushels. 1t is thought likely to
make a new record surprising the
amazing wheat record of 1915.
The government. however, has
guaranteed payment OF S2.26 to the
farmers for wheat delivered at Chi
CaEo. Therefore the government
stands obligated. in case the wheat
harvest Of 1919. is in excess of l.
OO1ooO.OOO bushels. to pay s2,2s.-
100000 for this wheat The farm
ers will get this money even
though the government is compeIl-
ed to buy all the wheat. because
on account OF wheat conditions in
other parts of the world there is
likely to be no foreign market for
American wheat, certainly not at
Sc-26 a bushel
Farmers Promised s2.es.
In any event the farmers Of the
United States arc likely to receive
from 5000 OO0.OOO to $50, 10000 for
their wheat harvest OF 1919.
Already some OF the leaders in the
produce exchanges in the United
States. especially in New York, are
speaking with some concern over the
situation which will arise when the
1918 wheat is harvested and the farm
eTs ask for their money. The common
belief Is that il will be a Erievous
error for the government to buy out
right all this wheat and then place il
in storage awaiting 4 market for it
Occasionally it is hinted that the gov
erplnCnt might be compelled to sell
the wheat at the market price, which
would he considerably less than s2.2i
a bush"l. thus putting up with I loss
perhaps Of S1.cO.O1C.Oo0.
Furthermore. il j. the common ne
lief that II the government of the
United States goes into the wheat
marketing business the result will tend
seriously 10 coTpIicate much Of the
business interests Of the United States.
wheat Price Food Barometer.
II il be true. a. is commonly assert
cd. that the market price of wheat is
a barometer by which all food prices
are tested. then high prices OF food
commodities must continue II the gov
ernment holds its wheat at s2.26 a
busheI. Various plans have been sug-
gested by which the problem could be
solved. One OF them was referred to
in this column some weeks ago. In
the fundamental principle upon which
this plan Is based there seems to be
a common agreement that it provides
the best way to solve this important
problem.
Establish Open Market.
\ day or two ago the Produce Ex-
change or some Of its leading mem
bers recommended the adoption OF a
plan which is based upon this princi-
ple. Let there be established a mar
kot. free and open. for American
wheat. That market would be GER
tain to name a price for wheat which
would enable US to sell our wheat to
other nations in successful competi-
ton with the wheat offered by Aus
puzzlinE details must be worked out
before a satisfactory market of this
kind can be established. But in a
general way the idea seems to be that
having established a reasonable mar
ket price then the farmers may mar
ket their wheat at this price and
obtain certificates which will show
that they have parted with their
wheat at the normal market price.
Fix Reasonable Price.
For example. it is said that a
reasonable market price might be
fixed at approximately s1.26 bushel
With that price established the
farmers could sell their wheat at
that rate and then with the certifi-
Gates they would be able to DEM
onstrate TO the government that they
had been paid s1.26 a busheI in the
open market so that the government
could be called upon TO pay them
only 81 bushel. in order to make
Eood its guarantee of s226 a busheI.
Government to Buy Crop.
In any event the government will
DO obliged to pay the farmers ap-
proximately s.OoO.Ooo.Ooo for the wheat