The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-26
GRAIN MEN EVOLVE
NEW WHEAT PLAN
Would Have Conference Fix
Price to Be Paid to
Farmers.
U. s. TO ADD GUARANTEE
Growers Would Then Sell in
Open Market, With Con-
troll Eliminated.

Grain dealers on the New York Prod
uce Exchange and the Chicago Board
OF Trade have been discussing what
they describe as a wise, workable plan
for handling the wheat crop on which
the Government 10 obligated to pay the
growers s7.36 per bushel, although there
Is more wheat in sight than the world
needs and wheat in other countries is
selling far below the fixed price in the
United States
The main features OF the suggested
plan are the fixing Of a fair and equita-
BILE settlement price by a conference to
be made UP OF all the interested parties,
the payment to wheat growers of the
difference between this price and the
guaranteed price, the ownership OF the
wheat by the farmers and not the Gov
eminent, the doing away with Govern
ment control and restrictions. the open
ing UP Of the regular markets and the
restoration of the workings Of the law
ofsupply and demand
What the Plan Involves.
The plan as outlined by a well known
Produce Exchange man yesterday is as
follows:
"A conference should be called by the
Committees on Agriculture in Congress
in which all the interests are repre-
sented- This would include representa-
tives OF the Government, farmers, mill
lers grain dealers of the different big
grain exchanges and consumers. That
should fix fair and equitable
value for wheat based on the markets
OF the world. price having been fixed
by this conference, then let the Govern-
ment pay the farmers the difference be-
tween the price fixed by the conference
and the guaranteed price Of s2.26. This
could be done through the machinery OF
the Department OF Agriculture.
The farmers would then own their
wheat at the price fixed by the con-
ference. having been oaid the difference
between that price and the s2.2s guar
antee. After the Government had es-
tablished the settlement price they would
no longer be interested in the market
the only Government function then being
settlement with the farmer through the
Department of Agriculture. As soon as
the settlement price was fixed the grain
corporation should be dissolved and the
market opened up, leaving the law OF
supply and demand to regulate tho
price.
Extended credits have been contem-
plated by the Government to some OF
the allied nations for the purchase of
food. Instead OF the Government maxi
ing the shipments to these countries the
credits for those countries could be es-
IA blished with New York bankers and
tho representatives of those countries
buy their own supplies here In the open
market.
I'm the event that legislation could not
be enacted making a settlement price
with the farmers then the only feasible
plan for handling the next crop of wheat
would be through the grain corpora ton,
which should be clothed with plenary
powers for handling wheat and wheat
products, but of no other grain.
Danger Pointed Out.
"In the event Of the crop being ham
died by the grain corporation It would
be very dangerous to lot the wheat flow
back into onrmal channels and open up
the market to the speculative public. the
Government paying the farmer the DIFF
ference between the price at which he
sold and the guaranteed price.
I'm normal markets the farmer Is the
main factor in stabilizing prices II the
market declines below the farmers idea
OF values he stops selling Receipts fall
off sharply and the market rises. On an
advance in the market consistent with