The sun., 1919-06-11
CUT In WHEAT PRICE
OPPOSED BY BARNES
Grain Director Says Big Crop
Will Not Yield Surplus to
Justify Move.
"ONLY NORMAL RESERVE"
Dealers Hear That Reduction
Would Fail to Lower Fig
ures on Other Foods.


price would bring about a corresponding
fan In other food prices is an economic
fallacy. a theory not justified by the
events Of the last two years OF wheat
control. Julius II. Barnes United States
Wheat Director. told large gathering
OF grain men, producers and distribu-
tors at a meeting yesterday in the
Chamber OF Commerce.
Such reduction, he said. would be
justified only by a tremendous surplus,
and he quoted figures to show that de-
spite the enormous wheat crop OF L.
1oo.000,00o to 1900, 900. 00a bushels this
year, the domestic needs of the country
and the large demands from Europe
would leave only normal reserve.
In January there was n most insis-
tent pressure on a part OF the public
part uniformed of the world situation.
i believe-thatswheat should be markst-
ed at lower price a price named in
popular conception which would DO jus-
tined only by the most depressing ac-
cumulated surplus, when. as o matter of
fact, such surplus did not actually exist"
he said. such prices popularity sug-
gested would. in the present era OF high
structive OF production IL they could
have been artihclally installed. and would
have brought in their train great and
real disaster.
This phase passed, and in April and
Nay we saw a counter sentiment equally
strong that wheat supplies of the United
States would be inadequate to protect
our domestic consumption, and, with
no legally effective control Of prices,
wheat and flour advanced sharply. For
tunately by complete disclosure Of the
facts II was soon realized that we had
protected the necessary supplies at home
and could still discharge our overseas
obligations Since that time there has
been a gradual sagging back Of prices
to the basis from which they should
never have departed.
Experience Kills n Theory.
TO think that an artihcially de-
pressed price OF wheat would be decisive
In reducing prices Of other foods Is, in
my judgment. pure theory and not capa-
Die OF demonstration. said Mr. Barnes
later. Nothing In our experience OF
the last two years confirms it. Wheat
has been stable. without change, yet
during that period corn. rye and barley
have fallen far. far below and risen
far. far above the wheat level On the
contrary could the old play Of world
wide supply and demand be reinstated
wheat might easily soar to new heights
because as food It has a superior value
ard value, under present condition.
or desperate need. that may we'll give II
peculiar premium
MIR. Barnes stressed also the idea that
ali profiteering in food should be sternly
repressed: that tho old methods Of bar
gain and sale cannot go on under pres
ent world conditions and that the hand
ling OF food cannot be divorced from
sentiment. The obligation Of the for
tunate toward the unfortunate Is some
thing. he said. which must never be for
gotten.
ut is necessary that you and those
reached by you should have a clear un-
Outstanding OF the great need for inter
national helpfulness." he said, evidenced
In manner and on a scale which can
he made fully effective only by national
direction"
Mr.. Barnes instanced the help gwen to
Finland. the Baltic States. Poland,
Czecho-Slovakia. Jugo- Slovakia, Ar
menla. Austria. Germany and Rumania.
pushing back the shadow Of famine.
The world has called the Americans a
commercial people," continued Mr.
Barnes. IF 'commerciar means TO have
solve. the genius for organization to ad-
minister effectively and the generosity
10 capitalize character instead solely OF
property. then we have written a new
lustre around the title and we accept it
IN all pride"
Mr. Barnes said that some Of the high
cooperation built up in the conduct of
the Grain Corporation should never be
abandoned: for instance, the concentra-
What will happen to the seaports OF
this country when a system 10 restored
OF individual shippers matching indiyid-
ual lots of grain and -four to certain
Identical ships. each shipper struggling
for his share OF the facilities, and even
cumulatively heapins the strain upon
them in order to take the hazard of be.
ing left befiind?' he asked.
1T is~evident that. with the size OF
the crop now in sight. the pressure for
marketing will shortly force wheat prices
in this country back to the Government,
guarantee basis and that buying OF
wheat In large quantities at that basis
by the Government will be the decisive
factor In wheat prices OF this country
stabilizing them at that Government,
guarantee level
The resale policies then of such a
Government agency becomes at once a
matter of great public interest.
Asks Some Pointed Questions.
81. Shall that Government arenc,
supply the flour product of our whea,
TO our consumers at a lower price leve
than the fair price paid the farmer un
der the guarantee?
80. Shall the price be maintained II
our domestic markets and to our nom,
consumers. while we market our surplu.
in the worlds markets for a Lesser
price?
20 II we are prepared in case OF need
TO market a surplus for a lesser rrics
In the worlds markets. should We con.
versely force or accept a higher price
II the worlds markets will stand a high.
er price? That ~. II the worlds mar
kets will stand a higher price, Is II JUS
TO accept It?
-. Shall our domestic consumers b,
protected at not higher than the Gov
eminent guarantee fair price. or shall
our heme consumers also be required 4
pay a worlds price demonstrated high,
er than the guarantee?
.. Shall we attempt, as private mer
chants do, to feel our resale policy from
day TO day. subject to the influences o.
current crop deterioration or crop en-
larscment. or shall We as holders Of The
oeciding balance OF the worlds supply
forecast as nearly as possible the fair
price policy for the crop year period
ana adhere sturdily to that policy 70.
ssIuless OF the temporary presence OF
absence Of current demandr'
Mr. Barnes quoted statistics to show
the substance and wealth OF AGRICULTURAL