Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-01-02
TRADE INGRAM
DULLLAST YEAR
Market Checked by Domi-
mating Influence of Food
Administrator
EXPORT BUYING HEAVY

CopDr,Dht. 1918, NcU York Eronin0 Post, Inc.
Speaking In a broad. general sense,
surface conditions In the wheat trade
during the past year have been COM
parattvely calm. But, after all, this was
more apparent than real because ~ was
obvious that the market was simply held
in check. by the dominating influence OF
the Food Administration. Naturally, in
view of the fixing of the minimum wheat
price by the Government, and, or course.
an equivalent price for -four and mill
feed. anything resembling noteworthy
fluctuations was out of the question.
At the beginning Of the calendar year
ne wheat price remained on basis of
81 on the farms. with its equivalent of
s2;2o 40 in chicago: and Of s22s IN this
assumed then by the administration and
by conservative members of the trade
that these prices would be generally
considered equitable and satisfactory 10
practically all elements. Il is true at
first they were considered high by con-
sumers and small dealers or dstribut-
ors They were, on the other hand.
considered moderate, If not low. by the
farmer and agricultural interests gem
orally. As the year progressed consum-
ers and conservative citizens generally
began TO realize that price fixing was,
after all, decidedly sensible or provi.
had no such restrictions been provided,
speculation. generally so rampant In
wartimes when imitation predominated.
would have carried prices for wheat,
flour. and other commodities TO a far
higher level While the outcome must
have been gratifying to the intelligent
and unpre JUDGED citizen, II was not
particularly pleasing to the producer. As
4 result frequent attempts were made
tural interests In Washington to have
the minimum materially raised These
efforts were successfully opposed by the
Food Admin nistration and by the more
conservative members of Congress,
especially those from the Eastern dis
trcts. In opposition to the proposed
higher minimum II was argued that any
change would dlsorsanize the. plans
made by the administration and would
also be unjust to those farmers, rnillers,
etc. who had made contracts on the cs-
tablshed basis.
Old Crop Conditions
season there was such phenomenal
scarcity of old crop wheat that busi-
ness in IL was practically suspended, at
tention being almost entirely centered
on new to arrive. Naturally. therefore,
much Indignation was expressed because
farmers were investing on a minimum of
So i0 instead of 50. as this would make
he consumer pay 81 per barrel more for
flour. Consequently the President and
the Food Administration were opposed TO
the proposition. II was pointed out at
this juncture that the Allies had bought
loo,0OO,O0O bushels In Argentina at
81 40. The official report for. July was
ing reduced 30, ,ooO. 900 bushels TO b57,-
100000 and spring wheat 10000. 900
bushels to 1874, 900, making a grand
total of S91 ,000,0 900 bushels. or virtually
the same as In 1914. or the second larg-
est on record
To make matters worse. farmers re-
serves were the smallest on record, only
$3.50 900 bushels. Nevertheless. there
soon came more cheerful feeling In
the trade generally, partly owing to the
retoing of the bill to increase the mini
mum price to s2.40. This was consid- =
cred favorable for a bigger business,
with this proposition out of the way
1t was believed that farmers would be-
gin to make bigger deliveries, which as
sumption proved to be correct, as sosn
after farmers found that their efforts
had been abortive they had the good
sense TO make apprecably larger de-
liVerles. and as consequence receipts
at primary points speedily became ma
ierially larger As result millers
found il no longer necessary to pay
large premiums to secure wheat There
fore they quickly began to buy heavily,
as large quantities were needed imme-
diately because of the dangerous scarcity
of flour, and as result mills were run
AT full capacity day and night For
tunateiy, receipts continued even heav-
with striking rapidty.
This in turn brought about materially
larger buying for export. and also huge
contracts for flour, both for domestic
and export account. Unfortunately, the
more hopeful feeling was partly checked
by the receipt of discouraging advices
from Canada, where the outlook had be-
come decidedly gloomy owing to pro-
traCted drought.
a Near Flour Famine
II was estimated that the product ion
in the Dominion would not exceed 1861
600, 600 bushels, against early estimates
of $50 100000 or over. II was a highly
fortunate thing, not only for mllers but
for consumers generally that the re-
ceipts of wheat during July and August
were of unprecedented size being prac-
tically the largest on record. which per-
mitted millerS 10 make unparalleled con-
tracts. As a result of the near famine
of -four and the known enormous re-
quirements OF Europe, practically every
buyer from the smallest baker, and
even housekeeper, to the largest jobber,