The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-04-26
Price of Wheat Stable
New Director Feels No Appre-
hension. Big Crop in Demand

New York, April 21.-Despite main
tenance Of the government guaranteed
price in the face Of an American
wheat crop which will probably break
all records, domestic consumers will
not pay more for the product during
the coming year than the rates con-
currently accepted from foreign buy
ers, julius H. Barnes, newly appoint
ed federal wheat diretor, assured the
public in statement here tonight
outlining the policy Of his admins
tration.
Mr.. Barnes termed ,unsound any
governmental scheme of artificial sub
sid :zing and thought it quite possible
with the greater part of Europe look
ing to America for food and the crop
prospects of the allied countries even
poorer than last year, that little in
road, except of a temporary nature
would be made on the billion dollar
fund provided by congress to carry
out the farmers guarantee Of $2.26 a
bushel.
However, should there be a surplus
production of wheat, he said, the ma
tional treasury would be protected as
far as possible in making good the
difference between the guaranteed
and market rates by determination OF
world price for the sale OF the sur
plus. At present the world price ex-
cceds the government price. no"
much Of the federal appropriation
would be expended the director stat
! ed, would depend on the harvest as
would also the government policy in
! buving and selling portions OF, the
crop. Until facts concerning the 1913
Weld were more generally known, he
+ added, no definite plan of operation
could be intelligently adopted with
the result that the administration
was working out number Of other
policies.
In relation to federal acquisition Of
wheat, which he predicted would be
carried out on an extensive scale IN
enforcing the farmers guaranty, par
ticularly if the world price should be
lower than the government basis, ef-,
fective until June /, 1920, Mr.. Barnes
said three plans were under consid-
Grafton: Direct dealing with the farm
crs, which would bring the director
into contact with 100000 persons;
purchasing through the country grain
exchanges, which would necessitate
keeping 10000 accounts, and buying
through the mills, which would re-
duce the number of clients to 1000.
: AS to the sale of government ac-
uuired stocks, the director said that
congress, with clear conception or
: the difiulties of the coming year,
had delegated to the president large
: powers and discretion, which would
be at the service of the wheat admin
istration. The sale policy, he stated,
would be decided by factors develop
ing with the season. and the license
power would be used, if necessary, to
control trade practices so as to Sc
cure proper reflection of the guaran-
teed prices reaching all classes of
producers.
Accepting the department Of agfi-
cultures estimate of the largest win
ter crop in history and making allow
ance for unfavorable weather condi-
tions which had held the spring crop
back two weeks, Mr.. Barnes predicted
that Americas 1919 wheat yield would
tax to the utmost the country's stor-
age. railroad and Shipping facilities.
He expected reduced wheat and wheat
products prices within two months
they are now above the government
fair price level, owing to the heavy
export demand-but saw little chance
of a return to the five cert loaf OF
bread. The cost of -four was only 80
per cent. of the cost Of bread, he
said, and with wages and other fac
tors of manufacture at high levels
there was no present Likelihood. that
the price would be cut in two.
Mr.. Barnes denied reports that,
government agencies were urging
farmers to cut down their acreage Of
spring wheat and said he regarded as
fortunate in view of food conditions
throughout the world, the probability
that America would produce this
wear the greatest crop ever grown. The
1918 harvest-second largest in the
nations history-was consumed or
pledged. he stated.
IT. would be we'll for Americans to
appreciate, Mr. Barnes asserted, that
five ravaging years" had created an
unparalleled world food position,
which can not be remedied at once.