The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-22
WORLD MARKET
T0RULEBUYING
OF WHEAT In US.
Director Barnes Puts For
eign and Home COnSum-
ers Oh Equality.
MAY USE LICENSE POWER
No Government Substituting,
but Farmers Must Get Their
1926 Guarantee.
MAY USE LICENSE POWER

julius II. Barnes, newly appointed
United States Wheat Director, an
noupced yesterday that IN case Of a
world wheat surplus domestic con-
sumers should not be compelled to
pay more for wheat than prices con-
currently accepted from foreign buy
ers. He said the Government must
stand the difference between the fixed
price of $2.26 per bushel guaranteed
to the farmer and the world price IL
the latter price falls below the Gov
eminent price.
The wheat director cited these three
lust and right" fundamentals as a
basis for dealing with a national guar
arteed price of wheat:
First: The guaranty is clearly in
tended for the benefit of the producer
and the license power may be used
to control trade practices so as to
assure the proper reflection of the
guaranteed price reaching all pro-
ducers
Second: In the event of surplus
wheat production domestic consum-
ers shall not pay more for wheat
than prices concurrenly accepted
from foreign buyers.
Third: The national Treasury
should be protected by the -ealiza-
ton of world price, as far as it can
be determined, and any governmental
rolicy Of artihcially subsidlzing is
ursound."
Food Position Unparalleled.
Five rawaging years have created a
world food position unparalleled" Mr..
Barnes said. ut cannot be remedied at
once. We cannot build a wall around
our own fortunate country and refuse
to share our plenty with the unfortunates
of Europe.
THE community shop the whole
saler. the railroads that distribute and
the banks that facilitate payment are
gone or disorganized in the war areas.
Trade revives slowly, and whether we
would or not Government aid must be
extended until trade can walk upright
again. 1t would be we'll for America 20
have a full appreciation of this
The wheat crop of 19lS-the second
largest In our history-is consumed OF
pledged. Fortunately, outside of the
direst weather conditions, America may
confidently except in 1919 the largest
wheat crop ever grown.
, Congress has made effective a
national guaranteed price of wheat. Ii
redeeming that guaranty to the pro
ducer, we shall undoubtedly acquire
large quantities OF wheat. Its resale
policy is one of great public interest
My conception is tha- tnac policy can
not be intelligently decided until cror
out-turns are more definitely known here
and abroad. We shall be prepared 10
act on one OF several policies. Con-
gress had "A clear conception of the
difficulties of the coming year. and dele
gated TO the President large powers and
discretion"
Peace should End Fixed Prices.
In reply to questions Mr. Barnes de
clared the price of S2.26 per bushel fol
wheat, as guaranteed by Congress, is g
fair price basis fixed by n fair price
commission, an independent body OF men
II was framed under war conditions. liz
said and should he terminated at the
end Of the war. Under the law the fixed
prize will terminate on June l. 1920. HI
said the present world price is above the
Government fair price value, and whea
Is being sought by would-be purchaser
to-day beyond our capacity to supply
He added that there is no prospect tina
tho allied countries will raise as muc'
wheat this year az they did last year
There are large accumulations of whea
in Australia. he explained but 1t is go
ing fast, India. with famine on, hav
ing contracted for % 900, 600 bushels.
1T looks" he added. AS IL Americi
would have to bear a considerable str.ail
in feeding the world this year. GU
greatest problem will be in getting ship
TO carry the food"
Mr.. Barnes said he thought the pric
Of -four would be lower in two month
than II IA to-day, but admitted he "coul'
not feel very enthusiastic over getting
five cent bread back"