The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-07-30
KEEP FAITH, BUT
REDUCE PRICE OF
FLOUR, IS PLEA
Cincinnati Banker Advocates
Lower Price to Consumer
Pledged to $2.26 Wheat.

CINCINNATI, O.. July 30.-The
price of wheat should be reduced to
the consumer but Uncle Sam must
keep faith with the farmers, hundreds !
of thousands OF whom have turned
much Of their energy and land to the
production of grain.
They now are reaping the golden |
harvest, as wheat Is beginning to flow |
to flour markets and export centers. |
The crop is going to be the biggest |
ever known, according to government |
reports. Crop experts figure 1,16l.- |
100000 bushels will be grown this |
year. This, says a business review
published by the National bank Of the
Republic Of Chicago, lis an amount so
huge as to threaten seriously the abil-
fly Of the country to store it."
But how and where does the gener-
al public come in as the family sits
down to partake Of it's bread-the staff
OF life? During the war folk made
no objection when wheat substitutes
went into bread manufacture, when
loaves shrank in size and prices con-
tinued to go up.
Charles A. Hinsch, president Of the
Fifth-Third National bank, Of this city,
who was president Of the American
Bankers association last year, looks
into the price Of bread, and he sees
one possible solution-and a tremend-
ously big one at that-in action by
the United States Grain corporation
Suggests v. S. Bear Loss.
Congress has clothed some one
with authority to reduce prices" said
Hinsch. II think it would be a fine
move II the government lowered the
cost OF wheat in this country by taking
the loss itself and charging it up as a
war loss I do not know exactly how
this should be done, but out of the ST.
oOO,OOO.OOO appropriation by congress
the difference in the present guaran-
teed price of wheat and a new one
figured on the natural law of supply
and demand could be taken.
THE guarantee of the government
has been disturbing factor and while
1t was justified during the war there
no longer is need Of a'guarantee But
we must keep faith with our agree
ment with the farmers, which was
made to stimulate the production of
wheat. II the above plan is carried
out, 1t will enable not only wheat, but
all other commodities, to respond to
the natural law Of supply and de-
mand"
Hinsch believes financial interests
Of the country will approve the lower
wheat idea based on the law of supply
and demand and that suggestions of
great value will be offered to the gov
ernment especially by bankers who
are In close touch with the great wheat
belts in this country.
Faith Kept With Farmer
The plan favored by Hirsch Is for
mo -
of wheat, keep its guarantee to paw a
fixed price to farmers, and make up
the difference between a new selling
price and the minimum Of 1926 a
bushel pledged to farmers to spur pro-
auction as war measure.
Hinsch points out that the Grain
Corporation, owned and financed by
the government, has an appropriation
Of $1,000, 100000 given by congress to
assure a fixed price to farmers The
government knows about every car.
load of grain that goes to market
Dealers are licensed, operations of
commission men are scrlltinized close.
ly and the Grain Corporation has no
trouble whatsoever in figuring down
to cents the distribution Of the mil
lions of dollars that are handled in
the wheat business.
In brief, when a wheat grower sends
his grain to market he knows he will
get at least S226 for every bushel
Probably it will sell above that figure
All the farmer wants to be sure Of
says Hinsch. is that he is going tc
get his s226.
Corporation Has Billion
Personally he gives no detailed
opinion for publication as to how the
proposition should be worked out, bu
emphasizes that the Grain Corporation
has billion dollars at it's beck, and
abve all. it has authority.
1t requires about 41e bushels o
wheat to produce barrel of flour
From a barrel of -four 800 pount
loaves OF bread are made. Bread Il
selling in Cincinnati at a chain sys
tenn of groceries at the rate of Go
cents pound. In some places it il
higher.
With wheat bound to give the farm
err a return Of S226 a bushel baker
say the price Of bread cannot be low
cred. If ii were reduced, say to 81 -
q bushel. that would be another mat
ter, they say
Hinsch makes no suggestion a. t,
how much the price ought to be Gu
down, but 81 1000 900 900 Is a prett,
substantial sum, isn't it? And remem
her the United States Grain Crpora
ton has that amount of money jing
ling in its hands right now.
NRay apparatus has been designe,
for detecting defects in concrete ship
as they are being built and to fin,