The Barre daily times. (Barre, Vt.) 1897-1959, 1919-08-15
GUARANTEED WHEAT
PRICE IS DEFENDED
State Commissioner Of Agriculture Brig
ham Predicts That Consumer Will
Be Saved Billion Dollars at
the Exnense OF the Producer


There is considerable criticism in some
of the papers of the state regarding the
government guarantee of wheat prices
and the discussion is of such a nature
that the consumer may gain the impress
sion that the present high prices Of the
necessities of life are attributable to
this cause, says i. s. Brigham. Vermont
commissioner of agriculture. Therefore,
a brief review Of the governments con
troll of wheat prices may serve to clear
up some Misunderstanding which seem
to be prevalent,
In the fall Of 1915 and the spring of
1917 the farmers Of the United States
sowed crops of winter and spring wheat
which they expected TO sell in the worlds
markets at price determined by the
worlds relative supply and demand of
this commodity. In times past large
world wheat crop had brought the pro-
ducer prices ruinously low; on the other
hand, short crops had brought higher
prices and recoupment The crop Of
1917 was short and the demand large
from the countries engaged in the war
with Germany. In the spring of 1917
May future wheat sold for S3.lS per
bushel on the Chicago market, when
trading iii futures was suspended. In
August, 1917, the president, under an
thority given him by the food control
act appointed commission of ii men
to determine what was fair price for
wheat. In the words of Mr.. Hoover,
These men came to the unanimous con
clusion that $3.50 for No. | northern, at
base markets, represented fair average
profit to the farmer and the food ad.
ministration was directed by the presi,
dent TO maintain that price"
Although this price was 81 per bushel
below the price for which wheat of the
1917 crop had already sold and although
Mr., Hoover stated in public address
that he agreed entirely with the conten.
ton of some farmers that they would
have received IS and perhaps $40 per
bushe for wheat had it not been for the
restraints imposed by the government.
there was nevertheless no substantial
body of complaint from wheat rasers,
even though in some sections Of the eotin.
try the fixed price resulted in an actual
loss TO the grower, and at certain periods
OF the year farmer who sold his wheat
could not buy back corn or barley for
cattle food at the price which he received
for his wheat. Government price fixing
Of wheat in 1917 probably resulted in
keeping in the pockets OF consumers and
cut Of the pockets of farmers from one
to two billions of dollars.
The food control act carried min
imum guaranteed wheat price of So per
bushel for the 1918 wheat crop and the
president fixed the price at 1920, the
same as in 1917, which price was in.
creased to 1925 in order to absorb the
25 per cent increase in freight rates or
dered by the director general of railroads.
Concerning the price for which this crop
Of wheat might have sold had the price
not been controlled, Mr. Hoover said,
Altogether the balance of the supply
and demand for our present wheat now
| looks as though we might see wheat at
$3.50 per bushel, as it was in 1917. if
there Is q free market" Therefore upon
Mr. Hoover's estimate land no man Is in
better position TO make a correct esti-
matel, the consumer was again saved
over a billion dollars by government
control, which saving was at the ex-
pense Of the producer
In August, 1915 the national agricu-
tural advisory committee, upon which |
served as the representative of New
England, was called to Washington to
advise what in the language Of the food
control act, would be a reasonable guar
anteed price for wheat. in order to as
sure producers a reasonable profit The
committee heard the evidence and re-
! ported unanimously that an increase OF
20 cents per bushe would be necessary
to partly equalize the higher costs Of
labor and supplies since the Garfield com
mittee found 1920 a fair price in 1917
and recommended S246 as the guaran-
teed minimum. The president, however,
on Sept. 2, 1918, issued proclamation
fixing the guarantee at 1926 per busheI,
but with the following qualifications:
In insuring the governments guaran-
! tee Of the same price for the 1910 wheat
crop that was guaranteed for the 1918,
crop, | wish it to be understood that in
the spring of 1919 | viii appoint dis
| interested commission which will secure
| for me the facts by that time disclosed
as to the increased cost of farm labor
and supplies, using the three-ye pre-
war average prices Of wheat, Of labor and
1 Of supply costs as basis, and that from
this information shall determine
whether there should be an increase in
price above the present level and, if so,
what advance, in order to maintain for
the farmer a good return"
The commission promised by the presi-
dent was not appointed in the spring OF
/ 1919 because the war had ended and the
/ government had announced a policy Of
| disseminating control Of prices Of all com
modities. 1t was expected that wheat Of