Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-04-22
SLUMP: IN.
PRICE OF.
WHEAT IS.
PREDICTED
National Treasury Will Be
Protected So Far as Pos
sibIe in Making Good Dif.
ferences, Says Barnes.

New York., April 2l.-Despite
maintenance 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 concurrently accepted from
foreign buyers, julius H. Barnes,
newly appointed federal wheat di-
rector, declared in statement to-
night outlining the policies of his
administration.
Mr.. Barnes termed unsound any
government scheme of artificial sub
sldizing and thought it quite pos
sible, with the greater part of Eu-
rope looking to America for food,
and the crop prospects of the allied
countries even poorer than last year,
that little inroad, except of a tenn
porary nature, would be made on the
ST 900, 100000 fund provided by con-
gress to carry out the farmers guar
antee of $2.26 a bushel.
Make Up Difference.
However, should there be SUR
plus production of wheat. he said,
the national treasury would be pro-
tected as far as possible in making
good the difference between the
guaranteed and market rates by de-
termination of world price for the
sale of surplus. At present the world
price exceeds the government price.
How much OF the federal appropria-
ton would be expended, the directos
stated, would depend on the, harvest,
as would also the government policy
in buying and selling portions Of the
crop. Until facts concerning the
1919 yield were more generally
known, he added, no definite plan OF
operation could be intelligently
adopted, with the result that the ad-
ministration was working out num-
Der 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 guarantee,
particularly if the world price should
be lower than the government basis
effective until June l, 1920, Mr.,
Barnes said three plans were under
consideration: Direct dealing with
the farmers, which would bring the
director into contact with 100000
persons; purchasing through the
country grain exchanges, which
would. necessitate keeping 10000 ac-
counts. and buying through the
mills, which woui dreduce the num-
Der of clients to 1000.
No Scent Bread.
AS to sale of government acquired
stocks, the director said that con-
sress, with clear conception of
he difficulties of the coming year,
mad delegated to the president
arge powers and discretion, which
would be at the service of the wheat
administration. The sale policy, he |
stated. would be decided by factors |
developing with the season, and the
license power would be used, if |
necessary, to control trade prac-
ices SO as to assure proper reflec-
ion of the guaranteed price reach
ng all classes of producers.
Accepting the Department of
Agriculture's estimate of the largest
winter wheat crop in history and
making allowances for unfavorable
weather. conditions which had held
he spring crop back two weeks,
Mr.. Barnes predicted that Amer
cas- 1919 wheat yield would tax
o the utmost the country's storage,
abroad and shipping facilities. He
reduced wheat and wheat
PRODUCTS prices within two months
but saw little chance of a return
# the Scent loaf of bread because
II high wages and cost of ma
erial.
Mr.. Barnes denied reports that
government agencies were urging
armers to cut down their acreage
f spring wheat, and regarded as
ortunate that probability that
america would produce this, year
ne greatest crop ever grown. The
9lS harvest-second largest in the
atoms history-was consumed or
ledged, he stated.
|