The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-02
BARNES PREDICTS
CHEAPER WHEAT
Cannot Understand Why Any
Grower Does Not Sell at
Present Prices.
EXPECTS ENORMOUS CROP
Grain Corporation to Buy for
Shipment Cereals to
Relieve Europe.
EXPECTS ENORMOUS CROP

julius II. Barnes, president OF the
Grain Corporation OF the Food Admins
tration, Issued yesterday a statement in
which he said he could not understand
why any grower OF wheat should hesitate
to take advantage of present wheat
prices, ranging in some markets from
20 to 40 cents a bushel higher than the
Government price level, In view OF the
outlook for an enormous new crop due
to begin to move into the markets within
ninety days
In an effort to control the price OF
-four In the United States at a reason
able level, the Grain Corporation has
adopted new programme In the han
ding Of the troublesome wheat problem.
Neutral Governments have been advised
that America will be unable to furnish
any more wheat or wheat flour 20 hem.
but that they must send their ships to
other sources Of supply for wheat. The
neutrsls are free to buy of our sur
plus of rye. barley and oats In our
markets.
Beginning next week the Grain Cor
poration will buy for shipment rye
-four corn flour and barley -four for the
relief of liberated countries In Europe
purchases OF wheat flour.
II all this doesn't work to control the
price of -four in this country, thereby
showing that there is less wheat in the
United States than figures apparently In
dictate. Mr.. Barnes says, then a move
will be made to permit the importation
of wheat and wheat -four from Canada,
Argentina and Australia into this coun-
try.
s.
the result of opinions expressed by the
Industrial Sterilization Board at Wash
ington that lower food phi Ices could be
expected in the near future and the ap-
parent contradiction presented by the
recent continuous advances in wheat
prices in Western markets, with q corre-
spending moderate advance In -four
prices within the last four weeks
Statement of J. II. barnes.
at is quite true" Mr.. Barnes said.
that in all the primary wheat markets
OF the United States most varieties OF
wheat are selling at premiums above the
Government buying price: In some mar
kets and for some varieties extending to
90. so and 40 cents a bushel. The reason
for this seems to be that current dellv-
cries of wheat from the farm have been
insufficient for milling needs. and, al
though the Grain Corporation has resold
from its accumulated holdings within the
last two weeks practically 100000
bushels Of wheat. the price has been only
moderately held in check.
There IL no effective control OF the
maximum price OF wheat or wheat flour
possible under present conditions and
since the armistice. On my return from
Europe two months ago ! found the
flour trade of America at standstill
because bakers, wholesalers and dealers
IN some inexplicable manner were dis
trustful OF the Government fair price
level. fearing a collapse IN price fear
which could exist only In great igno-
rance of the food exhaustion OF Europe
and Of the part which America must
play IN preserving those peoples. Now
we find the other extreme. and in
neither case wholly warranted. Two
months ago we were Obliged 10 explain
that our wheat obligations abroad. which
must be met in the service CT humanity,
were such that there could be no sur
plus IN 1918 wheat in this country and.
there fore. there could be no depressing
influence.
1T should be realized. however. ana
for the following reasons that there is no
likelihood of any scarcity OF -four for
use in this country and no reason for
wise baker or dealer to anticipate
his needs beyond his current require
ments.
Fortunately, America has q surplus
OF rye and barley and oats and In
buying upon our markets we have ad-
vised the neutral Governments that
America will be unable to furnish any
more wheat or wheat -four to them that
they are free to buy these other grains
In our market, but must send their ships
for wheat to other sources of supply.
Corporation Buyp Next Week.
Also. commencing next week. the
Grain Corporation will buy. for shipment
in relief to liberated countries in Eu-
rope. rye -four, corn -four and barley
-FOUR and will thereby reduce its cur
rent purchases OF wheat flour.
SHOULD all these factors fail to con-
troll the price Of -four in the United
States OF q reasonable level. indicating
greater lack Of wheat in the farms
of this country than statistics would
Indicate then We shall relax import re-
strictions and allow wheat and wheat
-four 20 enter the United States from
Canada. Argentina and Australia.
I'VE cannot understand why any
grower should hesitate TO take advan-
tage of the present prices of wheat
above the Government price level. with
the present outlook for an enormous
crop of wheat which will begin to move
into tho markets within ninety days
The new crop. on an enormous acreage,
has weathered the winter with less
deterioration than ever known. and II
would take unprecedentedly disastrous
weather conditions 10 deprive America
now Of its expected large wheat yield.
THE effect OF such a crop can only
he that present prices in primary mar
kets will fall TO the Government level
and that It will be reflected Immediately
thereafter in a moderate decline in -four
prices