The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-26
PRICE FIXING DELAY
CUTS FLOUR OUTPUT
Uncertainty About Wheat
Threatens q Serious Short
age Of Bread.
OTHER STAPLES BOOSTED
Governments Action Said to
Hamper Seriously Foreign
Trade of q. 8.
OTHER STAPLES BOOSTED
Special Despatch to The Sun.

WASHINGTON. Jan. 25.-Protracted
delay in the determination OF a definite
policy with respect to the fixed price
on wheat may result In a serious short
age Of wheat flour and real suffering In
this country. according to grain dealers
who are there to urge prompt action.
Already It Is declared because OF the
Government will adopt to restore normal
trading conditions in wheat, and at the
same time make good obligations to the
farmer, millers are refusing to purchase
wheat for fear OF buying at the markets
top and standing a loss of more than 81
q bushel through sudden restoration
Of the world market price.
While the grain exchange men. pro-
ducers and Food Administration off,
cials seem in agreement on the general
proposition that the Government should
rescind the fixed price on wheat and re-
imburse the farmers for their losses
through such action, there promises to
be shap difference of opinion as to the
machinery through which this is to be
| accomplished.
Two Methods Are Proposed.
Two methods are being discussed.
1t is proposed:
First-That Congress create a new
Governmental agency to purchase
wheat stocks direct from the farmer at
the fixed Price Of s226 bushel and sell
for foreign or domestic consumption
at the world ma rket price, or.
Second-That the farmers turn their
wheat into normal channels OF competi-
tive trade at the world market price
and call upon the Government for re-
endorsement from a fund to be Gre
ated for that purpose.
The second proposition is being
strongly urged by Produce Exchange
men as the safest and most effective. 1t
| Is pointed out that with a Governmental
agency doing the buying and selling
| there will be lacking the keen competi-
| ton necessary to meet the opening up of
other world markets-Argentina. Brazil,
| India and Australia--which were closed
| because of lack of tonnage during the
war.
Already our hold on the foreign trade
| has been materially hampered. they say.
| by the desire OF this Government to hold
its wheat stocks for the Government
| price while Australia. India and South
| America are unloading their backed up
stocks at prices more than, a dollar a
| bushel under our fixed price,
| Far From Economical Move.
Tactics like this. in order to save the
Government a part OF the loss from the
| fixed price at the sacrifice Of our hold
| on foreign markets, is Saving at the
| spigot and leaking at the bung."
Produce men are firmly convinced that
| the fixed price on wheat is the keystone
| In the arch OF the high cost OF living.
With the certainty of s2.26 a bushel for
the 1919 crop ahead OF them. they say.
| farmers are increasing their acreage of
wheat out OF all proportion to the acre
| age in other grains, with the result that
| these coarser grains are scarce and COM
mensurately high. as Is everything they
so into
The high price OF wheat to the con-
| sumner. they point out means a high price
| for all poultry products, while the Gov
eminent regulations as to wheat milling
| producing a minimum OF bran and sim
| liar dairy feeds. are reflected in higher
| costs of dairy products.
prompt return to a world market
price for wheat with this country's stocks
| flowing through the normal business
channels. the produce men say. would
| promise more toward a return to normal
| prices than any other economic move.