New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-05-07
GOVERNMENT HITS
FLOUR GAMBLERS
HEAD OF GRAIN CORPORATION
WOULD SELL HOLDINGS IN
LOCAL MARKETS
PRICES OF CORN AND OTHER
GRAINS DROPPED AND so
DID PROVISIONS.

Aroused by sky-rocketing -four prices
Julius H. Barnes, president Of the grain
corporation of the United States food
administration, issued an announcement
last week that the grain corporation
would buy no more white flour for ex-
port:
The announcement created conster-
nation among the millers and specu-
lators in food. Corn and other grains
dropped and so did provisions.
Fearing that. the food administra-
ton might refuse to buy high-priced
meat for the starving millions Of Europe;
the packers ran to cover.
Flour prices began going up, as soon
as the food administration removed
all price restrictions, except on the price
it would pay for wheat. Cash wheat
also scared away above the government
fixed price and sold as high as 1926
on the Minneapolis market.
Notwithstanding that the mills bought
practically all of their wheat for $2.18
and less, they based their price for flour
on the fancy prices being paid for a few
carloads Of cash wheat that came to
market six months, after the regular
crop movement had ended.
Bougth Government Grain.
That the rnillers were not obliged to
replenish their stocks: from $3.50 cash
wheat is made clear by the following
statement from Mr.: Barnes:
Gin the past two months the grain
corporation has resold from accumu-
lations 75,0oO,000 bushels of wheat to
mills Of the country. These sales with
no idea Of profit but regardless Of the
market price obtainable outside the
grain corporation, were at. actual, cost,
plus an allowance representing accrued
expenses" a
Tremendous Decrease.
The action of the president Of the
federal grain corporation i'm cutting of
|, the export trade has, resulted in a ire.
'mendous decrease in the demand fol
flour and the mills have cut down theii
output. The mills had been grinding
IL 900, 600 bushels of: wheat weekly
Domestic consumption has not exceeded
! 8,O0O,O 900 bushels: 4.
In reply to, the. charge of speculation
directed at the millers by Mr.: Barnes;
H. P. Gallaher;, vice president and general
manager Of the Consolidated Milling
company, Minneapolis, asserted that the
farmers have been to blame for the high
flour prices: ''The. demand for flour
has been very heavy and we have been
obliged to- pay almost any price for
wheat he said.
Mr.. Gallaher's aiibi for the millers
is not regarded seriously, for it is; we'll
known that practically all of the farmers
wheat was marketed months ago. The
farmers haven't any terminal elevators
in which to store their wheat for an adj
vance in price.
May Remove Restrictions on Inn
ports.
> In the event that removal of the
export trade does not sufficiently reduce
flour prices, the president Of the grain
corporation makes yelled threat in his
announcement that restrictions may be
removed on the entry of Canadian wheat.
''The' steady advance in the market
price of -four is not justified by any
scarcity, actual or impending" Mr.
Barnes says, sas reserves have been
carefully preserved for the demands Of
the country.
.'The grain corporation, fortunately
is supplied with sufficient food stocks
to carry out its obligations, including
the large relief program abroad, and is
able to and will discontinue wheat houl
purchases for export as long as domestic
prices make this desirable. -