Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1919-04-25
Five-Cent Loaf Is Gone Forever.

Despite maintenance Of the Government
guaranteed price in the face of an Ameri-
can 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 Director.
assured the public in statement in New
York outlining the policies of his admin
istration.
Mr.. Barnes termed unsound any Govern
mental scheme Of artificial substituting,
and thought it quite possible. with the
greater part of Europe looking to America
for food and the crop prospects of the
Allied countries even poorer than last
year, that little inroad, except of tenn
porary nature. would be made upon the
billion-dollar fund provided by Congress
to carry out the farmers guarantee of
$2.26 bushel.
However. should there be surplus pro-
duction Of wheat. he said, the National
Treasury would be protected as far as
possible in making good the difference
between the guaranteed and market rates
by determination of world price for the
sale of the surplus. At present the world
price exceeds the Government price. How
much of the Federal appropriation would
be expended. the Director stated. would
depend upon the harvest, as would also
the Government policy in buying and SELL
ing portions of the crop. Until facts con-
corning the 1919 yield were more generally
known, he added. no definite plan Of
operation could be intellieently adopted.
with the result that the Administration
was working out number of other policies.
In relation to Federal acquisition Of
wheat, which he predicted would be car
ried out on an extensive scale in enforcing
the farmers guaranty, particularly if the
world price should be lower than the Gov
eminent basis. effective until June 1. 1920.
Mr.. Barnes said three plans were under
consideration Direct dealing with the
farmers. which would bring the Director
into contact with 100000 persons; pur-
chase through the country grain exchanges,
which would necessitate keeping 10000
accounts. and buying through the mills.
which would reduce the number Of clients
to 1000.
AS to sale Of OBSERVATION-DISCLOSURES stocks.
the Director said that Congress-, with
clear conception of the difficulties Of the
coming year. had delegated to the Presi-
dent large powers and discretion, which
would be at the service of the Wheat Ad-
ministration. 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-
tees so as to assure proper reflection Of
the guaranteed price reaching all classes
of producers.
Accepting the Department Of Agricul-
lures estimate Of the largest winter wheat
crop in history. and making allowance for
unfavorable weather conditions, which had
held the spring crop back two weeks. Mr..
Barnes predicted that America 1919 wheat
yield would tax to the utmost the country's
storage. railroad and shipping facilities.
He expected reduced wheat and wheat
products prices within two months-they
are now above the Government fair price
level owing to the heavy export demand
but saw little chance Of a return TO the
five-cent loaf Of bread The cost OF -four
was only AS per cent. the cost Of bread.
he said. and with wages and other factors
Of manufacture at high levels. there was
no present likelihood that the price would
be cut in two.
Mr.. Barnes denied reports that Govern
ment agencies were urging farmers to cut
down their acreage Of spring wheat. and re-
garded as fortunate. in view Of the food
conditions throughout the world, the prob
ability that America would produce this
year the greatest crop ever known. The
1918 harvest-second largest in the ma
tons history--was consumed or pledged.
he stated. Whether the world value would
continue during the year higher than the
Government fixed price, he said. would
depend on foreign crops. whose prospects
field agents Of Herbert C. Hoover. head Of
the Inter-Allied Food Commission. were
studying.
The Wheat Director thought II probable