New-York tribune., 1919-01-30
Grain Corporation
Will Not II sell
Wheat Below Cost
Barnes Says Situation Does
Not Warrant Taking loss
Foreign Demand VIII
Absorb the 1918 Surplus

Julius Barnes. president OF the Unit
ed States Food Administration Grain
Corporation, who has just returned
from Europe where. with Herbert
Hoover, he made survey of the food
situation issued a statement yester-
day assuring the flour trade Of the
country it need not fear that the cor
poration viii resell any of the wheat
it holds at less than the price orig
iaally paid to the growers.
Al the same time. in letter sent
10 the New York Flour Club. which
recently adopted resolutions asking for
immediate assurance that it win re-
ceive the same protection on the flour
it may now hold as is now guaranteed
TO the farmer, the miller and the
wheat handler against possible de
cline in the price of wheat, Mr. Barnes
expressed the opinion that FOR The
present at least the general situation
would seem to justify our American
wheat prices. In support Of this he
said that there is steady flow Of
purchases from America Of wheat and
wheat -four by buyers perfectly free
to send their ships to other sources
of supply. should those other sources
offer superior attractions for a buyer
over the American prices. plus the
short ocean voyage saving from Amer
ica'
Fear Price Cut
"Ihere seems to be apprehension on
the part of bakers, flour dealers and
millers,' Mr.. Barnes stated, "that the
Grain Corporation may at any time
decide to resell the wheat taken from
the grower under the guaranteed basis
of the different markets-namely. s2.26
Chicago and resell this wheat at
lower price levcl-thus resulting in
decline in -four prices
"'The basis on which this feeling
exists, seems to be an impression that
the would price level of wheat as at
present ruling is below the guaranteed
price basis now made effective in
America
Broadly speaking, this is not true
" orld buyers privileged to seek the
cheapest sources Of supply ar still
coming to America for current pur-
'hases OF wheat and wheat -four, be-
cause ocean transportation consde
with other conditions, the American
price level is still more attractive to
them than the markets of Argentina
and Australia
"Contrary also to the general impress
SION, careful survey of the probable
demand which fall on America for the
halance OF this crop year from Allied
countries, from neutrals. from newly
liberated peoples. and the possibly i'm
peratlve necessity for some food PRO
vlsioning of Germany in the interesA
o' maintaining a stable government 70.
our own protection will total such G.,
lnands on America as will probably ex
haust all of the 1918 crop surplus.
"lt would be the height of follv to
dispose o. the American surplus under
these conditions, at a loss to the Ma
uonal Treasury, and the official
agencies of the food administrator
making the wheat price effective have
IN contemplation no such action what
ever"
Meeting of Officers
Mr.. Barnes yesterday held a confer
cnce at the Grain Corporations offica
offended by all Of the second y;ce'
presidents of the concern who are in
charge OF operations in the several
zones into which the country is divided
Ihey were told by Mr.. Barnes of the
situation in Europe, and it is under-
stood that initial plans were laid for
carrying out the work of feeding Eu-