New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-19
They Propose That Agree
ment Made for $3.50 a
Busl1elWheat Be Cancelled
Cost of Living Is Cited
Argument Is Made Govern
ment Eventually Will Have
to Free Markets to Trade
By THEODORE M. Knappen
NeU York T1bane
Wnshin0tOu Bureau


NetU York Trtbane
Washington Bureau
WASHINGTON, Jan. 18,-Western
millers and elevator men who have
been in Washington comforting with
members of Congress in regard to the
problem of carrying out the contract
the government has made with the
farmers of America to pay them s2.26 a
bushel. Chicago basis, for their wheat,
until June /, 1920, have made the
unique suggestion that this contract
be cancelled and settled in a manner
comparable to the handling of war
product contracts of all kinds.
The principal argument in favor of
such procedure is that since the
government ultimately will have to
free the markets. the sooner it does
so the better. for if the United States
markets are kept on an artificial basis
for eighteen months yet. the foreign
markets for American -four will be
lost and the cost of living likely will
be twice IS high, so far as bread is con
cerned, as the real value of wheat
would justify.
Farmers to Decide
The manner of settlement With the
farmers, since individual adjustments
with two or three millions of wheat
raisers are impossible, is for Congress
to pass an act now appropristing bill
ION dollars or whatever sum may be
necessary. and providing that it shall
be paid out to the wheat producers as
they gather crops at q fixed price Of
81 or 70 cents q bushel, or whatever
price may be agreed upon as fair
advance settlement of their claim
under the Lever act, leaving them with
their wheat to sell for whatever it may
bring in an open market. By this
settlement the farmers would get the
settlement price as soon as their grain
was threshed, and would have their
actual wheat left for disposition as
they might please. Should the open
market, which would be reestablshed
on the passage of the proposed act,
tall to 70 cents the farmers would lose
rs cents a bushel as compared with
what the Lever bill promised them. On
thn other hand if the market price
should be $3.50. they would make "a
cents more.
The argument for the farmers to ac-
cept such legislation in good spirit is
that the time has come to clean up all
the economic debris of the war as soon
as possible, and that they should be
prepared to help the government hv
accepting compromise that might
mean some loss of prospective profits
70 them and that might, on the other
hand, increase their profits, and that
would mean that the masses Of their
fellow countrymen would be relieve d
OF paying two prices for -four and
bread for more than year after the
war Is over, and in spite of the fact
that the world will haze immense sur
plusages of wheat.
System of Buying
If this plan is not followed the
government Will have to build up an
elaborated system for buying and
handling the actual wheat as it is de-
hvered from time to time between
June |. 1919, and June l, 1920. 1t will
have also to determine whether il is
going to pass the difference in price
between the nXed price and the world
market price on to the consumers or
whether IL will absorb the loss itself.
o do the former it will be necessary
tor foreign wheat to be excluded from
American markets while the govern
nent unloads. Even then there will
remain the complication that the
government viii find itself at the end
CT the fixed price period with surplus
OF many hundreds Of millions Of bush
"is OF wheat. which it will have event.
Tally to sell at what it can get for il.
As to The extent Of the surplus. the
millers point out that on the basis of
the winter wheat average and the
prospects for record breaking spring
wheat acreage, the 1919 wheat crop Of
the country may amount TO 1900
about 1850 600 600. The latter figures
would leave a surplus Of about 625.-
600 900 bushels over the maximum
nome consumption.
Embargo Confronted
II the government buys all the wheat
n order to carry out its guarantee, as
~ may nave 70 90, IN the event of a
ialling world market, it VIII have to
confront turnover amounting to more
han $500 600, 00O.
The end Of the present session of
congress draws near and neither tho
GOD administration nor the Agricul-
'urai Department has submitted even
an idea to Congress as TO how this
gigantic task IS to be faced. The food
administration grain corporation goes
out Of business az soon as peace 10
declared and in anticipation thereof
- nov laying it's plans to clean un bv
June /, the beginning Of the new cron
year. 0'op
Texas wheat begins 70 come INTO
INC market IN May and arrives in large
volume IN June. So, there remains q
comparatively short time in which "a
organize for handling the colossal crop
mat 10 coming on. The emergency vii
be such that if the present Conprrs.
does not act, a special session vii
rave 70 be called 10 deal with this sub
ect' II FOR no other reason.
III III -