Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1919-08-21
EXPLAINS
WHEAT SITUATION
State Agricultural Commission.
er Replies to Critics of Fixed
Wheat Price

st. Adams, Aug 15.-The following state
ment concerning the price of wheat has
been issued by State Commissioner Of
Agriculture E. S. Brigham:
There is considerable criticism in some
of the papers of the State regarding the
government guarantee of wheat prices
and the discussion is of such a nature
| that the consumer may gain the impress
sion that the present high prices of the
necessities Of life are attributable to this
cause. Therefore. a brief review Of the
governments control of wheat prices may
serve to clear up some Observation-Disclosures
which seem to be prevalent.
In the fall of 1915 and the spring OF
| 1917 the farmers of the United States SOW
cd crops of winter and spring wheat
which they expected to sell in the worlds
markets at price determined by the
worlds relative supply and demand of this
commodity. In times past large world
wheat crop had brought the producer
prices ruinousy low on the other hand
short crops had brought higher prices and
a recoupment. The crop of 1917 was short
and the demand large from the countries
engaged in the war with Germany In
the spring of 1917 May future wheat sold
| for 1913 per bushel on the Chicago mar
ket, when trading in futures was sus-
pended. In August 1917, the President.
under authority given him by the food
| control act, appointed a commission Of
| II men to determine what was a fair
price for wheat. In the words of Mr..
| Hoover These men came to the unan-
! imous conclusion that $50 for No. 1
| Northern, at base markets. represented a
| fair average profit to the farmer and the
| food administration was directed by the
President to maintain that price
| Although this price was 500 per bush
al below the price for which wheat of
| 1917 crop had already sold and although
Mr.. Hoover stated in public address
that he agreed entirely with the con-
tention of some farmers that they would
have received $500 and perhaps 5000
per bushel for wheat had it not been for
the restraints imposed by the govern.
ment. there was nevertheless no substan-
tial body of complaint from wheat rails
| ers, even though in some sections of the
, country the fixed price resulted in an
actual loss to the grower. and at cer-
tain periods of the year a farmer who
or barley for cattle feed at the price
which he received for his wheat. Govern
ment price fixing of wheat in 1917 prob
| ably resulted in keeping in the pockets
of consumers and out of the pockets of
| farmers from one to two billions of dol
! lars.
! The food control act carried a mini
mum guaranteed wheat price of 500 per
hushel for the 1918 wheat crop and the
| President fixed the price at 500, the
same as in 1917, which price was increas-
| ed to s2.2S in order to absorb the % per
cent. increase in freight rates ordered by
the director general Of railroads. Con-
corning the price for which this crop of
wheat might have sold had the price not
been controlled, Mr.. Hoover said: cal
| together the balance of the supply and
demand for our present wheat now looks
| as though we might see wheat at s.. 50
! per bushel, as it was in 1917 If there is
! a free market" Therefore, upon Mr.
Hoover's estimate, land no man is in a
better position to make a correct esti-
| mate) the consumer was again saved over
billion dollars by government control.
which saving was at the expense Of the
! producer.
In August 1915, the National Asricul-
tural Advisory Committee, upon which I
served as the representative of New Eng
land, was called to Washington to ad-
wise what. in the language Of the food
|
anteed price for wheat. in order to as
sure producers a reasonable profit. The
committee heard the evidence and report
ed unanimously that an increase Of %
cents per bushel would be necessary to
partly equalize the higher costs of labor
and supplies since the Garfield committee
| found $3.50 a fair price in 1917 and rec
commended $2.46 as the guaranteed mini
mum. The President. however. on Sep
TENDER 2. 1918, issued a proclamation Ak
ing the guarantee at 1925 per hushel but
with the following qualifications:
In issuing the governments guaran-
tee of the same price for the 1919 wheat
| crop that was guaranteed for the 1915
crop. | wish il to be understood that in
the spring of 1919 l will appoint a disin-
terested commission which will secure
for me the facts by that time disclosed
as to the increased cost of farm labor
and supplies using the three-year pre-
war average prices of wheat. Of labor
and of supply costs as a basis, and that
from this information I shall determine
| whether there should be an increase In
price above the present level and, IL So
what advance, in order to maintain for
| the farmer a good return"
The commission promised by the Pres
ident was not appointed in the spring
| of 1919 because the war had ended and
the government had announced a policy
OF disseminating control of prices of all
| commodities 1t was expected that whea,
OF the 1919 crop would be sold on the bas.
| is of the world price subject to the gov.
ernment's making good Its guarantee OF
$2.26 to producers. 1t now develops that
the wheat crop of this year is disappoint.
ing Statistician B. w. Snow in the Aug
ust 9Th issue of the New England Home.
stead points out the poor and damaged
| condition OF the crop and states:
1T iss questionable whether the guar.
| anteed price fixed by the government
and which was intended to stimulate pro
ductlon, will furnish the wheat grower a
reasonable return for his labor in view
of the marked deficiency In Weld. I,
will not be at all surprising IL a large
part Of the 1919 crop goes into consump.
ton at a figure above the Set price"
The average I IN price Of wheat In
the United States IS SOS per bushel and
the average farm price for Europe's 1;
consuming countries is 1915 per busheI
With free market. therefore, we may
expect that American wheat will seek
the higher market and command a higher
price than the Presidents minimum guar
antee, Prices Of corn. barley, cotton.
seed meal and other concentrates are
now so high that a farmer cannot afford
to sell wheat and buy back these com.
modities to feed his stock
However. on August s. the President
| in hie address n Copprass an 49, ..-I