New-York tribune., 1919-04-22
Wheat Director Declares
Sharp Reduction in Price
of Grain Is Necessary
to Make Loaf Cheaper
u. S. Must Feed World
Allied Countries Will Not
Raise Crops as Large as
Last Year, He Predicts

julius Barnes, head of the Food Ad-
imlnistration Grain Corporation, who
fr mas been appointed United States
wheat Director by President Wilson. to
handle the 1919 wheat crop, as provided
1or under act of Congress GUARANTEEING
the farmer a minimum of 1926 a
pushel, said yesterday it would be a
iong time before the "fivc-cc loaf of
bread returned
never return. Mr.. Barnes added that
80 per cent of the cost of baking loaf
OF bread was the wheat cost, and he
asserted that sharp reduction in
wheat prices would be necessary to
prlng about any important cut in the
price of bread.
Inc opinion was expressed by Mr..
barnes that the United States would
nave TO continue to feed a great part
OF the world. The Allied countries. he
SAID, would not raise such large crops
OF Wheat as they did last year. Re
ports that there arc large supplies of
wheat in storage at the Black Sea ports
are unfounded, Mr.. Barnes said, and at
the present time this country is sup
plying kumania with wheat when, if
supplies We're available at the Rlacl,
Sea ports, Rumana would buv there,
Supplies OF wheat carried over from
last years crop in this country arc
very small, the head of the grain cor
poration stated, and it is with difficulty
that wheat is being obtained in suf-
helent quantities to meet the current
export demands. Owing to this situa-
ton wheat IS selling at different points
m the interior at anywhere from l2
10 90 cents q hushel above the mini
mum guarantee price of $226.
According to Mr., Barnes, apnroxi
mA'ely 90 per cent of last years Ameri-
SSh wheat crop was taken for export.
ne pfedlcted very large demand from
sntoau thls aeaSon although he said
ny waa hot in "a position to Atate Nhere
encto would be aurplua, for obvious
tVasohs' the latest government estf-
I",e ,hsa NuNws uNN a an Indicated yield of more
'hsn soo,o00,o0o hushela of wintc,
meat, pet The eprlng wheat planting il
w weeks late. and this Ia considered
M eniavofahso development as ,e'
sa,as The now spring wheat cron
statement issued by Mr., harne,
SAID. IN part: ""' "os
"Thc wheat cron of- to,a
iargeSt in our history ~Is consvn'aa v Sston,
p,eugcd' Fortunately, outside nf ~, ",
ulrest weather conditions. America ,,''.' Wv
confidently expect in 1919 the larsa'
wheat crop ever grown. s's
congress has made effective M
lionaI guaranteed price of wheat. I,
0u'e"'ng 'nat guaranty to the pro
queer We shall undoubtedly aconir
large quantities of wheat. Its resai'
pohcy Is one of great public interest
My conception is that that policy can
not be intelligently decided until GRO,
outturns are more definitely know,
here and abroad. We shall be prepare,
TO act on one Of several alternate pol
icies. p0'
Congress had clear conception q
me difficulties Of the coming year, ant
delegated TO the President large now
ers and dlGcretion. While the nationa
policy. Of resale must be decided b,
factors developing with season. thcr,
are certain fundamentals which con
ceive to be right and just, and or
which an operation may be based.
They are these:
first~~ihe guaranty is clearly in
tended for the benefit Of the producer
ana the license power may be used 70
control trade practices 30 az 10 assure
tne proper reflection OF the guaranteed
prlcc reaching all producers.
second~~ln the event of gurplus
wneat production, domestic consumers
SDaii not pay more for wheat than
pfices concurrently accepted from for
cign buyers
"Third~rhe national Treasury should
be protected by the realization of a
World price, as far as it can be de
sormined, and any governmental policy
ol arfificially subzIdizing is unsound."