Evening journal., 1919-08-05
FOOD PROBLEM
BEFORE CABINET
IContInued From FIrst Pagel


most cities 10 is argued II this price
can be cut 10 five or six cents other
foods will tumble in sympathy.
Gov. Harding was TO be asked about
the advsabiity Of reducing the volume
of currency in circulation which OF
flcials say is twice that Of pre-var
days They argue that this is one OF
the chief causes Of high prices.
10 is also suggested That Federal
banking machinery be used TO contract
credit, Some experts say 1t Is now
highly inflated
The President it became known to
day, is giving serious consideration 70
the revival Of the price fixing and prof
/ 10 limiting functions Of the food ad-
minlslraiion and the war industries
board. now imperative for lack Of
funds although the laws which en-
abled them TO operate are still on the
statute books
| lie conferred late yesterday with Fed
eral Trade Commissioners Murdock and
Colyer, asking them what cost data
they are prepared 20 furnish. The
commission. it was said. has produc-
tion cost figures on S3OOO0,OOOOO0 worth
OF commodities, including meat, bread,
flour. canned goods and other foods.
These figures were used by the govern
ment in price limiting during the war
and will form the basis Of any action
growing out OF the present agitation,
according TO officials.
The President also discussed with
the commissioners varied measures IN
relation 90 food questions.
The President, It was learned, hopes
to present definite recommendation
within a few days.
New laws may be asked from Con-
gress. where existing legislation is con-
sidered inadequate The President, ac-
cording to his advisers. feels that nat
ural economic laws are responsible for
high prices in part only. He believes
they say that natural conditions are
aggravated by combinations. proflteer-
ing, speculation and boarding.
He is said TO believe that these arti-
fetal conditions can be broken down by
Federal action, and that their existence
is responsible for much Of the unrest
and dissatisfaction.
Repeal Of the wheat price guaranty
law is scheduled to come before. the
Senate agricultural committee shortly
with senators from agricultural States
apparently widely split.
Chairman GrOnna, North Dakota,
favors repeal on the ground that the
farmer will then get higher prices for
his wheat.
Senator Norris. Nebraska: Capper,
Kansas, and other members Of the com
mittee, declare the farmer Will lose IL
the government minimum is removed.
Millers and not the farmers are
pronting by the guarantee law, ac-
oording 10 Gronna.
The United States Grain Corporation
has used the government minimum
price TO beat down the amount paid 10
the farmer for grain, while the millers
and brokers are free TO elevate prices,
Gronns said. What is already selling at
more than 50 a bushels at Minneapolis,
aud a world shortage will make the
price higher. he asserted.
Cspper and Others opposed to re-
pealing the guarantee say its removal
would play into the hands Of speculs-
tors.
II the guarantee were removed wheat
would pour into the markets, the price
would slump and elevator men and
Spectators would accumulate vast
hordes Of grain. these seniors said.
Then. in view OF the world shortage
OF wheat, the price would go back 70
a high level and the public would fail
benefit by the low prices paid the farm
ers. in their opinion.
Charges that the government itself
through the United States Grain Cor
poration which is marketing the ma
tion's grain crop is guilty Of huge
profiteering in grains and is thus re-
sponslble for boosting the cost Of liv- |
ing. will be made 10 the House by Rep,
resentative McCullouch. Ohio. he an |
nounced. The grain corporation |
through its complete control OF the |
market has increased the price as hieh |
as 30 cents a bushel above the g1iaran- |
teed price and transactions have re- !
suited in a profit OF nearly s2i.OOOOOO !
10 the government, he declared.
MCCULLOUGH said he had letters from |
Julius II. Barnes, head OF the wheat |
admitting the profit but !
claiming that the highest profit per
bushel the corporation has collected Is |
II cents. Barnes stated that he con-
sidered the s226 a minimum and not
maximum. McCullouch said.
The corporation. he said. is buying |
the wheat from the farmers at about |
the $2.25 price and selling Il at a large |
prolt 20 the millers.
The House today will he asked TO or |
der an INVESTIGATION Of high sugar /
prices with the submission Of the |
resolution, OF Representative Tinkham.
Afsee favarahlv ranorfod from fho In
terstate commerce committee.
The object Of the investigation /
which VIII be conducted by the Fed |
eral Trade Commission viii be TO show |
that there is no justification for the |
present prices. Plans are 10 look in |
70 all the stock Of sugar now stored in |
the United States as well as the /
amount being regularly imported.