South Bend news-times., 1919-06-30
PRICE Of BREAD
TO REMAIN Up
Bumper Crop Of Wheat viii
Not Affect Bread Price
at Present Time.
specisl - me News Times

Specisl q The News Times.
WASHINGTON. d g.. June 80
Those who arc expecting a reduc-
ton IN the price OF bread a. a re-
suit OF this years bumper wheel
crop-the largest IN the history Of
America probably will bc dlsap-
pointed. Cheaper bread is not yc'
ln sight. although the hary estine Of
Americas greatest wheat crop is
we'll under way and foreign reports
indicate that the world supply will
be adequate for AL
Indiana members % congress have
just received letter from Julius
n Barncs. the United states wheat
director. in which it ie intimated
tho administration has no present
intention of selling wheat 20 the
uniI1ers at less than the guaranteed
price of 1925 % bushel at Chicago
The last congress appropriated ST.
ooo.0oO.00o tc absorb losses sus-
tanned by the government in making
good its Ellarantv to the farmers
and permitting tho American con
sIrners TO have bread ar prices
based on the world supply ~ wheat.
Mr.. Barnes position from the first
has been that the governments loss
should be made the minimum.
which means that he favors keeping
the price OF -four up 10 the guaran-
teed price OF wheat unless forced
down BY outside competition.
DR.. Barnes Explains.
Tn his letter TO senators and rep
resentatives Mr.. Barnes explained
that the United States grain corpo-
ration Is asking contracts individu-
ally with 5000 millers IS. 900 grain
dealers 5000 -four iobbers and 49,
900 bakers. He has worked out "a
control system by which the federal
government can keep track Of every
bushel or wheat sold.
The contracts which the grain
corporation is executing with the
flour miilers provide way by which
the cost Of -four may eventually be
reduced 10 the consumer. by fixing
a definite resale price for wheat be-
low the guaranteed price. the gov
ernment absorbing the loss the mill
er sustains between the cost OF the
wheat 10 him and the price ne gets
for the -four Farmers are insured
the guaranteed price under the con
tracts made with the dealers and
millers There is nothing 20 pre-
vent them receiving more il the
buyers are willing 20 pay the price
But the trades margins Of profit
are fixed so that the public will
know at all times whether or not it
is being gouged.
on the subject Of lower prices
for flour Mr.. Barnes says IN his let
ter.
MAY Reduce sales
II with a favorable development
OF the rrop Of the world and a bet
ter appreciation OF supply and de-
mand conditions il should later
prove desirable 20 reduce the sales
price Of wheat for export and. con
currently with t. the reflection into
the flou- price for our own domes-
tic consumers the machinery for
doing tnis with the least possible
amount OF misrepresentation and
abuse exists in the miUers' con
tracts. A settlement with 100000
or more wheat raisers presented in
superable difficulties
This. vas interpreted 20 mean that
the grain corporation does not in
tend 10 lower the price of flour un-
less IL IS forced by world market
conditions 20 accept less than the
guaranteed price for the surplus
wheat exported A policy of his
kind. IL was pointed out will keep
in the treasury the bulk OF the bill
lion dollars appropriated 90 make
good the governments losses. but at
the same time u will men continued
high prices OF all kinds OF foods as
bread is recognized as the price
barometer.
Mr. Barnes letter has served 10
revive among house members the
talk OF legislation establishing an