Evening journal., 1919-05-17
new WHEAT RULES
EFFECTIVE IN JULY
Barnes Prepares to Act on
Order to Assure Guaranty
on Gram
EXPECT DROP In
PRICE OF FLOUR

NEW YORK. May i7.-President VII
son, by executive order dated May "a,
has directcd Wheat Director Julius
Barnes TO exercise the authority given
in the recent Act OF Congress TO license
the wheat handling trades, making
proper regulations to assure the guar
aniy price being made effective. and 10
carry out other purposes OF the act.
This information was contained in a
cable from Food Administrator Herbert
G.. Hoover received yesterday by Mr..
Barnes at the Office OF the Food Admin
lstration Grain Corporation. i2 Broad
way.
The executive order also directed the
Food administration Grain Corporation
10 alter. its name 10 the United states
Grain Corporation, after July 4, 1919,
and 10 increase its capital stock from
si5O.OOOOOO 20 SJ0OOOO,OOO. All stock
OF the corporation will be held by the
President OF the United States.
Mr.. Barnes, after conferences with
representatives OF the grain trades 10
formulate contracts between the Grain
Corporation and the handling facilities
OF the country, announced that carly in
June there viii be called general con-
ference Of delegates from the mills,
grain dealers, jobbcrs. bakers and grow
crs associations in New York 10 dis
cuss the plan OF operation.
Al this conference the Grain Corpora
ton will listen 90 suggestions for any
notifications proposed in the contracts,
and by July 4, 10 IS anticipated, That
the new licenses and new contracts VIII
be in general use. The new contracts
are aimed to provide that throughout
the United states wheat in the berry
shall sell always at s2.26 or lis proper
relation, so that the producer every
where will get the full government
price.
No reduction in the price Of bread 10
The consumer is 90 be expected immc-
diately. Mr.. Barnes said, as there is no
change i'm the situation as 10 the old
crop Of wheat and flour and the prices
ruling thereon do not make such an
expectation reasonable until the new
crop begins 20 move in about six weeks.
There will be no lower price then, Mr..
Barnes added. unless a new resale price
Is made by the government.
In six weeks flour prices are expected
10 decline. and It is hoped that no adj
vance in bread prices will be necessary
between now and then on account Of
higher prices ruling for the limited
amount Of old flour still In this cOun-
try. The bakers have promised 10
maintain the present bread prices as
FAR as possible in spite OF increased eX-
penses for labor and material. Mr..
Barnes said. in expectation that the new
crop OF wheat will reduce -four prices
in ihe near future.
Mr. Barnes wrote yesterday 10 I. F.
Gales. president OF the Chicago Board
or Trade, suggesting as further
guarantee against the abuse OF trading
facilities Of exchanges and as a more
effective control by the officers Of grain
exchanges that the Board OF Trade re-
instale the ruling limiting the amount
Of open trades in corn for any one in
tercst or individual TO 100000 bushels.
In the case OF accounts now open be-
yond that quantity the officers Of the
board are to make proper efforts 10 re-
duce such accounts TO that basis in
tile near future.
III you can advise me that the Chi
cago Board Of Trade will do this" Mr.
Barnes wrote. II feel justified in cabl-
ing Mr.. Hoover that a study OF the pres
cnt conditions would indicate further
regulation may not be necessary and
am sure 10 is his desire, as my own,
that the exchanges should perform
their undoubted public service with no
more restriction or interference than is
demonstrated TO be absolutely neces-
sary."