The Richmond Virginian. (Richmond, Va.) 1910-1920, 1919-03-10
Does Not Look for
Lower Wheat Prices
Food Administrator Hoover
Sees No Prospect of Decline
If Supplies and Demand Con-
time in Present Ratio.

Paris, March 8 fvfa radto) There
is no prospect OF lower prices for wheat
this year. according to Herbert c.
Hoover. United states food admtnistra-
tor. IL supply and demand continue In
the present ratio. No considerable re-
duction of present prices OF bread Is tn
be expected either even IL the govern
lnent should decide to take loss by
releasing wheat to millers at less than
the guaranteed price OF $22s oushei.
When asked today whether he thought
the billion dollars appropriated by
congress to support the guaranteed
price for next years wheat crop
would he total loss, Mr. Hoover said:
/ Investigation of the food needs Qf
/ Europe in the past month indicate that
there will be no surplus TO carry over
! into the 1919 crop. The Indian fam
Inc has proved so serious that large
I rart of the Australian wheat crop must
20 there at once. In addition large
proportion of the Australian supply
which has been piling up for years
has spoiled. The needs OF Europe are
greater tina nour previous estimates.
Altogether the balance of supply
and demand for our present wheat IN
dicates that we might see wheat at
$3.50 n bushel as II was in the spring
E
INCREASED WHEAT PRODUCTION.
/. AS to the 1919 crop, 1t Is too early,
Of course, to come to any precise con-
clusion. but the United States crop is
likely to be from 10 to 20 per cent
greater than last years Russia. India,
/ Bulgaria. Serbia and Rumania, former
exporters OF large amounts of wheat.
| will be importers for at least part of
next year. The Australian 1918 crop
! is small and the Argentine crop will be
no lwrger than that OF Europe.
Altogether II looks as II there
would be no bread to waste IN any
quarter of the world for the next year
and IT should be possible to market the
whole United States crop for next year
without loss to the government.
! "I believe investigation would show
that q reduction OF even 80 per cent in
the price OF flour would mean a reduc-
ton of not more than or 3 cents In
the price of a one-pound loaf OF bread
because a large proportion of the In
icreased cost is due to higher wages
imanufacturin costs and cost OF other
supplies,
OTHERS MUST SOLVE THEM.
These problems. however. will have
ito be solved by some one else because
II and most of the other men in the
1000 administration VIII not 10 &OAo u
continue In the government service
after July /. He also must earn \ Nv
ing"
Mr.. Hoover said he had opposed the
fixing OF the price OF wheat, but Wal
lcverruled by congress. He advocated
la subsidy of two TO FIVE dollars an acre
on wheat planted. Had this course
been followed" he said. tho govern
,ment would have known precisely It!
liability at all times and could re-
lease wheat at prices to be determine
by the law of supply and demand II !
,wer at any time considered advisable
However. I do not dispute tn
greater wisdom of congress and 1t II
quite possible that the government
; may escape without any loss. Ever
II II does not I would be prepared Il
n defend the guarantee AZ having beet
the means by which the bread OF tn
world has been saved. The courag'
which the large American produc
tons gave to Europe was one OF thu
factors which won the war.
III the present outlook continue
the world may be as grateful for a bill
lion bushels wheat crop next year as |
has been for our nine hundred million
bushels crop this last year"