Daily capital journal. (Salem, Oregon) 1903-1919, 1919-03-07
S CENT LOAF Of Bread
NAY SOON CONE BACK
SAY FOOD OFFICIALS.
Plan Embraces Taking Over
flour Supply At Nominal
Profit IO hIillers.

Washington, Mar. The "nickel
loaf'' may soon return to the market
basket of the housewife, food admins
tration officials said. today. They are
working on plan said to be nearly
ready for submission to Herbert Hoov-
er and President Wilson to utilize the
billion dollar wheat price guarantee
fund for decreasing the price to bread
makers and still keep wheat prices at
1926 for the farmer.
The tentative plan, according to of
ficials, embraces the taking over of
tho flour supply of the country at a
aominal profit to the millars and sell
ing it TO the public at loss of So a
barrel. They express no doubt that the
foreign demand for wheat will be suf-
ficient to keep the wheat price up to
the governments guaranteed figure.
Bought at So
Officials state that with wheat at
1926 a bushel, the flour can be bought
fairly by the government for $S a
barrel after making allowances for all
the bi-products saved in making the
flour and for a fair profit.
But in order to insure the five cent
loaf the flour must cost not more than
SO barrel to the bread makers.
The plan considers the government
absorbing the loss Of $2 d barrel at
a total cost of $500,000,000. Thus the
consumer would get a five cent loaf
bread, the farmer the 1926 price and
the governments s appropriation be us
ed to decrease the bread price instead
of boosting the wheat price officials
pointed out.
Estimate Wheat Crop
The food administration and the de-
partment of agriculture in estimating
this years stimulated wheat crop
place the figure at about l,200,000,000
bushels. Of this, probably 650,O0U,00O
bushels viii be needed for domestic
use, allowing about $4,000, 600 bush
els for export and carry over. About
-300,000,000 bushels can be safely ex-
ported, it is believed, leaving the rest
for seed and other carry over needs.
This world wheat reserve of 100000
900 bushels which was unavailable be-
cause of shipping needs and which has
since been pouring into hungry Europe
willsbe exhausted long before the pres
ent crop is marketed, officials say. In
addition, about 300,000,000 bushels in
various localities, which has been held
as carry over, is already used up.
Many of the large wheat districts in
Russia, Rnmania, Austria, Germany
and parts of Italy and France this year
will produce only small portion Of
their normal crop.
Can Get Any Figure
So officials have no doubt that the
American export supply can be sold
at any figure asked for it. Great Brit
ain is now buying soiae wheat at about
81 25, but this is on contracts WHICH
have been held up because Of lack Of
shipping. The Liverpool market cannot
again control the world wheat price
until there is a world surplus of wheat,
officials state.
If the plan contemplated is APPROX
cd, all the exports will be handled by
the United States Grain Corporation,
which handled the food supply from
the United States to the allies during
the war.
Through them, the allies agree to ac.
cept the wheat at the New York price,
which is now about $2.40
Officials point out that the wheat
now being raised for export was to be
sent to Europe at this price had the
war continued and believed there
would be little objection to buying the
wheat at the high figure now.
Bring Bread Down First
The price of. bread, food administra-
tion figures show, has not increased in
proportion with the price Of wheat,
But the government is anxious to bring
bread down as the first and most vital
step ia decreasing the cost Of living.
For five years before the war the av-
orage price Of wheat was 81 cents, with
the average IS ounce loaf selling for
five cents. With wheat at 1926 bread
should he selling for fourteen cents to
maintain the proportion, but the aver
age price Of bread is only ten cents.
Out Of every 81 worth of bread the
farmers before the war received 70
cents His share is now 40 cents, Off
cials said.