Highland recorder. (Monterey, Highland County, Va.) 1877-1972, 1919-01-10
S2OO,OOO,OOO is
LOSS ON WHEAT.
Legislation to Protect Price Will
Mean Government Taking
Over of 1919 Crop.
ESTIMATE BILLION BUSHELS.
Will Provide S6oo,ooo,ooo Revolving
Fund For Purchase of Grain at
$2.26 a BusheI-Government VIII
Sell at World Market Price.

ngt0n.-LegiSlatlOn to insure
the maintenance of the governments
wheat guarantee price has been draft
ed by the Depai tment Of Agriculture.
The legislation will practically mean
that the United States will take over
the entire 1919 wheat crop, estimated
from preliminary reports to be more
than 1,000,000,000 bushels, and sell it
at the worlds market price. This will
entail net loss to the government Of
an amount roughly figured at from
$150,000000 to $200,000,000-th diff
ference between the worlds average
market price and the price guaranteed
to the American. farmer.
A joint resolution to provide for this
action, approved by the Food Admin
istration and the Department Of Agri-
culture, will be introduced in few
days by Chairman Lever of the House
Committee on Agriculture. Its early
adoption is urged to enable the au-
thorized agencies to go ahead with
their plans for the tremendous task
Of taking over the biggest wheat crop
the nation ever had. The legislation
will provide for the following:
Extension of the food control act
relating to wheat, especially such
parts Of sections II and IA as are
necessary.
Authorization to the President to
create new agency for the work or to
continue the grain corporation.
Placing in the Presidents hands a
large fund, not less than $600,000,000,
which would be used as a revolving
fund
Sale of the wheat and for meeting
conditions arising out of the importa-
tion of wheat from foreign countries
Minor provisions covered will be
prevention of the sale Of 1919 wheat
in 1920 at the government guarantee.
"JuSt how the details of meeting the
guarantee will have to be worked out
I am unable yet to say" Mr.. Lever
says although in my own judgment
it will be necessary to take over the
entire 1919 wheat crop by the govern
ment, which in turn would sell it to
the public at what would be the pre-
vailing world price Of wheat.
"It is entirely possible, I do not
think probable, however, that the
world price of wheat would save the
government any loss at all. This, of
course, depends upon the amount Of
wheat produced in other large coun-
tries and transportation conditions"
Great wheat reserves are known to
be held in Australia, Brazil, India, Ar
gentina, and, it is believed, the 1919
paintings in those countries will be
exceedingly large, to say nothing of
increased yields that will be sought in
the European countries engaged in the
war;
The government guarantee at Chi
cago is 1926 per bushel. The world
market price is estimated variously as
promising to be from $1.70 TO $1.90 a
bushel. The difference between the
low and high price will be made up to
the American farmer, whose crop the
government is pledged to protect at
the stipulated figure.
Here are. figures showing tlle con-
ditions now confronting the country:
The planting in the fall of 1913 for
winter wheat is estimated at 49,261, 600
acres, an increase Of 165 per cent.
over the winter wheat planted in the
fall of 1917. If the same increase in
spring wheat is made there will be
planted next spring 26000,000 acres,
or total Of 75,261,00 acres. /.
The norwal pre-war export for ten
years was 11O,OO0.O00 bushels yearly
The estimate Of exports (wheat and
flour) for the 1918 crop are expected
to total 310,000,000 bushels.