The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1919-02-27
FEDERALB BANK ]. 7.
Sees DEMAND ! /: !.
!: FOR PRODUCE: !. !:
next YEARS ]i S
E. G. QuaInme, in An Inter-
! view, Looks for No Reduc- :
:, ton in Essentials = =.
MARGINS WILL REMAIN >.
APPROXIMATELY SAME
---
Government Could Buy All
Wheat Crop and Sell at 81.
Profit If 1t Cared To .".5-'
(By United Press.)

St. Paul, Feb. 27.--"There will be
a demand for everything we can pro-
duce for the next two years at least, "
declared E. G.. Quam1ne, president Of
the st. Paul Federal Land bank, in an
interview with the United Press. -
European countries, swept by the
war, will be unable to re-establish
themselves and become self-sustain-
ing within that time" he said. =:
He looks for no reduction in pro-
duction of essentials, as result Of
signing of the peace treaty, at least
for many months. -~
- "Prices will gradually go down, I"
he said, "but the farmer and every
one else will make just as much
profit, because all living essentials
will be reduced in cost proportionate-
ly. Margins will remain approxi-
'mately the same" -
He pointed out that the so-called
1926 wheat price guarantee" is
now properly called a guarantee"
but emphasized that last year it was
improperly called guarantee" He
said it should have been called a
1926 limit" ",~- s- ~ ~
"If the government had not limit
ed the price of wheat to a little more
than two dollars bushel, and per-
mitted the law of supply and demand
to continue, wheat would have gone
to FIVE. six or seven dollars a bushel
during the war;. Quamme asserted.
"Take cotton, or Instance" he said
by way of explanation. '"This product
was not controlled by the government
but prices were guaged by the law OF
supply and demand. Cotton was 8
and Z cents pound prior to- the
war. During the war it jumped to
about so cents pound. The same
situation existed and still exists with
regard to rice, tobacco and other pro-
ducts. If wheat prices had not been
limited by the government they
would have jumped in proportion.
Lost War Profits.
''Thc wheat raiser lost war profits
that came to other producers as a
result Of government restrictions. De-
spite the fact that he was forced to
pay twice as much for machinery,
labor and materials, he received no
more for his product. He was de-
prived of profit he was entitled to
and now it is up to the government
to guarantee that he will not suffer
on Investments he has already made
for this year.
"Winter wheat is already in. The
farmer already has made arrange
ments for a record crop this year.
He has purchased machinery and en-
gagged help to gather the crop. The
spring wheat grower has already pur-
chased his grain and made other in
vestments. This was done before the
armistice was signed. The govern
ment asked him to do this in good
faith. The government, then, must
keep faith with the farmer.
"Those who are afraid it will cost
the government billion dollars to
make good the $2.26 wheat guaran-
tee do not know the situation. The
government is in position to make a
profit on that investment if it sees fit
to do so.
u. S. Could Profiteer.
''If the government should buy
up all the wheat at 1926 bushel
it can sell it for that. If there is a
surplus to be sold to the allied coun-
tries the government can make a
profit on it. The government cannot
possibly lose anything by guarantee
ing the wheat price for this year and
it certainly could not go back on the
farmer who already has made ready
for the crop.
However it is not expected that
the crop this year will be tremen-
dously large The farmer has planted
his ground to wheat now for two or
three years and this naturally pulls
down production.
Another angle, is that the farmer
who answered the governments plea
to produce wheat could make more
money growing other crops. Flax,
for instance, is highly profitable
crop and surer if the ground is right.
There is more money in the dairy
business, too. Many farmers would
have purchased stock and grown feed
crons rather than grow wheat"