The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-15
WHEAT PRICE DUE
FOR SPEEDY FALL
T.. S. Director Says Reduction
All Along Line Will Reach
Consumer.
INDUSTRY IN AGREEMENT
Conference Results in Decision
to Allow Law Of Supply and
Demand to Operate.

Following conference yesterday with
representatives OF the grain industry,
including grain handlers. niliers. jobbers
and bakers Julius II. Barnes United
states Wheat Director. said that an i'm
mediate reduction in the price Of wheat
all along the line from the producer TO
the consumer is assured.
The big point OF interest TO all con-
sumers is that the conferees agreed all
wheat trading should be only on the
guaranteed price OF S2.26 q bushel, fixed
BY Congress for the producer, and IL the
world market price for wheat, as fixed
BY the law of supply and demand. re-
suits in a lower basis the consumers
should have the benefit of that price.
The Wheat Director will pay the differ
erence between the Government price
and the world market price to the farmer
out OF the $1,000 900. 900 fund the Gov
eminent appropriated for that purpose.
Mr. Barnes Issued this statement
There was general agreement that
in order that all the wheat producers
o. the country should secure equal
benefits. that the various trades could
he bound by contract to see that wheat
trading should be only on the guaranteed
price, and, II lower basis was justi.
0e0 VIII tHt uCNtdOpI1enIH OF WOTlQ
factors as the season advanced. this
lower basis should be made to reach the
consumer by trade agreements with
millers and manufacturing facilities the
wheat director making the readjusting
basis effective by the payment Of the
difference as allowed under act of Con-
grsss.
In return for protection against
fall in price, after the guaranteed price
had been made for wheat bought, the
wheat director would require from the
various trades contract obligations by
which their trade practices and margins
Of profit would be subject to review and
control BY the wheat director.
ut was suggested. for instance, that
the mills agree that their total gross
operating profits between wheat bought
and the finished products sold should
not exceed an agreed basis per barrel
Of -four manufactured. thus assuring
immediate reflection to the consumer OF
any reduced price Of wheat supplied to
the mills
The jobbers expressed a willingness
also to contract that their handling
margins should not exceed the price
fixed on an agreed basis, thus making
Immediately effective lower retail
price of -four when made by the mills
on readJusted wheat basis.
THE bakers were willing to enter into
contract by which they would reflect
al cncc in their products the lower price
Of -four made effective by the mills. In
this way down to the retail trade there
Is thought to be an assurance that a re
duced price of wheat should be effec-
tive Immediately all down the line.
Some Of the Western Delegates ex.
pressed the view that certain sections of
the producing wheat country had de-
veloped sentiment that wheat next
year might be worth more than the
guaranteed price in the open markets,
but the general view was that the crops
promised so we'll that any Withholding
from the market under such sentiment
would be unapprec!able in the total VOL
tine, and that most growers would be
ready to market at the guaranteed price,
thus sharply reducing the present price
OF wheat and facilitating a lower -four
price with the new crop movement.
New wheat will be moved In Texas
in thirty days. and from the present out
look in six weeks more they will begin
a large movement of new winter wheat.
In order that seaports and interior mar
kets should not be choked by congestion
and blockade the general opinion was
mat the Grain Corporation should con
tinue the cooperative control with the
Railroad Administration of the move
ment Of cereal and cereal products into
all the markets by the permit system OF
car shipment.
1T was developed during the meeting
mat although vessel movements to ports
last fall were especially erratic, accen-
mated by the necessity OF .divertins
toodstuns for motor trucks and NUM-
lions to press the fighting on the west
ern front when the German line began to
give way. yet the permit control sue
ceeoed In preventing any actual block
ace while the really astonishing total
OF 3.5Oo,00o,O00 bushels of grain were
moved IN nine months. from July /
through elevator and mill facilities OF the
country, although the height OF the
gram at one time in these elevators was
ess than half a billion bushels.
rms means a total turnover of sever
umes IN nine months. which Is only pos.
sole II the most liquid condition OF
rA'road grain transport prevailed"