Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1919-01-02
ASK BIG FUND TO
BUY WHEAT CROP
Request Law to Protect U. S.
Grain Price.
SEEK AID TO GUARANTY PLAN
Food Administration and Department
Of Agriculture Send Memorandum
to House-Some of 1918 Yield
Still on Farms.

Washington, Dec 27.-Legislation to
make effective the wheat price guar
anty for the 1919 crop and at the same
time to safeguard the government
against losses was recommended to
congress by the department Of agr1-
culture and the food administration.
A memorandum sent to Representa-
tive Lever, chairman of the house ag-
ricuItural committee, made the follow
ing Recommendations:
First-Extension by congress beyond
June 1, 1920, OF the date for the gov
eminent purchase of the 1919 crop.
SecOnd-Continua of the food adj
ministration's grain corporation or
creation of a new agency to buy, store
and sell 1919 wheat that may be Of
fered to the government; and
Protest Against Other Countries.
Third-POssibe legislative provi.
sions to protaect the government
against wheat or tloIS brought in from
other countries during the period of
effectiveness of the guaranteed price
and also to protect buyers Of such
wheat as long as the wheat is in this
country and not consumed.
The memorial was compiled with
the approval of President Wilson, and
Secretary Houston in submitting it
said: "The government has made a
guaranty, and it goes without saying
that it must be made effective"
Regarding extension of the date of
government purchase the memoran-
dunn said: ut will be impossible to
carry out the guaranty as it is intend
ed by June l, 1920, and If producers
cannot sell their wheat to the United
States before that date and are left
with wheat on hand it will be felt
that the obligation of the United
good faith"
Funds Asked to Purchase Wheat.
'The government purchasing agen-
cy" the memorandum sets forth must
have ample funds to at all times pur-
chase throughout the United States at
the guaranteed price such wheat Of
the 1919 crop as may be offered to
it and also to provide storage faclli-
ties tG take care of the same by lease
or purchase of facilities now in ex-
istence or by building additional ia
CilitieS or both.
1.-THE appropriation will have to. be
on q basis to enable the guaranty
price to be maintained at all times by
purchase of wheat with funds provid-
ed by the government and without re-
tying on outside credit"
The food administration grain cor
poration is maintaining the price for
the 1918 crop with its capital of $780,
100000 and its credits combined with
the export demand for wheat.
Depends on Export Demand.
There is very large amount OF
the 1918 crop yet to be moved from
the FARMS" says the memorandum,
land it will take ali the resources of
the grain corporation and the most
careful attention to every detail to
carry out the guaranteed price for the
crop of 1913. In fact, if the export
demand should diminish, it is posi-
BILE that in order to maintain the guar
anteed price it may be necessary that
there be a further appropriation by
congress- On the other hand, if the
demand for export wheat should con-
tinue, it is hoped that on June l, 1919,
the grain corporation may have been
able to carry out the obligations Of
the United States as to the 1913 crop
without impairing its capital of $780,
100000"
Carrying out the guaranteed price
for the 1919 crop presents q much
more difficult situation, it was pointed
out. because the winter wheat acreage
is about 100000 acres larger than
that for 1918, and if an increase in
spring wheat is planted, the harvest
of 1919 may be in excess of that Of
1918, the yield for which is estimated
at OF 100000 bushels.
Exports of 1918 wheat is estimated
at about 10000 bushels, a larger fig
ure than can be expected for the 1919
crop. because of shipments from Can
ada, Australia, India and Argentina.
The 1919 crop for export, it was
pointed out, might sell in competition
with that from other countries at a
price considerably lower than the guar
anteed price, which probably would re-
suit in similar reductions at home.