Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1920-05-23

political honors, such as minister 70
Japan and Secretary OF State under
HBrrison.
.z-a--.-.al.-a..a- -------------si----.z
patient strength then waited the reap
pearancc Of foreign requirements which
must pay that National AIR Price the
iart however that the pressure of the
crop movement itself weighed down the
prDd ctr price until II .rlck the al
rpiiy, level which the Grain Corpp
ration wa authorized by law 10 paw
produced the mistaken impression on
the part at the grower that a minimum
price had been made u maximum, and
producer rcsrntmcntis too high a price
Ia pay Tor the security which absorb
ton by Government al minimum
price would thus arouse again.
Furnish security.
For three years. the actual and pu'
tcntinl buying of the Grain Corpor 81
ton maintained the foundation for
trade security and fur banking credit
un which the grain machinery of this
country has operated. Prior H. that
time. American rcsnursofulncss had 10y
tcst ui years developed the American
system Ut great central hedging mar
Ncts for future delivery. furnishing q
security against LOSSES which follow
violent change In the wheat price lo'
rl
without Abs security. We face nee.
srury rcadapialiun ~ the marketing
aud credit machinery which had lcara.
I'd to Junction upon that security
without those national markets, W. are
exposed t. the absorption & our CROP
surplus during thu crupmuying period
at UNFAIRLY low prices perhaps dictated
hy the buyers Tor foreign Governments.
W. rhould consider the difficulties oi
these Governments with great syInpl.
thy. hut We must src what steps can
Ice taken a. protect the rightiul inter.
osts ~ our own producers. Their com.
mi,mcnt H. a policy IL subsidy uf bread
tu their people II one foreign Ia the
American ideal and destructive at the
natural play 81 substitution by price
attraction The inability uf their own
importing merchants Ia carry their
~ II N'A.N NffillflNAANNNNAAH w ~ fhfAtf
ficicnt for the food needs ct their poo
pie. Is motto Tor Government buying
on their part. which may more sound.N
appeal Co our sympathy. But Ia all
events. "A price level made Tor American
farm produce. must. e. he fair. De- a
price IN which We az seller have had
some measure ~ influence ana SOM
protection.
Moreover the wheat guaranty al
itailf directed that the president shoult
take scas,u,hl, H,ps 20 provide ful
ard o. permit The establishment of =
ire, and opr nmarkci Tor the purchas"
ale aud handling II wh~it and wheat
roduo,s upon the expiration IL this
act
Different Than Other Grains.
In wheat. a. in uo other grain. the
pric" b. influenced bN crop development
iu some section oi the world ever,
mr.'h ~ the year. ard hy more eNact
entertainment 81 cuusumptiNc require
ruuig. nuctmtiug ss that consumption
lo,r under the price influence.
"Out ~ many years experience
banks and credit agencies had lcarnc'
that bcriusr 81 the hedging security
4 thus. markets against disaster g. th'
merchant. The D tension of credit Tot
grain handling WIS u1c of the svcur
rcdi functions 81 this country. Thu
ready credit Facilitated active cumprti
zion. which enabled large volume d"
! uG.u,ss uu relatively light capital bon
,cstmcnt This directly resulted IN a.
lowest trad" toll between producer an.
cunsumtr ~ any commodity in thu
country uu th, national price lev"
Indicated Ly th,e central market
moved the whole TOW of crop 90 ulti
mate consumer That flow naturally
sought the mort direct channels. no
always through thu- actual market
hut hcdgvd and made secure by trudr
u corresponding quantity in thus" mar
kots IN that flow th' natural arvuC.r
u~cd were several in number the coun
try point buyer M, terminal handler
The inland iurNarl'I thr u"ai,oafd ~
porter or the final miller. each ~ thrs
agencies making secure hN their hodg
INK USE - thee markets.. their owi
capital investment and their hafroNiug
sEainfI iuSftf hy price level changes
1t az oncr is,cumrs cNidrnt that
given quantity Of wheat uuwing iron
farm tp final msrsef Boz channels whi.l
naturally led entirely outside 81 thr'
actual TRADING markets and uassin.
through thr hards uf voral ns,U~Sar'
handlers IN that run produced ben an
hedging transactions en- thoSo cN
changes volume SEVERAL times that 81
the actual quantity Hat u t. the shal
! lowest II c,onomir logic that. hccau.D
81 that fact stamped those transaction
a. being wholly speculative. instead a
recognizing them ~ ~ the creates
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