The Birmingham age-herald., 1920-08-24
Daily Financial Gossip

hand. For example, the government
 guaranteed to the farmers payment
 of $2.26 a bushel. But the world de-
 mand for wheat and speculation based
 upon that demand, made it possible to
 force up the price of wheat for imme-
 diate delivery to almost S4 a bushel.
 The farmer did not receive s4 for each
 bushel he marketed. He took the
 s2.26 which the government guaran-
 teed or paid, and other persons thaa
 the farmers made large gains due to
 the higher price wheat commanded
 than the price fixed by the govern
 ment.
 AN OPEN MARKET
 Had the government not interfered
 and an open market had been main
 tained speculation of this kind would
 not have been possible. The enormous
 yield of food grains must, if it is to
 be of value to the farmers and to the
 country, be justly distributed. Fur
 thermore, this distribution must be ae-
 complished in few months. Were
 there not machinery provided by the
 grain exchanges, and by that greatest
 of all of them, the Chicago Board of
 Trade, adequate distribution would be
 impossi ble.
 Professor James E. Boyle, of Cornen University, who has just finished a careful study of agricultural condi- tions, warmly favors the policy of trading in futures, saying that by this method the farmer can be assured against loss. Trading of this kind is now not confined to grain. Professor Boyle calls attention to the fact that the wonderful apples which are grown in the states of Oregon and Washing ton. are now being sold each year while the apple trees are in blossom. So also in Illinois and Indiana, future trading in farm products other than grain, is carried on. The cooperative farmer organizations in California, marketing their raisins, walnuts, prunesI almonds. and apricots on what are called forward contracts.
 NO FINANCIAL CRISIS When in mid spring or early in the
 summer, it became evident that the farmers were to harvest, if not a record crop. at least bumper one, reports were in circulation that the bankers of the United States were apprehens- i've lest the financing of the crop movement would cause great strain upon credit than could be borne. Now apprehension of this kind no longer prevails. Enormous as the harvest is, it will be well financed. Throughout the west and northwest, the banks are now aidings in this movement.
 George M. Reynolds, who Is presi- dent of the Continental and Commerce Bank of Chicago, speaks with confi- dence of the ability of the banks to finance the movement of the crops. He is quoted as having said that the shrinkage of Wall street stock market loans by as much as several hundred
 million dollars since early spring, is likely to aid in some extent, in ths financing of the crop movement. New ertheless. the chief part is that financ- ing will be done by the west with Chi cago as the center Presidential poi- tics, of course. do command a great deal of interest. So also do the propo- sitions which have in view the fund.- ing of the debt which the nations of Europe owe to the United States. But | just at this time the matter of pre- emi- l nent importance Is the marketing and distribution of the stupendous har- west of 1920.