The Kendrick gazette. [volume] (Kendrick, Idaho) 1892-1968, 1920-11-12
GRAIN MARKETING
|. SYSTEM NOW OK.
JULIUS ~. BARNES DEFENDS
TRADE IN FUTURES AND
HEDGING.
PROOuCERANO CONSUMER GAIN
Other Commodities Decline More Than
Wheat, He Tells Farm Body
Hits National Pools Local
Cooperation Helpful.

CHICAGO.-Julius H. Barnes, for
mer director general Of the United
States grain corporation recently ap-
peared before the marketing commit
tee of ~ of the American Farm Blu
reau federation offering opinions and
suggestions on the subject of grain
marketing and outlining major influ-
ences on price fluctuations on trading
exchanges in a formal statement
touching npOn every phase of grain
marketing, after which he expressed
willingness to answer questions from
membtrs of the committee.
Mr.. Barnes said it was his convic-
ton that the present system OF grain
marketing through open exchanges, by
maintaining highly competitive mar
ket at all times, worked to the advan-
tage of both producer and consumer,
and that future trading was beneficial
in that it furnished insurance for trad
ers against destructive losses on COM
mitments which would be taken in
wider margins of profits without ex-
change hedging.
Points Sound Marketing Moves.
He urged the development of bet
ter understanding of "the great ex-
changes and cooperation with them in
developing their full service and elm
mating their defects and abuses" and
commended the committee for it's tenn
per to "lay aside prejudice and pre-
vious conceptions to learn the truth
about basic facts on sound marketing"
Touching upon recent declines in
wheat prices, which some agricultural
interests of the country have claimed
are unwaranted by the existing sup
ply and demand, Mr.. Barnes said the
wheat producer had escaped the full
effect of deflation" because of the
cushion" found in future trading.
Wheat Comparatively High.
He cited figures tending to show
that the decline in wheat from the
peak postwar price to the current
level has been only .1S per cent, as
| against a decline of 6S per cent in po-
tatoes, for which there is no exchange
market. Similar comparisons reveal
declines Of VS. per cent in cotton, Al
per cent in beans and as per cent in
beans and 46 per cent in barley, the
| statement said. Indications that the
deflation is worldwide in character
and not confined to American farm
products alone, Mr.. Barnes said, was
found in the fact that imported farm
commodities such as sugar and coffee
| foil off from Al tO Se nor roDf drr;po
the same period.
| In answer to question from COM
mittee member as to whether it would
be feasible for producers to market
their own crops, Mr.. Barnes said the
present system maintained a lower
trade toll between producer and con-
sumner than would be possible in any
system which eliminated hedging and
that in his opinion any organization of
farmers for price fixing would not be
decreed just by the American public.
Scores Monopoly Cooperation.
Particular emphasis was given the
statement that cooperative efforts of
producers in local territories to elimi.
nate unfair practices where monOpo-
lies existed were not to be confused
with nationwide marketing system
which would itself constitute la mon
opoly. The former, Mr. Barnes de-
clared, is sound in economic principles
and will succeed, while the latter is
not sound in that it seeks to establish
market influences other than the fun
| damental laws of supply and demand