Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1920-01-12
BARNES Warns
0 + u certainty
of Flour Prices

ss''sSus ~SbAVOt SSdS08 WI
June-Wheat and Flour Handlers
Told Of Hazards Possible - People
Show Tendency Towards Saving
New York, Jan. 11-Warning of
price hazards which may confront
wheat and flour handlers after the
withdrawal of government control
when the activities of the grain cor
porations are brought to an end in
June, was contained in circular
sent today by julius H. Barnes,
wheat director, to the holders Of the
$4,000 licenses he has issued.
Emphasis is placed by Mr.. Barnes
on the statement that The reduction
Of commitments to the minimum re-
suired for the conduct of necessary
present business commercial policy
for the grain trade upon the termi-
nation OF two years Of official stabili-
cation and in view Of the present
world situation.
That there is even now an element
Of the population which has demon
strated a desire to practice thrift is
evident from the reception given to
the grain corporations pure wheat
flour which the government recently
made available to the consumer in
rr,hoo
states. He also predicts that they,
as a national characteristic May
become as contagious as extrava-
gance has been," at the same time he
attributes recent prices advices in
certain grade as -four to restricted
transportation and extraordinary in Il.
difference to expenditures by Sec
ton Of our people,"
There is no guide to point the way
to commercial security" Mr.. Barnes
says. Individual judgment must
faced. We can only ward off the
play Of world wide factors of I'M
precedented potentiality and submit
information as accurate as humanely
possible, on which business policies
must construct. The grain corpora
TONS weekly reports Of trade data
will continue until June 1. They
should be studied.
"Our total wheat crop exceeded
that Of 1918. Much is said of the
relative scarcity Of strong wheats
The curious fact develops however,
that by continued requirements
from the southwest and the Pacif ;
coast, and because eastern mills
probably will draw their smaller
needs OF strong wheats from Canada
and the Argentine. the northwestern
mills can grind fully equal to last
years large crop and still cave the
end OF this crop year. a arge carry
over in the northwest than last year.
Exports for the past six months
are 100000 bushels less than last
year. Difficult finances abroad, for
cling utmost curtailment of purchas-
es. will continue. Present purchases.
still to be shipped. largely supply
foreign requirements for a consider.
able period. Cheaper rye will re-
place some wheat. TIL United
States can apparently export 50.o00,-
900 bushels of rye against 35,000,-
900 bushels last year.
with no immediate prospect Of
further purchases of -four by the
grain corporation. 1t il fairer to ask
the mills to discontinue their weekly
offerings until we can advise some
prospects Of further purchases. The
export outlet il open to them indi-
vidually without necessity for per-
mits.
Farmers. millers and dealers
(outside Of the grain corporation).
own and are carrying 437,O00,000
bushels of wheat, against $4,000. 900
a year ago: Seriously ponder on this
statement. After June, next, the
grain corporations authority to buy
wheat at the guaranteed prices ex-
pires and thereafter the security Of
that basis is withdrawn. The fact
that present prices largely rule over
the government guarantees should
not construct study Of conditions
which may develop and at a time
when that price assurance no longer
exists. Americas complex and deli
Cdt0 hCIAH6 OIL uCkOIC 1uu8I UO
preserved and prepared to function
when this agency retfres.
Price fiuctuation always is fol-
lowed by distress and loss. Wisdom
dictates the reduction of commit
ments to the minimum required for
the conduct Of necessary current
business. We should not feel that
the full responsibility Of this office
had been discharged without calling
attention to the prices hazard which
may exist for many months, knowing
that a large part of the producing
and distributing trades have been
by two years Of ofilcial
and assurance perhaps
not to fully realize the danger OF
over extended commitments under
the present extraordinary world sit
uation-"
o.