The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1920-12-20
DECLINE IN WHEAT \
PRICES DUE IN
PART TO WORLD
WIDE CONDITIONS
Federal Trade Commission
Assigns Seven Specific
Causes; President Has
Certain Powers


Washington. Dec. 20.-The presi-
dent is without power under existing
law ito shut out wheat Imports"
but has apparently certain powers un-
der the Lever act to stop further
trading" the federal trade commits.
sion says in a special report to Pres
ident Wilson, made public today at the
White House.
The commission says that while
evidence is not available that future
trading Is respons Bile for the decline
In wheat prices, it does not appear
that future trading In wheat as al
present operating is useful service to
the grain trade"
It suggests, however, that If regula-
tory action Is to be employed. the
question be considered by congress
and that legislation mot connected
with war powers be enacted"
The comm ssion tells the presi-
dent that. because Of the failure of
the Chicago BOARD Of trade TO CO
operate, it was unable TO obtain ne
cessary information as to whether
there has been large transactions In
wheat futures Of Inanipulative char.
ucter.
AS to the concentrated purchases
OF wheat in this country. by foreign
government which have undertaken
to regulate at home flour prices ir-
respective Of the price OF wheat, The
commiss on declares that If these
purchases are to continue. "tae dis
ability OF the United States meeting
them through q selling organization
shc"'d ne carefully considered"
Tho commissions report Is based on
an investigation Of the wheat situa-
ton VIII ch the presiden. requested
It to make last October after Governor
Henry ] Allen Of Kansas and others
had urged him to bar Canadian wheat
importatioi.s and take such action as
was necessary to stabilize the rapid,
declining wheat market.
Declaring the decline Of wheat ap-
pears to be "in part due to country
wide and worldwide conditions" the
commission assigns seven specific
causes:
1.-THE outlook for an increased world
supply: concentrated buying by for
eign governments last spring, and
s!acl. purchases later; unprecedented
importat 'ons from Canada; the record
breaking yield OF corn In this coun-
try; the slackening of demand for
flour; the general tendency to de.
cl'r, In many commodit es; and the
change Of credits, with resulting aver
sion of distributors Of grain to ac'
cumulating usual stocks"
Discussing the barring of Cana
dian wheat the commission says 1t is
quest enable whether such a pro-
cecdlng would have the effect Its
advocates expeota. because the United
States and Canada both have surplus
es to export and will meet each other
In competition, either here or In Eu-
rope.
While the commission devotes con-
siderable space TO discussion OF
trading In wheat futures Il asserts
that Il is not now expressing an opin-
lon on this subject. as 1t would give
Il extended treatment" in FORTH
coming report.
Future contracts may have a legNi-
mate use for hedging" the commission
nys.
"In this connection It is claimed
that future trading performs an m
surance function where ordinary In
surance methods would not be prac-
ticablc and that undue restric ions
Of future trading such as would de-
prive the grain trade Of this service
might result In grain dealers re-
auiring larger margins and conse'
ouently result either In lower prices
to the farmer or higher prices to the
consumer.
without now expressing an opinion
on this subject Il appears that there
IL large volume Of future trading
that Is mere gambling. and involves a
great economic waste, the remedy
for this lies in congressional act on
to prevent trading which Is essentially
gambling.
"a limitation Of tho volume OF open
speculative trades in wheat. similar
70 he limitations placed on corn
speculation during the period OF gov
ernment control would probably tend
to reduce tho possibility OF manipula-
tive trading"