The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-03-12
BARNES TO Sell
FLOUR ON time
AMERICAN HOUSEWIVES DECLINE
TO BUY SOFT WHEAT BRANDS AND
PAY HIGH PRICES FOR HARD VA
RIETIES,

Julius II. Barnes, United States wheat
director, has issued the following state
ment regarding the plan approved by
congress which authorizes the United
States Grain Corporation to sell $780,
600 barrels of flour on credit to the
nations Of Central Europe which are
facing starvation.
THE grain corporation for two years
has protected the presidential wheat
price guaranty by purchase of wheat
and wheat flour at the guarantee basis.
In three years. its purchases OF wheat
and flour have amounted to over seven
hundred million bushels. 1t is proba-
be that in buying continuously at the
guarantee price in this manner it has
saved the farmers Of the United States
over one billion dollars which they
would have lost. had the price. under
the pressure of crop movement, sunk
below the guarantee.
Having thus protected the national
promise to the farmer, the grain cor
poration had no right to hoard such
purchases when prices advanced. and
therefore its purchases of wheat and
flour were Immediately for sale, at all
times, basis of cost plus accrued
charges. This policy Of buying only at
the guarantee price prevented any pos
sibility OF dealer, miller, or Spectator
reselling to the grain corporation at
advanced prices.
In these operations the grain cor
poration accumulated, as far back as
last October, stock Of flour exceeding
five million barrels. For almost six
months it has tried to sell this flour
for cash, basis of cost plus accrued
charges, at home and abroad. 1t has
just completed an extensive advertising
campaign In America which did eX-
pand the use of soft winter flour meas
urably; Sut its sales, in all directions,
have not more than equalled the cur
rent purchases Of flour which it was
obliged to make to prevent the farmer
price sinking below the national guar
antee.
THE wheat crop last year was pc
culiar; a large yield Of soft winter
wheat, and a small yield Of streng
spring wheats. The strong wheats are
required to make certain qualities of
flour which have been popular in
America and that character of wheat
has sold, by supply and-demand, far
above the guarantee, and, necessarily.
that quality of flour far above the
price asked for the soft winter flours.
Broadly speaking, there he not been
a day when the flour consumers of the
United States could not buy some char
dIlSF Vi db Iilb eQulNd-
lent OF the guarantee wheat price. even
though special qualities of flour were
at the same time selling far above.
There is no reason why our people
should not exercise a preference in
that way il they wish to, but they
must be prepared to pay for their pref
erence for premium flours when ma
lures yields are so cratic.
Now we are approaching warm
weather, with over five million barrels
Of flour in the hands of the grain cor
poration. bought on the guarantee
basis. We have exhausted our efforts
to sell this flour for cash, at home and
abroad. l have told the house rules
committee that under the obligations
imposed on me by the wheat guaranty
act, / must use the authority to sell
for credit, when sales for cash are not
possible Markets abroad needing this
flour are those of nations that are
stripped OF money, but whose credit.
resting on their national character and
national resources. will undoubtedly be
redeemed in time. In conference,
therefore, with the treasury and state
departments, the grain corporation will
work out the method OF delivering this
flour to these. needy sections abroad
and accepting their obligations for it.