The Washington herald., 1920-02-19
Country's Trade Leaders
Join in Final Demand for
Control Of Wheat.
REPRESENT 10000 MEN
Corporation Praised as OBJ
jections Are Filed With
Senate Committee.

|rain Corporation was registered
by representatives of more than
10000 grain dealers and mill OPP
orators at a final hearing of op-
ponenJs before the Senate Agricul-
turaI Committee yesterday.
A brief signed by eleven heads of
boards of trade. chambers of com
merce and grain exchanges in the
principal cities of the country de-
manded that the price guarantee to
the farmers for the 1919 wheat crop
should be made good. and that the
United States Grain Corporation
continue to function.
Praise for Corporation.
Fred c. Vincent, of Kansas CITY.
representing the farmers and grain
Exchanges of the great Southwest
ern wheat producing region. said:
We have heard much criticism of
the United States Grain Corporation.
| wish to say in behalf of wheat grow
rrs and dealers in my section that we
know of no organization that could
nave handled the abnormal situation
that has confronted US in the past two
years more effectively than the United
states Grain Corporation. 1t is direct
ed by men of ability in a business-Iike
manner. II has stood ready to take
wheat off the hands of dealers at the
guaranteed price in spots such as GER
tain Gulf ports where a temporary
SIut of wheat would otherwise have
para!yzed the market and caused un-
told loss in demurrage. As a matter
of fact. the Grain Corporation has
relieved situations such as l have de-
scri5ed by purchasing millions of
bushels. thus stabilizing more millions
7f dollars loaned by banks and COM
mission merchants on wheat collateral.
The public should bear in mind that
the government price is not the maxi
mum price. bUt.-the minimum price.
In the EAST three months farmers have
secured. in some cases. 20 to 30 cents
4 bushcl in excess of the government
prlce None the less this guarantee
mas been invaluable as a stabilizer of
an entirely abnormal market.
No greater calamity could happen
10 the Southwest than the withdrawal
Of this guarantee
Protest From Baltimore.
W II. Hayward, president Of the
Baltimore Chamber of Commerce,
denied that the grain exchanges
have jugglcd with wheat prices, and
asserted that the Baltimore Cham
her Of Commerce and Grain En-
-hanGe would view with alarm any
proposal to abolish the Grain Cor
pcrauon.
At present" he said. amy holder
"f wheat, or paper for which wheat
is collateral, can take his receipts
or note to the United States Grain Cor
pOration and convert it into cash at
once If this anchor of confidence
is removed, a heavy margin on
wheat paper would be required. due
10 the fact that wheat would no
longer have a fixed minimum
value
l.. r. Gates. president Of the Chi
ica-o Board of Trade. said:
Il do not like government inter
terence in business, but the idea
that the fluctuations in the price of
wheat are due either to the dealers
or the Grain Corporation is absurd
The government obligation to the
farmers. miIlers and grain dealers,
which the United States has assum-
cd and the Grain Corporation has
30 far carried out faithfully. must
b" continued or else the present un-
settled conditions will soon verge
on panic"
Northwest soIidIy Opposed.
=. b. Wells. of the Minneapolis
Chamber of Commerce, said:
The grain trade of the North
west is solidIy against this bill.
We want no government control
after the expiration of the Grain
Corporation, and believe that the
law Of supply and demand operat-
ing in open exchanges is the right
way to handle the grain business"
But we feel that the services of
the Grain Corporation have been in
dispensable. and are convinced that
it would be an impossibility to Gre
ate a new organization or to turn
over to an old organization the Ii
vast sums of money, contracts
made on a government guarantee,
without producing chaos. 1t would
upset the wheat market not only
in this country. but abroad. The
government would probably lose
heavily, unless it actually repu-
dated it's obligations. 1t would be
impossible to transfer the functions
Of the Grain Corporation to the
Bureau of Markets or any other
agency. The effect would be as dis
astrous as the abolishment of the
guarantee. for dealers who have
Iaims on the Grain Corporation
Snow that they can cash them AZ
1nCe.
Under the Bureau of Mark
,or instance. every obligation would
coNriSUEp on PAGE ErGHr.