Bisbee daily review., 1920-11-06
PRODUCERS MUST CAST ASIDE ALL PREJUDICE
 lIII IIIc L RARNES
JULIUS H. BARNES

CHICAGO. Nov. 5.-Julius IT. Barnes, former director general Of the United States Grain corporation, to- day appeared before the marketing committee of IT of the Farmer Bur eau Federation offering opinion and suggestions on the subject ot grain marketing and outlining major influ- ences on price fluctuations on trad ing exchanges.
 In his statement MT. Barnes said that it was his firm conviction that the present system of grain market ing through open exchanges. by main taining highly competitive market at all times, worked to the advantage of both producer and consumer and that future trading was beneficial in that it furnished insurance for trad CTS against destructive losses on com mitments which would of necessity be taken in wider margins of profit without exchange hedging.
 Need Better Understanding
 He urged the development of bet ter understanding of the great ex- changes and cooperation with them in developing their full service and elim- mating their defects and abuses and commended the committee for its tenn per to Hay aside prejudice and pre- vious conceptions to learn the truth about basic facts on which sound mar keting must proceed
 Touching upon recent declinos m wheat prices which some agricul'er- al interests of the country have m- ed are unwarranted by the listing supply and demand. MT. Barnes said that the wheat producer had "escap- ed the full effect of deflation" because of the .''cushion found in future trad ing. He cited figures tending to show that the decline in wheat from the peak postwar price to the current lev el has been only IS per cent as against a decline of 6S per cent in po- tatoes for which there is no exchange market
 Imports Falling Off
 Similar comparisons reveal declines of 55 per cent in cotton, 47 per cent in beans and 46 per cent in barley. the statement said Indications that the deflation is worldwide in charac- ter and not confined to American farm products alone, MT. Barnes said. was found in the fact that imported farm commodities such as sugar and coffee fell off from 6l to 66 per cent during the same period
 Would Not Be Just
 In answer to a question as to wheth- CT it would be feasible for producers to market their own crops. Mir. Barnes said the present system main tained a lower trade toll between pro- ducers and consumer than would be possible in any system which elimin- ated hedging and that in his opinion any organization of farmers for price fixing would not be decreed just by the American public.
 Particular emphasis was given the statement that cooperative efforts of producers in local territories to elim- mate unfair practices where monopo- lies existed were not to be confused with a nationwide marketing system which would itself constitute mon- opoly.
 Should Be Encouraged
 The former. MT. Barnes declared. is to be encouraged. is sound in eco homie principle, and will succeed. while the latter is not sound in that it seeks to establish market influences other han the fundamental law Of supply and demand.
 First among constructive sugges- tions submitted by MT. Barnes was that "exact and accurate information
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