The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-10-14
STANDARDIzE
FARM PRICES
is HIS PLAN
Former Food Head Opposes
Adjustment of Markets.
Says They're as Important to
Public as Banks.
STOP WOULD HURT GROWERS
Hoover Voices Warning to
Farmers and StOckmen.
Addresses Representatives of
Farm Bodies This Morning.
PRICE DROP WILL Be SLOW
But 1t VIII Come Gradually, Ex-
pert Tells ROtarians.
Says Labor viii Accept Wage
Cuts Then.
Hoover Voices Warning to
Farmers and Stockmen.
Addresses Representatives of
Farm Bodies This Morning.
PRICE DROP WILL Be SLOW
But 1t VIII Come Gradually, Ex-
pert Tells ROtarians.
Says Labor Will Accept Wage
Cuts Then.

Government regulation rather than
abolision of boards of trade was urg-
ed by Herbert Hoover in his talk be-
fore the farmers and stockmen.
Hoover did not follow Senator Cap
per's idea for wiping out of specula-
tion in grain futures-particularly
where such speculation is on a legiti-
mate basis. He declared that the re-
atoms of the board of trade toward
the public was as important as that
of banking
There was half hour of busy cross
questions and answers when Hoover
talked in the supreme court chamber
this morning and swung from coop
erative marketing to the big market
problem-the board of trade. HooV-
er's defense of the board was not an
alibi for the wild speculator, altho he
pointed to service which he performed
in fixing an active market. Any ef-
fort looking to abolition of the present
system of marketing, he declared,
would result in calamity to the crop
growers. Such sentiment was en-
dorsed by several farm organization
heads.
Warning to Growers.
There was a warning to the grain
growers in Hoover's talk on coop
ative marketing That warning was
too radical a reorganization of estab-
lished market policies.
There is an idea that some sort
of monopoly of agricultural products
can be brought about" he said. II
have no notion such a thing will hap
pen this side of the millennium. 1 am
not convinced that over night we can,
thru cooperation, create some new
economic condition. Under present
methods we would do no more than
bring bankruptcy upon ourselves"
A Standardization Plan.
Great service to the public and to
the agricultural industry could be
worked out, the food expert declared.
thru Standardization plans. He
pointed to the fruit growers associa-
tion, establishment of farmers ele-
vators and organization for standard
ization of livestock. These practices,
he said, had resulted in the farmers
out unnecessary charges between pro-
ducer and consumer.
Cooperative marketing" he said,
"must be by commodities. 1t cannot
successfully be on both wheat and
potatoes-wheat with the highest de-
with the lowest"
Then came deluge of questions re-
garding the board of trade, specula-
tion and futures.
Board a Public Service.
The board performs a great pub
lie service in that it reflects demands
and supplies for persons dealing on
the markets." said Hoover. The
criticism is that men 18th larger and
prior knowledge are able to take ad-
vantage of situations for their per
sonal benefit. This is an action against
public interest.
Against this we must find some
remedy-some constructive policy OF
method of handling and regulating
this great institution. Rather than the
promotion of some destructive method,
we must fix some policy of regulation.
The board is just as useful and just
as important as the banking business
The board should possibly be brought
under some sort of regulation. But
there can be no question that they
perform real public service.
Speculator Protects Himself.
81 doubt If 2 per cent OF the grain
of the United States is actually moved
where the speculator had not protect
ed himself against the markets by a
hedge. This ability, tho, enables the
men TO trade on a small margin II
adds to the value and service of the
board and makes possible the handling
OF our grain on the smallest possible
margins
Hoover answered questions as to
whether the speculator should be
wiped out. He said he had an open
mind on tho subject
There is a difference between the
speculator and the practical trader.