Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-11-06
BARNES FAVORS
! PRESENT GRAIN
MARKET INC PLAN
Open Exchanges Are Advan-
tageouS Both to Producer
and Consumer; Future
Trading Beneficial, Says
(By The Associated Press)


Chicago, Nov. 5.-JuliuS H..
Barnes, former director general Of
the United States grain corpora
ton, today appeared before the
marketing committee of seventeen
of the farm bureau federations Of
fering opinions and suggestions on
the subject Of grain marketing and
outlining major influences on price
fluctuations on trading exchanges.
In his statement MIR. Barnes said
that 1t was his firm conviction that
the present system of grain mark
citing through open exchanges, by
maintaining a 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 traders against de-
structive losses on commitments
which would of necessity be taken
in wider margins of profit without
exchange hedging.
Urges Better Understanding.
He urges the development of a
better understanding Of the great
exchanges and cooperation with
them in developing their full serV-
ice and eliminating their defects
and abuses" and commended the
committee for its temper to clay
aside prejudice and previous con-
ceptions TO learn the truth about
basic facts on which sound market
ing must proceed"
Touching upon recent declines in
wheat prices which some agricul-
tural interests OF the country have
claimed are unwarranted by the
existing supply and demand, Mr.
Barnes said that the wheat pro-
Queer had escaped the full effect
of deflation" because of the
"cushion" found in future trading.
He cited figures tending to show
that the decline in wheat from the
peak postwar price to the current
level has been only IS per cent, as
against a decline of IS per cent in
potatoes. for which there is no
exchange market. Similar com
parsons reveal declines of 50 per
cent in cotton, Al per cent in beans
and 46 per cent in barley, the state
ment said Indications that the de-
flation is world wide in character
and not confined to American farm
products alone. Mr.. Barnes said,
was found in the fact that import
ed farm commodities, such as
sugar and coffee fell off from 61
to Sc per cent during the same
period.
Praises Present System.
In answer to a question as to
whether it would be feasible for
producers to market their own
crops, Mr.. Barnes said the present
system maintained n lower trade
toll between producer and con-
sumner than would be possible in
any system which eliminated hedg
ganization of farmers for price fix
ing would not he deCrced just by
the American public,
particular emphasis was given
the statement that cooperative eff
forts of producers in local terri
tories to eliminate unfair practices
where monopolies existed were not
TO he confused with a nation wide
marketing system which would
itself constitute a monopoly. The
former, Mr.. Barnes declared. Is to
be encouraged, is sound in ecOnom
ic principle and will succeed, while
the latter Is not sound in that II
seeks to establish market influ-
ences other than the fundamental
law of supply and demand.
Constructive Suggestions.
First among constructive suGGcs-
tones submitted by Mr., Barnes was
that exact and accurate informa-