Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1920-11-12
GRAIN MARKETING
SYST Tenn NOW ok.
JULIUS II. BARNES DEFENDs
TRADE IN FUTURES AND
HEDGING.
PRODUCER AND C0NSUMERCA|N
Other Com modities Decline More Than
Wheat, He Tells Farm Body.-
Hits National Pools Local
Cooperation Helpful.

CHICAGO Julius II Barnes, for
mer director general of the United
States grain corporation recently ap-
peared before the marketing commit
tee OF IL of the American Farm Blu
reau Federation offering opinions and
suggestions on the subject OF grain
marketing and outlining major influ-
ences on price fluctuations on trading
exchanges in formal statement
touching upon every phase of grain
marketing after which he expressed
II Willingness to answer questions from
membtrs of the committee
Mr.. Barnes said Ii was his convic-
ton that the present system Of grain
marketing through open exchanges, by
maintaining Il highly competitive mar
ket at all times, worked to tho advan-
tage OF both producer and consumer,
and that future trading was beneficial
in that 1t furnished insurance for trad.
ers against destructive losses on com
mitments which would be taken in
wider margins of profits without ex-
change hedging.
Points Sound Marketing Moves.
He urged the development of a bet
ter understanding of the great ex-
changes and cooperation with them in
developing their full service and elm
mating their defects and abuses" and
commended the committee for it's tenn
per to Nlay aside prejudice and pre-
vious conceptions to learn the truth
about basic facts on sound marketing"
Touching upon recent declines in
wheat prices, which some agricultural
interests of the country have claimed
are unwarranted by the existing sup
ply and demand Mr.. Barnes said the
wheat producer had escaped the full
effect Of deflation" because OF the
! cushion" found in future trading,
! Wheat Comparatively High.
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 decline of IS per cent in po-
tatoes. for which there Is no exchange
market Similar comparisons reveal
declines of t55 per cent in cotton, AZ
per cent In beans and 46 per cent in
beans and AZ per cent in barley, the
statement said. Indications that the
deflation is worldwide in character
and not confined to American farm
products alone, Mr.. Barnes said, was
found I'm the fact that imported farm
commodities such as sugar and coffee
| nf tf,
the same period.
| In answer to question from com
mittee member as to whether it would
be feasible for producers to market
their own crops, Mr. Barnes said the
present system maintained lower
trade toll between producer and con-
sumer than would be possible in any
system which eliminated hedging and
that in his opinion any organization of
deereed just by the American public.
Scores Monopoly Cooperation.
Particular emphasis was given the
statement that cooperative efforts OF
producers in local territories to elimi.
nate unfair practices where monopo-
lies existed were not to be confused
with a nationwide marketing system
which would itself constitute a mon
opoly The former, Mr.. Barnes de-
clared, is sound in economic principles
and will succeed, while the latter is
not sound in that it seeks to establish
market influences other than the fun
damental laws of supply and demand