Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-11-06
]. H. BARNES
SUGGESTS
REMEDIES
~as @ ~
Grain Expert Tells Farm
Bureau Committee About
Marketing Conditions

Chicago, Nov. 5.-Julius H. Barnes.
former. director general Of the United
States grain corporation, today APP
peared before the marketing commit
rec of seventeen OF the American
Farm Bureau federation, offering
opinions and Suggestions on the sub
ject Of grain marketing and ouu' ming
major influences on price fluctuations
on trading exchanges in a formal
statement touching upon every phase
Of grain marketing, after which he
expressed a willingness to answer
questions from members Of the ON
mitt6e.e ,-.
Mr. Barnes said that it was his con-
victiOn that the present system of
grain marketing through open ex-
changes, by maintaining a highly COM
petttive market at all times, worked
to the advantage Of both producer and
consumer, and that future trading was
beneficial in hat it furnished insur-
ance for traders against destructive
losses on commitments which would
be taken in wider margins of profits
| without exchange hedging.
Better Understanding Urged.
He urged the development of a bet
J ter understanding Of the great ex-
changes and cooperation with them
IN developing their full service and
eliminating their defects n abuses"
and commended the committee for Its
temper to LAY aside prejudice and
previous conceptions to learn the
truth about basic facts on sound mar
keting."
wheat prices, which some agricultural
interests of the country have claim
ed are unwarranted by the existing
supply and demand, Mr.. Barnes said
that the wheat producer had Escaped
the full effect Of the deflation'' be-
cause of the cushion found i'll fu-
ture trading. He cited figures tend
from the peak postwar price to the
current level has been only-.18s per
cent as against a decline Of GS per
cent in potatoes. for which there is
no exchange market. Similar COM
PARSONS reveal declines of SIS per cent
In cotton. 47'per cent in beans, and &c
per CEN in barley. the statement said.
Indications that the deflation is world
wide in character and not confined to
American farm products alone. Mr.
Barnes said, was found in the fact
that imported farm comm ODDITIES. such
as and coffee, fell off from 81
to 66 per cent during the same per-
iod.
lower Trade Toll Maintained.
In answer to a question from Il
committee member as to whether il
would be feasible for producers to
i, market their own crops, Mr.. Barne:
said the present system maintained q
lower trade toll between producer an6
consumer than would be possible ir
any system which eliminated hedging
and that in his opinion any organiza'
ton of farmers for price fixing would
not be decreed just by the American
; public.
Particular emphasis was given tn,
statement that cooperative efforts o
; producers in local territories to elimi
I nate unfair practices where monopo
lies existed were not to be confused
with a nationwide marketing system
which would itself constitute q mono
. poly. The former, Mr.. Barnes declar
, ed, is sound in economic principle
and will succeed. while the latter i
not sound in that it seeks to estab
fish market influences other than tn
fundamental laws of supply and de
Al mand.