The Washington herald., 1920-03-09
EXPLAINS NEED
OFFLOURSALE
Must Be Disposed Of on
Credit or Spoil, Says
Barnes.
100000 BBLS. SURPLUS
Grain Purchased by Gov
eminent Solely to Protect
Guarantee Price.
100000 BBLS. SURPLUS
(By Herald Leased wireJ


New York. March S.-Julius II.
Barnes. United States wheat direc-
tor, has issued the following state
ment regarding the plan to have
the United States Grain Corporation
sell 100000 bushels Of -four on
credit to the nations of Central
Europe which are facing starvation:
'The Grain Corporation for two
years has protected the Presidential
wheat price guaranty by purchases
of wheat and wheat -four at the
guarantee basis. In three years its
purchases of wheat and wheat -four
have amounted to over 709.O00,009
bushels. 1t Is probable that In buy
ing continuously at the guarantee
price In this manner il has saved
the farmers of the United States
over $1,000. 5000. 900. which they
would have lost had the price, un-
der the pressure of crop movement.
sunk below the guarantee.
No Right to Hoard.
Having thus protected the ma
tional promise to the farmer. the
Grain Corporation had no right to
hoard such purchases whv1 prices
advanced, and therefore it's pur-
chases OF wheat and -four were i'm
meditaely for sale, at2all times, basis
OF cost plus accrued charges. T.is
policy of buying only at the guar
anteed price prevented anr purpose
OF dealer, miller or Spectator selling
to the Grain Corporation at ad-
vanced prices.
In these operations the Grain
Corporation accumulated, as far
back as last October. a stock of
flour exceeding 100000 barrels.
For almost six months it has tried
to sell this flour for cash, basis Of
cost plus accrued charges, at home
and abroad. 1t has just completed
an extensive advertising campaign
in America which did expand the
use of soft winter flour measurabIy.
but its sales in all directions have
not more than equalled the current
purchases OF flour, which it was
obliged to make to prevent the
farmer price sinking below the ma
tional guarantee.
Last Years Crop Peculiar.
The wheat crop last year was
peculiar-a large yield of winter
wheat and a small yield of stryng
spring wheats. The strong wheats
ties OF flour. which have been popu-
lar in America, and that character
of wheat has sold. by supply and de-
mand. far above the guarantee. ana
necessarily, far above the price aSk-
ed for the soft winter flours. Broad
ly speaking, there has not been a
day when the flour consumers OF the
United States could not buy some
character of standard flour at tho
equivalent of the guarantee wheat
price, even though special qualities
of flour were at the same time SELL
ing far above. There iS no reason
why our people should not exercise
a preference in that way it they
wish to, but they must be prepared
to pay for their preference for pre-
MUM flours when natures yields
are so erratic.
Can't Sell for Cash.
Now we are approaching warm
weather. with over 100000 barrels
of -four in the hands of the Grain
Corporation, bought on the Guaran-
ted basis. We have exhausted our
efforts to sell this -four for cash
at home and abroad. l have told
the House Rules Committee that
under the obligations imposed on
me by the wheat guaranty act.
must use the authority to sell for
credit when sales for cash are not
possible. Markets abroad needing
this -four are those of nations that
are stripped of money. but whose
credit, resting on their national
character and national resources.
vii undoubtedly be redeemed in
time. In conference, therefore. with
the Treasury and State departments,
the Grain Corporation will work out
the method of delivering this -four
to these needy sections abroad and
accepting their obligations for it,