The Birmingham age-herald., 1920-01-12
\ kA|SER'S SURRENDER GRAIN CORPORATION
 ID ENTENTE WOULDIW|LL PURCHASE NO. MAKE SAINT OF HIM, MORE WHEAT, SAYS
 SOCIALIST DECLARESD|RECTOR BARhxSI
Warning Against Fluctuat- ing Prices That May Fol low End of Government Control of This Farm
 Product
Rx Au.cl.,,a rr.,,


 z New York, January u.-Warning of prize hazards which may confront wheat and flour handlers after the withdrawal of government control when the activi- ties of the grain corporation are brought to an end. in June. was contained in d circular sent today by Julius H. Barnes, wheat director, to the holders of the 42AuQ licenses he has issued
 Emphasis is placed by Mr. Barnes on the statement that 'the reduction of conn naitments to the minimum required for the conduct of necessary current busi- nesss will be a wise commercial policy for the grain trade upon the termination of two years of official stabilization and in view of the present world situation. That there is even now an element of the population which had demonstrated a desire to practice thrift is evident from the reception given to the grain corpora tfon's pure wheat flour which the gov ernment recently made available to tAe consumer at reduced prices, the wheat director states. He also predicts that thrift as a national characteristic may be contagious as extravagance has been At the same time he attributed recent price advances in certain grades of flour to restricted transportation and extraordinary indifference to expendi- lures by section of our people.
 There is no guide to point the way to commercial security MT Barnes says. .Individual Judgment must soive unusual problems, soon to be faced. We can only warn of the play of worldwide factors of unprecedented porentiality, and submit information, as accurate as hu- manly possible, on which business poii- cies must construct. The grain corpora tions weekly report sof trade data will continue until June l. They should be studied
 : of 1918. Much is said of the relative scarcity of strong wheats. The curious fact develops, however, that by continued repIacements from the southwest and me Pacific coast, and because eastern mills will probably draw their smaller needs of strong wheats from Canada and the Ar genuine, the northwestern mills can grind fully equal to last years large produc- tion and still leave, at the end of this crop year. a larger carry-over in the northwest than last year.
 Exports for the past six months are 8 000, ,O00 bushels less than iast year. Diff ficult finances abroad, forcing utmost curtailment of purchases will continue. Present purchases, still to be shipped. largely supply foreign requirements for a considerable period. Cheaper rye will replace some wheat The United States can apparently export 50.0oo,00 bushels Of rye, against 35 o0O,o0o bushels last year.
 With no immediate prospect. of fur ther purchases of flour by the grain cor poration, it is fairer to ask the mills to discontinue their weekly offerings until we can advise some prospects of further purchases. The export outlet is open to them individually without necessity for permits.
 Farmers. millers and dealers (outside of the grain corporation) own and are carrying 437, 900, 600 bushels of wheat, against 2s000,o00 year ago Seriously Nponder on this statement. After June l next the grain corporation authority to buy wheat at the guaranteed price ex- pires, and thereafter the security of that basis is withdrawn. The fact that the present prices largely rule over the gov errment guarantee should not obstruct a study of conditions which may develop and at time when that price assurance no longer exists Americas complex and served and prepared to junction when this agency retires.
 Price fluctuation always is followed by distress and loss. Wisdom dictates the reduction of commitments to the mini mum required for the conduct of neces- ysary current business. We should not feel that the full responsibility of tNis office had been discharged without call- ing attention to the price hazard which may exist for many months. knowing that a large part of the producing and distrip- uting trades have been accustomed by two years of official stabi1ization- and as surance perhaps not to fully realize the danger of overextended commitments un- der the present extraordinary world sit- uation."