Arizona republican., 1920-01-12
SOUNDS WARNING. AGAINST FALL IN PRICE IF WHEAT
Withdrawal Of Government Control June l Likely To Effect Serious s.ipset In Industry, Barnes Tells Dealers = Reserve Larger Than In 1919
Republican A. p. Leased wirel

NEW YORK, Jan. 11.-Warning of prize hazards which may confront wheat and flour handlers after tso withdrawal of government control when the activitis of the grain cor poration are brought to an end in June was contained in a circular sent today by Julius H. Barnes. wheat director, 10 the holders of the 42,000 licenses he has issued.
 Emphasis is placed by Mr. Barnes on the statement that 'the reduction of commitments to the minimum required for the conduct of necessary current business" will be a wise commercial policy for the grain trade upon the ter imitation of two years of official stabi- lization and in view of the present world situation.
 Public Shows Thrifty Desire
 That there is even now an element of the population which has demon strated a desire to practice thrift Is evident from reception given to the grain corporations pure wheat flour which the government recently made available to the consumer at reduced prices the wheat director states. He also predicts that thrift as national characteristic may become contagious as extravaganza has been.v At the same time he attributes recent price advances in certain grades of flour to restricted transportation and extra ordinary indifference to expenditures by a section of our people"
 Our total wheat crop exceeded that of 191S,' said Mir. Barnes. Much is said of the relative scarcity of strong wheats The curious fact develops. however. that by continued replace ments from the southwest and the Pa cific coast, and because eastern mills will probably draw their smaller needs of strong wheats from Canada and the Argentines. the northwestern mills can grind fully equal to last years large production and still leave. at the end of this crop year, al arger carry-over in the northwest than last year
 Exports Decrease
 Exports for the past six months are B ,000,O0 bushels less than last year. Difficult finances abroad, forcing ut most curtailment of purchasesss will continue. Present purchases, still to be shipped, largely supply foreign re- quirements for Q considerable period. Cheaper rye will replace some wheat The United States can apparently ex- port 50.000.000 bushels of rye, against 25 ,00e, ,000 bushels last year.
 With no immediate prospect of fur ther purchases of flour by the grain 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 (out- side 4 the grain corporation), own and are carrying 437 100000 bushels of wheat against 299 900, 900 a year ago. Seriously ponder on this statement. After June 1 next, the grain corpora tion's authority to buy wheat at the guaranteed price expires, and there after the security of that basis is with drawn. The fact that present prices largely rule over the government guar antee should not, obstruct a study of conditions which may develop and at a time when that price assurance no lon ger exists