Arizona republican., 1920-11-06
.GhAEH! TRADING AIDS MARKETING
 BARNES CLAIMS
Advises Farmers Against Organization of Ow II Marketing System - Says Such a Plan Would Be a Monopoly and Stifle Com petition
rRepubIIcan A. p. Leased WIrel

CHICAGO, Nov. 5.-Julius H. Barnes, former director general of the United States grain corporation, today appeared before the marketing com mittee of r of the farm bureau fedora tion offering opinion and suggestions on the subject of grain marketing and outlinging major influences on price fluctuations on trading exchanges. i Tn his statement Mir Barnes said | that it was his firm conviction that the present system of grain marketing through open exchanges, by maintain ] ing a highly competitive market at all times, worked to the advantage of both producer and consumer and that future | trading was beneficial in that it fur nished insurance for traders against destructive losses on commitments which would of necessity be taken in wider margins of profit without ex- change hedging.
 He urged the development of bet l ter understanding of 'the great ex- changes and cooperation with them in developing their full service and eliminating their defects and abuses, :" and commended the committee for it's temper to Hay. aside prejudice and previous conceptions to learn the truth about basic facts on which sound mar keting must proceed"
 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. MT. Barnes said that the wheat producer has 'escaped the full effect of deflation'' because of the "cushionp found in future trading. He cited figures tending to show that the decline in wheat from the peak post war price to the current level has been only IS per cent as against a decline of 6S per cent in potatoes, for which there Is no exchange market. Similar comparisons reveal declines of 55 per cent in cotton, 47 per cent in beans and
 46 per cent in barley, the statement
 said. Indications that the deflation .is
 worldwide in character and not con-
 fined to American farm products alone
 MT. Barnes said. was found in the faci
 that imported farm commodities. sucl
 as sugar and coffee fell off from 6l
 to 66 per cent during the same period
 Tn answer to question as tt
 whether it would be feasible for pro
 ducers to market their own crops, Mir
 Barnes said the present system main ktained a lower trade toll between pro
 ducer and consumer than would b'
 possible in any system which elimi mated hedging and that in his opinioi
 any organization of farmers for prlc'
  ]. the American public.
 HI Particular emphasis was given tn H statement that cooperative efforts o producers in local territories to elimi
 nate unfair practices where monop
 olies existed were not to be confuse
 with a nation n-wide marketing system which would itself constitute monop oly. The former, Mir. Barnes declared h is to be encouraged, is sound in eco r homie principle and will succeed. whil
 the latter is not sound in that it seek = to establish market influences othe 2 than the fundamental law of suppl ], and demand
 Y First among constructive sugges :, tions submitted by Mir. Barnes wa q that "exact and accurate informatio n on all phases that affect markeun
 and price, both national and world a wide verified and endorsed by an ol - ganization in whose judgment the pro l. ducer has confidence" be given farm n CTS to aid them in determining value l. Efforts to improve transportation fs a eflities and increased domestic COT d sumption were also mentioned {; 5 means by which market condition In might be made more favorable for Il Id producer.
 The Reorganization Of European le tnance is to some degree responsib 30 for the present light export demar J. and this. in turn, is due to the ''in r. possible atmosphere created for pr re vate business by the world polite nt situation" MT Barnes declared. 70 Reports that MT. Barnes is to he; ly a O.00O, 900 corporation for exportn
 grain were flatly denied before t E. committee.