The daily star-mirror. (Moscow, Idaho) 1911-1939, 1920-08-06
BURTON |. FRENCH
BOOSTS FOR WHEAT.
IDAHO CONGRESSMAN HAS A
GOOD PLAN TO STABALIZE
WHEAT MARK EFT

Deen giving aCtenClOn TO Cne pTOD-
lem of working out some way by
which the wheat farmers of the
United States may receive fair COM
pensation for their wheat and has
taken up the matter with the board OF
governors of federal reserve banks,
Washington, D. c., also with the di-
in Spokane and San Francisco, look
ing to relief.
Congressman French believes that
the problem can be met by the federal
reserve banks granting authority to
the local banks thruout the United
States to re-discount wheat paper at
the end of ninety days, six and nine
months, to the extent that wheat OF
1920 shall not have been consumed.
In speaking upon this subject, Con-
gresham French said
1t is utterly astounding that the
price of wheat should be less in 1920
than in 1919. The price that is Of
fered today for wheat in Moscow
but a few cents over two dollars
does not, in my judgment, represent
the reasonable economic value Of
wheat, and | think this will be ap-
parent from the facts that | have as
sembled.
Before the war, the annual wheat
crop of the world was 1,649, ,007 900
bushels, on an average for a period
of several years. The annual crop
of the United States was between
seven hundred and eight hundred mil
lion bushels, or approximately one
half of the total produced
"Last year, or 1919, the world out
put of wheat was 1878, 1899 900 BUSH
els and of this amount, the United
States produced nearly 1000, 900
bushels.
"This year, the crop estimate is
less than 1,500,000,000 bushels and
the estimate for the United States is
from seven hundred to seven hun
dred fifty million bushels.
"In France, there is little better
than one-half a crop. In New Zea-
land, the crop harvested a few
months ago was scarcely more than
one-half. In Australia, there was a
drouth and the crop harvested a few
months ago was short, and of the
amount produced, all the Surplus
some 100000 bushels was con-
tracted for at once by England. India
this year has short crop and in Can
ada, the yield is nearly one-JhIru less
than normal. Germany has COM
mandeered the entire wheat yield and
the wretched conditions in Poland,
Roumania and Russia and other
wheat-producing European countries
will make it impossible for those
countries to produce enough wheat
f their own consumption during the
coming year.
''Under the circumstances, il seems
hi haf bo Of ,xlla
Now should be less than the price of
wheat one year ago.
"It must also be remembered that
carried over from last year. One
18,000,000 bushels in the
United States from the crop of 1918.
This year there is carried over ap-
106,000,000 bushels; so
it will be seen that the world will
need to draw upon the new crop for
it's flour and bread within period of
sixty days.
"An analysis of the foregoing fig
lres shows that the world is short
approximately 150,000,000 or 200,-
100000 bushels of wheat in compari-
son with 1919. Under the circum-
stances, it would seem that economic
conditions would require higher
price for wheat this year than was
paid last. The fact is a less price is
and the other day l noticed
a fluctuation of something like IL
cents within a period of "a hours on
the Chicago market.
"What is the reason for the low
price of wheat in comparison with
year ago?
Zone of the important reasons in
my judgment is because the federal
'eserve bank has not adopted the pol
cy of permitting the banks thruout
he United States to re-discount pa
per bearing upon wheat when the
wheat shall continue in the same
"All who are familiar with bust
less in a wheat-growing section
NOW that the wheat farmer relies
lpon his wheat for his income. The
hortage of labor in 1920 has been 13
,er cent lower than in 1919. The re-
ult has been that the farmer has
een compelled to pay high wages for
ii kinds of farm help and the help
as worked short hours. The further
esult is that caring for and harvest
ng the 1920 crop has been most ex-
ensive for the wheat farmer of the
ountry. 1t has been necessary that
armer raising wheat shall pay for
is help and shall pay high prices for
is machinery. The farmer cannot
ostpone the debts incurred for six
lonths or nine months. He must pay
ow. That being the case, he must
ell his wheat now, unless he can bor-
ow money on it and have the as
trance at the end of ninety days and
x months he may renew in part, at
'ast, the obligation that he has as
lmed
"It is the present policy of the fed
,al reserve banks, as I understand S
, to refuse to re-discount wheat pa
sr as long as the wheat shall re-
ain in the same ownership.
sThat being the case, purchasers
wheat know that they can obtain
10 wheat of the United States at a
r lower price than it is worth eco
Continued ON page four.)