The Washington herald., 1920-02-18
CONTINUED FROM PAGE ONE.

and the re-purchaser. The guaran-
teed price has been the minimnm
price. not a maximum price, and Is
evidence thereof the farmers of the
United States have received for
their wheat prices ranging from
the guaranteed price to $500 per
bushel.
The wheat director has protected
the farmers of the country in mar
keting the crop of 1919 throughout
the entire year. II the wheat direc-
tor had not entered into these trade
agreements with the various indus
tries, would have been necessary
for the Government to become the
direct purchaser of the farm crops
Trade conditions of the world
have been such that 1t would have
cen practically impossible for the
individual miller or grain dealer to
have exported any large amount of
wheat or -four. Ocean freight rates
have been established by the Ship
ping Board that in the opinion of
many have been excessive. Foreign
purchasing agents have been COM
PEELED to pay from a 10 to so per
cent increase over the purchase
price in this country, due to the
depreciation of foreign exchange.
Would Harm Farmers.
TO repeal or modify the pres
ent acts under which the United
States Grain Corporation are repre-
sentatives in carrying out the pro-
visions would be ill-advised from
an economic point of view. and If
repealed. and the powers of the
wheat director limited or restricted,
the effect. we believe, will be far
reaching, particularly to the farm
ers who have not yet disposed of
their wheat.
I'VE believe that your committee
would be taking a desperate chance
OF creating great distress, and why
this question should be considered
at this late date, with only four
months in which the Grain Corpor-
alton can function. is beyond the
comprehension of those who are in
touch with the situation.
Chaos Would Result.
I'VE as millers have sold to flour
merchants and bakers the products
of wheat. they buying under a sep
arate contract with the United States
Grain Corporation. and millers have
on their books contracts for future
delivery of flour for a large per-
centage of the wheat now held.
Should the contemplated bill be-
come a law, IL would create such
a disturbance in trade channels that
chaos would almost inevitably re-
suit.
Producers of wheat have not been
Withholding their product, nor have
the manufacturers of flour. Any
curtailment of marketing has prob
ably been on account of inability
Of the Railroad Administration to
give adequate service. Your COM
mittee should consider the financial
result of doing away with the in
strumentality that has been intrust-
ed with the purchasing and mar
keting of the wheat crop of 1919.
Banks Made Loans.
MANY country banks have made
loans on wheat now in elevators.
To pass this bill or seriously con-
slider it further would place these
bank loans in a questionable class
and would undoubtedly add to the
already overstrained credit condi-
ton. The country dealer and the
banker have regarded the contract
of the United States Grain Corpora
tion with the grain men as a gov
ernment pledge.
1T has been suggested that the
work of carrying out this guaran-
tee should be transferred to anoth-
er already established government
agency. IL the confusion that must
result from such a drastic step at
this late date is given consideration,
we believe no one would care to as
sumo the responsibility.
1T is our firm belief that the
wheat director and the United States
Grain Corporation, acting as an