The daily star-mirror. (Moscow, Idaho) 1911-1939, 1920-08-19

months, is about to bear frult. Mr.
French has been very busy since HI
made the suggestion in an article
article published first in his "home
paper, at Moscow and has been work
ing the wires" and the mails to Sc
cure action. He has taken the matter
up with the federal reserve bank
heads at Washington, D. c., San
Francisco and Spokane, and has had
replies from each. He has left nc
"stone unturned" to bring the mater
before the proper authorities and get
favorable action in time to handle
this years's crop of wheat.
At Wednesdays luncheon of the
chamber of commerce this was the
chief topic discussed. Strong resolu-
tions were presented by the commit
tee appointed by President Oversmith
at the last previous meeting, and
they had been read by c. j. Munson,
secretary of the chamber, and before
putting the matter to vote, Mr..
French spoke at some length on the
mater and read letters and kilograms
he had received in answer to his let
ters and kilograms on the subject
Congressman French summed up the
wheat situation and his plan for stab
ilizing the markets as follows:
Before the war, the annual wheat
crop of the world was in excess of
3,500,000 bushels on an average for
period of several years. Omitting
Russia, Poland and Roumania, which
are so war-torn that satisfactory fig
ures cannot be obtained now, the an
nual wheat crop for the rest of the
world for a number of years was
/ 49,007, 900 bushels. The annual
crop of the United States, between
100000, ,OOOand 800,000,000 bushels, or
ACKNOWLEDGEMENTS of the total
produced in the area we need to con-
slider now.
Last year, or 1919, the world out
put of wheat exclusive of Russia, Po-
land and Roumania, was 1,673,99,OOO
bushels and of this amount, the Uni
ted States produced nearly 100000
900 bushels.
What is the reason for the low
price of wheat in comparison with
year ago?
One of the important reasons IN my
Judgment is because the Federal Re
serve Board has not adopted the pol
icy of permitting the banks thruout
the United States to rediscount paper
bearing upon wheat when the wheat
shall continue in the same ownership. I
It is the present policy of the Federal
Reserve Board, as l understand it, TO
.efuse to rediscount wheat paper so
ong as the wheat shall reman IN the
anne ownership.
That being the case, purchasers of
wheat know that they can obtain the
wheat of the United States at a far
over price than it is worth economic
lly because the farmer is compelled
o sell.
Unless something shall be done to
hange the situation those organlza-
ions of such financial strength as
will be able to carry themselves for
tx months or year will purchase
Jheat at the present price and hold
! for such advances as may come
uring the year.
Consider what happened: Last
ear. it is estimated that in the three !
orthwestern states, rs per cent of :
he wheat of 1919 was sold by Octo-
er 10th and the price averaged 1920 :
18th Portland, Oregon, base, less the +
Ou ctSCOoilC VI iANAStAe |
hat same wheat was largely sold
,ithin six months for prices as high
S $3.50.
Mr.. A. A. Elmore, President OF the
'armers Union of Washington ana ,
laho, has told me that he estimates
ne loss to the three northwestern |
,ates on account of this condition as :,
rom ten to twelve million dollars. 7
his loss was suffered by the TAR r
lers who sold wheat at the low +
rice and it was suffered by the busl- '
ass communities in all wheat-grow- y
lg sections. lv
In part, last year, the farmers sold +
ore wheat than probably they need f
to sell because they felt it was the +
atriotic thing to do. 1t did not help n
le situation, however, to dump !
lree fourths of the wheat on to the 6
arket by October 10th. 1t the T
heat had been held and disposed of q
,adually, the world would have been .
; we'll fed and the farmers would =
I'VE received the ten or twelve mil =
IN dollars that went to the big grain q
lyers in profits. +,
What | am trying to do is to help T
,oid the mistake this year. In my =
dgment, this condition may be n
voided in one way: s.
Let the Federal Reserve Board ad- q
It the policy to permit banks to re- n
scount wheat paper at the end of a
-day periods thruout the year. III
l do not know that wheat will be as r, r.
gh, or that it will be higher than 4
St year. This will depend on wheth- Il
or not Russia-for instance--can is
mp large quantity of wheat into Il
e world market that we do not now It
pect. 1t will also depend on wheth- n,
or not the estimates of the NAgri- te
ltural Department and other agen- cs
IS are over or under wheat they R
ould be. b;
Someone objects to the plan / have he
ggested and says that the plan er
,uld force wheat on to the market ell
four definite periods thruout the in
ar. Those who make the criticism w
not understand the plan, in my ar
inion. What is not harvested and =
i - L.,4 4of