The Washington herald., 1921-01-18

Appearing before the Agricultural
Committee of the House yesterday.
Julius H Barnes, former director of
the UnitaH States Grain Corporation.
urged the extensionj OF grain eS-
changes, especially Of hedging IA
cilities, rather than restriction, as
provided in the bill being consid-
cred by the committee.
Barnes denied that price depres-
sion OF wheat and other farm prod
ucts last fall WAS caused by or
ganized attacks in which the faCili-
ties of the exchanges were utilize
or that the exchanges constitute the
machinery by which INSCRIPTIONS
dealers may depress the price level
at the time of crop marketing az
later advance it with resultant
profit on the purchases which were
secured from the actual grower dur
ing the manipulated depression.
Suggestions Given.
Two suggestions were made by
Barnes to improve the conditions Of
the producers. The first suggestion
was the creation of a national mar
keting commission. composed of
able men, to study the national
marketing situation in all its as
poets and to make recommendation
to Congress for appropriate action
The second suggestion was to
provide storage facilities available
for every individual farmer and
evidenced by negotiable grain GER
tificates, transferable to terminal
certificates. providing him the high
est form of negotiable paper as a
broad basis of credit with his local
merchants, or banks, or any bank
or dealer anywhere.
AbsOIves British.
In reply to several questions of
committee members Barnes fatty
denied that tne British, buying
grain. as a government, for their
people or for the French and Ital-
ians, had deliberately mulcted the
American traders. He said that
they might have come here. sold
short. and then. taking advantage
of a depressed market, have bought
at the lowered price. But, as a
fact, he said, they did not do this
at any time-and would not.
What they did do, he said, was
during the stress of war, with
transportation menaced by subma-
rines. They came. here to the most
available and, in transportation.
safest market. They had to buy
for a future period to assure the
food supply for their people.
Based upon what was supposed
to be the American export surplus.
they contracted for certain quanti-
ties. When it came to delivery Il
was found this surplus had been
overestimated. They settled for
this shortage in cash and used this
cash to buy at the same price else
where.
Gives Crop Analysis.
In amplifying his contention that
the depression ia grain prices last
fall was not due to manipulation
by the exchanges, Barnes offered in
table form an exhaustive analysis
of the crop movements.
Il cannot help but feel" he said.
that there has not been enough
/ effort to ascertain the exact facts
/ regarding phases which have forced
| themselves Unduly on the public at
| tention by their very spectacular
/ character. The Justification most
! commonly presented for the present
! proposed legislative regulation OF
| exchange trading, I think, can be
/ summarized thus:
( Reasons for Proposal.
First. That the exchange IA
! cilities this fail, provided the means
| by which organized attack on grain
values reduced the price level on
which the grower must thereafter
! sell his crop.
"Second-That the exchanges,
with their national price level, con-
| stitute the machinery by which un-
scrupulous dealers may depress the
price level at the time of cIsD mar
ketinG. and later advance it with