The Washington herald., 1921-01-18
Julius II. Barnes Testifies
OnValue of Grain Exchange
He Tells House Farm Committee Proposed
Market Restriction Based on
Mistaken Policy.
MRS. GEORGE M. OYSTER, JR.

resultant proht on the purchases
which were secured from the ac-
tual grower during the, manipulated
depression.
'D4Sprored by study.
Il think a study Of the relative
price level in wheat and OF the sc-
tUal marketing returns Of the wheat
grower disprove the first. and
think a study of the crop move
ment and of price currents over a
series Of years will show that the
second has not been done. and is
not possible. II you can establish
the data in respect to these two
charges against the misuse of cx-
change facilities, We may obtain a
trucr perspective Of the actual de-
fects in the system. and frame pos
sible remedies with more chance
of success.
Seventy five per cent Of the
farmers yearly marketing of wheat
has been sold in the first half Of
the. Crop-year. in such manner as
to average the grower almost eN-
actly the same price as was Sc
cured for the first half Of the last
crop year, at which time there had
been no substantial defRIion in the
general commodity price level.
Betters Guarantee.
More than that, this remarkable
situation is disclosed. that, with IS
per cent Of his wheat marketinEs
from this crop complete, the farm
returns to the grower may be cal
culated to have actually exceeded
by S46.O0O,OOO, the returns which
have been received under the av-
erage farm price rejecting the
guarantee basis.
''On the IS per cent Of wheat
marketings still to leave the farm.
assuming that this remnant Of the
crop must be marketed at the pres
ent farm value. there will be a ma
terial fall below that general price
level.
But l presume it will be sur
pTising even to yourselves to realize
that a careful analysis in this man
ner jUstifies the belief that, treat
ing the wheat movement as a whole,
three-quarters of it has left the
farm at such a high average price
an average price equalIing 267 per
cent of the prewar 1918 average
price.
Farmers Avoid Loss.
'As a matter of fact, the loss
by reason OF that price decline has
fallen most heavily on milIers. mer-
chants and dealers who absorbed
| the farm movement during those
earlier high-priced months, and to
the extent of total losses of al
most 500. 600. 900.
The point is that there has been
a widespread. and I believe erro-
| neous. impression that the shrink
age in value of this years crop
has fallen solely on the farmer
| Please note I refer thus only 10
the wheat crop, because in respect
to the other grain crops the pro-
ducer is undoubtedly N a less IA
vorable position.
Wants TO Help Farmers.
4 want to make it clear that dc
not minimize the necessity of eN.
tending the agricultural industry
! every possible aid and support al
this time but want to make tha,
aid effective, base6 first on ascer-
| tanning the exact facts
If action intended to aid agri.
riCultUre should be based on false
/ premises, its harm would be two.
/ fold; First, It would be, ineffective
I in its remedy; and second. II would
| create the impression that effective
action was under way. and thus re-
lax efforts which might produce re-
suits in other directions.
Myth Built Up.
There has been built up the myth
! of a class Of actual traders, un-
scrupulous and possessed Of powers
I of foresight, that by superior in
formation, can calculate the cur
rents of supply and demand with
their resultant price movement and,
knowing in advance the source
CONTINUED ON PAGE SEVEN.