Omaha daily bee., 1922-03-05

of Grain
Discussed
Farmers Attending Debate at
Lexington Refuse to Ex.
press Definite Opinion
on Issue.
Over 1000 Hear Talks
BY PAUL GREER.

Lexington. Neb,. March 4.-(Spe-
cial Telegram.)-lt was with an
open mind that hundreds of grain
growers eongrega,ed here 10 hear
the good and evil of grain spccula-
ton discussed. During the day little
groups OF farmers, milling around
the streets. discussed the issue. but
few would express a definite opin-
ion. Grain dealers, who came here
Tor the debate, appeared more in
tercstcd than the farmers.
During the afternoon George {.
Jewett. general manager OF the
Northwest Wheat Growers OF Port
land. Ore. visited some Of the pros
porous farms OF Dawson county. His
opponent. ]. Ralph Piekell. editor
OF a Chicago grain exchange paper.
rested at the hotel. What ono farm
er designated as "thc night of the
big wind" began in the Methodist
church at 8 before an audience of
more than 1000.
Mr.. Jewett opened with an areu-
mcnt against hedging in grain OF
any form. Mr.. Pickell retortcd that
the statement that the exporting
company, which bought most OF the
grain from the Pacific coast farmer
organization. hedged every pound,
and would not dare buy il unless il
was able to insure its purchase in
the future market.
Played Jazz Records.
The cooperative manager read the
main portions OF his argument, while
the attack of his opponent was de-
livered with fiery flueney. Mr..
Pickell, before entering the ring.
confided in the newspaper men that
he had practiced his speech in front
OF phonograph grinding out the
jazziest records he could find. He
also told OF having climbed to the,
top of his barn on an Illinois farm
and delivering his address while
straddling the roof, thus practicing
to face the most disadvantageous
situation that could come up.
Good humor, however, filled the
audience. In an interim, one farm
er told those about him a story of
his boyhood to illustrate his cx-
pressed opinion that there might be
exaggeration both OF the evil9 al.
benefits of the present methods OF
handling grain.
Took Sacks Home.
Back in Missouri" he said, my
father boosted me up on an old
mules back and slung two sacks of
wheat over it to be taken to the grist
mill to be ground into flour. I got
there all right and stood by as the
miller emptied the sacks into the
hopper. l watched the grain disap-
pear from sight in alarm, for It was
the first time I had seen it.. Then,
when the miller turned his back, /
grabbed the empty sacks and raced
home to tell my father that the mil
Ter had stolen all the wheat, but
still had the sacks"
The farmers have not made UP
their minds about the correct way to
look at future trading. During the
afternoon, Mr.. Jewett, together with
mixed party of grain men and CO.
operative managers, visited the farm
of L. R. White, one of the show
places about Lexington. Mr.. White
hesitated to express an opinion on
the subject which has kept this
vicinity in fever of expectancy, but
finally remarked that most of the
worlds business was run on a specn-
lative basis,
Farmer a Speculator.
Mr.. White pointed to his sheep. "If
| had not speculated in these ewes"
he said, 81 would not have had a
profit on them. You might say that
all | have owe to speculation.
whether in land. in cattle or in any
other crop"
The argument OF Mr.. Pickell, for
the grain handling interests. did not
follow these lines. "You will agree
he began, that if corn, wheat and
oats, three commodities of specula-
ton on organized exchanges, had
suddenly ceased to command an open
market in the summer OF 1920. when
prices began to fall, there would have
been a great catastrophe. This ac-
tually happened in the case of wool.
hides, leather, tobacco and other
things that are not speculated in.
There was time when absolutely
no one would buy wool and the sheep
men had it left on their hands with
out a market. The price of wool
declined 81 per cent, from January
to December of 1920, while wheat
went off Sc per cent
Compares U. S. Control.
Mr.. Pickell pointed out that there
were wider fluctuations when wheat
was under government control than
under unrestricted trading. When
speculative markets turn up, he as
serted, all business is sure to get
better. This had started now, and
he forecasted increased business ac-
tlvity in from two to six months and
that money always became very
cheap for borrowers in from two to
eight months after business gets bet
ter.
Rejoining that speculation in grain
was a menace to the farmer. Mr..
Jewett declared that although the
wheat market was up now, with
most of the grain out of the farm
ers hands, it would be much lower
m September when the new harvest
would be ready for market.
Only one strong argument had
been advanced for speculation-thas
It provides method by which legiti-
mate dealers may insure their pur-
chases or salcs," declared Mr.. Jew
ett, "and in our two years OF operat-
ing cooperative marketing associa-
tons on the Pacific coast we have
proved to the satisfaction of many
dealers and exporters that this