Evening star., 1923-07-25
BREAK IN WHEAT
/ LAID T0FARMERS
Sell at Wrong Time, Grain
Men Say-Must Have Cash
Now, Is Their Reply.
BY j. G. ROYLE.


Special Dispatch TO The Star.
I NEW YORK, July 25.-The farmer
is paying too high for his right to
sell where. when and how he chooses.
That is the explanation given to-
day by keen -visioned grain men in
discussing the position of the farmer.
which is affecting every line of busi-
ness in the United States and every
citizen today Untimely marketing.
they assert. is responsible for the
predicament in which the farmer
finds himself.
In support of this view they IN
stance the fact that today farmers
are selling wheat around 81, which,
they assert. is below the cost of pro-
duction. but are refusing firmly to
sell corn, which is at new high
level for the season, is IS II per cent
higher than last year and Is rela-
than ever before. individual farm
ers, they add, seldom take full ad-
vantage Of marketing opportunities,
holding their products stubbornly
when prices are high. but selling
when they decline. cooperative mar
keting offers one measure of relief,
dealers declare.
Present Selling Methods.
q, Last year when wheat prices were
relatively high, according to Nesbit
GramDler of Buffalo. the farmers held
their wheat and over 35,000.00O BUSH
els remained in their hands July /.
They sold freely corn, which was low,
and much of what they retained was
led to hogs. in which form it brought
relatively low returns this season
Moreover, government satisfies show
that this spring they increased wheat
n ROC
Eight per cent more Sows were
farrowed this spring than in 1922.
and farmers indicate their intention
of breeding over 2S per cent more
cooperative marketing prevailed.
grain men say, these mistakes need
not have been made.
The farmers are selling wheat at
low prices because they have it to
SELL" Milton L. Schenburg of the
Rang & Co. said today. land they
are not selling corn at the relatively
high prices because they have none
TO sell. / believe there is rs per
than a year ago" Government re-
ports showed that on March l there
were l53,000,000 bushels of corn on
farms.
"Grain Trade Scared
Talked to DEATH" is the way
Frank kell. railroad builder, banker
and wheat operator of Kansas City
sums up reasons for this tendency
and for the low price of wheat. which
he characterizes as disaster"
While there is an overproductlon
of wheat" he said today, lit is not
so serious as to justify this present
disaster. Everybody who has said
anything about the wheat market has
hurt it. They have the grain trade
scared to death.
Even men who were trying to help
the market in their propaganda hurt
Reports Partly Blamed.
Mr.. kcll added that "monkeying'
with the option market which re-
Stricted the amount of trading made
This possible. 4 somewhat similar
stand was taken by the head of one
of the leading Chicago elevator in
'ereStS. off hand, | would say that
the farmers had been SO Hooded with
reports of excessive supplies of wheat
that they are saturated with the idea,
and are therefore anxious to dispose
of their wheat as quickly as they
can" this man said. I'm corn, farm
ers similarly have been impressed
with continued advices of acute
shortage, and their ideas of values
are set very high. l am not in a po-
sition to say how much corn there is
still back"
Sell to Get Money.
st. Louis grainmen said farmers
were selling wheat while it was low
because they need the money. Wheat
around 100000 bushels a day, or dou-
bic those of this time last year High
offers are bringing out little corn.
from which it is concluded that there
is little old corn left beyond feeding
requirements.
Nat Moffit former nrecidapt of .Io
st. Louis Merchants Exchange, de-
elareS the explanation of the situation
iies III the short acreage of corn and
the excess production of wheat
The corn acreage before the war"
he said, was l07 7.000,0 900 acres; now
~ is lo3,0OO.000. Wheat requirements
IN inns country are 100000 900 bush
els the present production is S00,-
ooo.ooo bushels. The solution is more
corn and less wheat"
Less Selling I'm Kansas.
Financing of Kansas farmers to
enable them to hold their wheat is
progressing and offerings at Kansas
lily are showing a slump. North
western farmers are selling wheat
extensively because they must have
funds to finance their harvest Har-
vest hands and supplies of food. oil
and gasoline, together with repairs
must be paid for rs the work is done
and the farmers credit has been
needs.
President E. G. Quanne of the St
Paul Federal Land and intermediate
Credits Banks summed up the situa-
tion in his territory as follows:
1.-THE corn crop of the northwest
is negligible compared with the
wheat crop. The farmer does not
sell his corn because he expects to
make more money by selling the ami
mails to which he feeds it, Wheat
eannot be produced for less than 90
cents bushel and to make a profit
that is sustaining the farmer must
sell it at $1.50.
Calls Costs Biggest Factor,
Ability of the farmer to borrow
through chattel mortgage to his local
bank is move in the right direc-
ton. but alone it will not solve the
problem. cooperative marketin will
help some. but that alone win not
serve. Short term loans on elevator
and warehouse receipts by the m
termediate credits banks through
marketing associations will helm
greatly. But the solution demands
4 reduction in farm production costs.
labor. supplies and materials, and of
living essentials which must be pur
chased by the farmer" Mr.. Quanne
did not suggest how this was to be
brought about.