The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1923-07-30
Government Purchase Of
Stocks Would Be UnayaiI-
ing, if Not Unfair
WRITED0WN LAND VAL UES
Long Period Of Adjustment
Necessary, Declares Pro-
feSSor,
BY DIR. LEWIS HANEY,
Director Bureau Business Research
New York University.

New York University.
NEW YORK, July 3O-After brief
upturn last week, the depressed wheat
market has again sagged well below
81 a bushel. On all hands we hear
proposals for relieving the wheat
farmer. What are we going to do
about it? How serious is the stu
alton?
Increased consumption would help
But women do relatively little bank,
ing in the home these days, ana will
not buy a barrel Of -four.
The wheat farmers are in bad shape
and they are numerous enough to
affect the whole Nation. When they
can't buy trade is reduced.
Probably the low price of wheat is
now the worst feature in the domes-
tic industrial situation-though falling
general prices and rising wages also
make bad combination. Cheap hour
and bread are good things down to a
certain point. but when they get so
low as to cause serious loss TO the
farmer 1t means that the rest OF us
will have TO make up a part Of the
loss directly or indirectly. and our
bread is not so cheap as 1t seems.
The remedies proposed are: 1. Con
Stunning more -four. 2. more
gradual marketing OF wheat 3. The
purchase and holding Of wheat by
tho Government or by the public in
sufficient quantities TO maintain the
price. 4. Feeding wheat to hogs and
cattle. 5. Helping settld European
affairs to induce larger exports.
/ do not see much hope in any OF
them.
The more gradual marketing OF
wheat would merely mean that we
would have a larger quantity along
toward the end of the season when
other exporting countries are flood
ing the market.
Government purchase would mean
taking all the people for the benefit
OF the wheat growers. with great
financial loss certain in the end and
q very bad precedent established. l,
for one. would not want to hold stock
in Government which would IN.
vest" in 100000. 900 bushels Of wheat
now. When would any one who buys
wheat now be able to sell IT at an
advance?
Recent reports from Canada confirm
the probability of an enormous wheat
yield there. This is the first great
reason why wheat must be cheap.
Our farmers produce surplus OF
more than 200, 100000 bushels for ex-
port. When they have to compete
with other large SURPRISES and for
eign buyers, the price tumbles TO
a point where the last crop Of produc-
ing and carrying sets the pace.
F The only reason people did not
lose as a result of the buy a bale
of cotton" movement in 1914 was
that the supply OF cotton was not
excessive at the time No amount of
holding under present conditions can
make wheat worth more.
AS to the feeding wheat to hogs
il is to be remembered that hogs, too,
are abundant and cheap. Already 1t
seems that corn must come down,
since no money can be made at pres
ent prices by turning 1t into cheap
pork.
Europe does not need enough of
our wheat any more to help us
much. A settlement Of the Ruhr
would help the general industrial sit
uation with increased buying power,
but this would benefit our producers
of copper, cotton and petroleum more
than our wheat growers.
There is only one real remedy.
Raise less wheat. Diversity our farm
ing Write down the value Of wheat
lands. This means loss and long
period of readjustment, but 1t is the
price that must be paid for the war
boom in wheat.