The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-08-14
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}. T.. GRAY SEES NEED
Of FIXED WHEAT PRICE

Viola, Idaho, August 10, 1875
Editor, Star-Mirror,-
There is a great deal being said
about fixing a price on wheat. Ihe
government has frequently 1lxed
wages for labor, and has fixed freight
rates so that the railroads can earn
5% per zen dividends on the money
invested, including watered stock. so
we can see no reason why a price can
not be set on wheat that will insure
the farmer a reasonable profit above
the cost of production. 1t has been
frequently stated through the papers
that it costs from $1.20 to $l.56 per
bfshel to raise wheat in the PalOuse
country. And back east it costs from
S1.2O to S1.60. 1t costs $1.36 in Kan
sas. So we see from these figures
that the average cost is about $l.3S
per bushel. Now if the farmer gets
S1.5O at Viola it will give him II
cents per bushel profit, or dividends.
Let us suppose the farmer averages
$500 bushels a year from 160 acres.
This would be about 81 bushels per
acre from 80 acres each year. This
supposes 80 acres summerfalloWed
each year. Twelve cents per bushel
profit on $500 makes $500 profit from
100 acres or from about $4,000 in
vested. This amounts to 1B per cent
on the investment. How does that
compare with the 5% per CEN handed
out to the railroads?
The Gooding bill proposes to fix
the price at $1.75 at the coast. This
would give us $3.50 or a little better
at Viola. So we can see that $l.75
at the coast is not going to make
the wheat grower rich if he hires
the work done. Before the war h
wheat grower was getting along rea-
sonably we'll we thought. The price
of wheat now is about the same as
before the war. But the things the
farmer must buy r from SO to lou
per CEN higher than before the war,
according to Congressman French's
statement. This would be an average
of rs per cent higher.
Wheat is now worth about $1.OO at
the coast. So in order to balance the
farmer up with the things he must
buy we must add rs cents to $1.0O.
In other words wheat should sell at
S1.75 at the coast if we would give
him the same prosperity he had be-
fore the val
In the Star-Mirror of last Febru-
ary IA, we tried to show that the
farmers lost ST, soc, 000, 600 by reason
of the price of wheat being fixed at
1920 in Chicago. This would be $l.00
per busheI on SOC, 100000 bushels d
year for two years. The farmer has
also lost the use of this 81 500, 000, 900
for four years since the war. Count
the interest Simple INTEREST," at Z
per cent and we have S448, 600, 900.
The Gooding bill fixes the price at
$1.75 for three years. Wheat is
$1.00 at the coast. So if the
farmers were to sell 500, 900, 900 bushels
of wheat the government would have
to pay them 800, 900, 900 times rs cents,
would amount to $500, 900, 900 a
year. Now if we multiply this by
three we have what the government
will pay the farmers in three years
or $1,000, 600, 900. And this is just
the amount that has been given to the
railroads directly out of the treasury
since the war according to a state
ment from the treasurer of the United
States which appeared in the papers
last winter. This was to rehabilitate
the railroads.
The government caused the farmers
lose 1000, 000, 900 plus $448, 900, 900
interest, or a total of $2,048, 900 900.
This does not consider the interest
On the unpaid balance for three years.
So we see that to fix the price at rs
above the export price for three
years will not reimburse the farmer
or what the government caused him
lose during two years of the war.
It would leave the government owing
he wheat growers $2,048, 000, 900
minus $780, 900 900, or $248, 600, 900.
1t would not be any worse to pay
he farmers 81, 100, 600, 900 than it was
pay the railroads that amount. To
Jay the farmer rs cents per bushel
out of the treasury and not
it to the price to the consumer
would not increase the price of bread.
Under this plan the farmer would sell
lis wheat just as he always has done.
year he will sell at around 80
at Viola or $1.00 at the coast.
he has sold and got his 80
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