The Miller press. [volume] (Miller, S.D.) 190?-current, 1923-08-16
GOVT. APPROVES, FARM BUREAU
PLAN FOR WHEAT STORAGE

Huron, Aug. Ia: THE government
machinery is all set to give farmers
credit on grain stored in farm ware
houses" is the word just received by
the South Dakota Farm Bureau fed
GRAFTON from GRAY Silver, it's Wash
ington representative, who has receiv-
ed a letter from assistant secretary
OF Agriculture c. w. Pugsley, outlin-
ing a plan for farm storage Of wheat
which is practically identical with
that which the American Farm Bur-
a Federation has claimed to be en-
tirely feasible and practical under the
intermediate credits act and the re-
vised Federal warehouse act.
The next move is up to the farm
ers," continued Mr.. Silver, the Farm
Loan board which administers the in
termediate credits act has notified the
II intermediate credit regional banks
to accept warehouse receipts on
wheat in warehouses approved by the
Department of Agriculture. Now the
Department of Agriculture points TO 4
very cas- method of complying with
its requirements and storing wheat
on farms.
Assistant Secretary Pugsley says:
AN individual or an association or
partnership desiring to enter the
public warehouse business and which
can meet the requirements may be
licensed under the act. A plan for
farm storage within the law is along
the following lines. A number of
farmers in a community might form
a corporate organization. The various
farm stGrages might hen be leased
or sold to the corporation. The cor
poration could then operate the vari-
Gus units as a public warehousing
system. When the corporation meets
all the requirements of the Act and
the regulations, and when it is deter
mined that the various units are suit
able for the purpose Of the Act, a
license would be issued to the cor
poration to operate the different
plants. The corporation, however,
would be obliged to operate the. diff
ferent units as public storage places"
Price Slump Reduced Farm Buying
Power by $4,000 100000
Mr.. Silver shows that "since the
wheat market broke from $1.40 a
bushel just prior to the harvest, to
so cents a bushel, the recent price on
western farms, the farmers have lost
the ability to- pay debts to the extent
of 3 billion dollars" in replying to
some of his critics who are trying to.
belittle the Importance of a living
price for wheat and the fact that
wheat must be marketed in an orderly
fashion this year and a liberal pro-
-nnrfiNn. Of thn 4rnn "a q who'd On thn.
farms awaiting a market.
Mr.. Silver figures that we have in
this country nearly a billion bushels
of wheat and that the price of wheat
has dropped sixty cents a bushel to
the farmers since just prior to har-
vest. This means a slump of $780,
600, 900. Since $1.OO of new credit
will liquidate five times that amount
of Indebtedness the loss of this $780,
100000 means that the farm COM
munities are thus deprived of paying
off debts to tire extent Of SO, 900 ,000,-
600. Thus if 100, 000. 900, TO 200, 000, 900
bushels of wheat remains on farms
until there is a market for it, as
suggested by Mr.. Silver, the farmers
will be able to liquify debts amount
ing to $4,000, 900 900 and the wheat
crop of the United States will become
a much greater asset than if the old
method of marketing is followed.
Before the passage of the inter-
mediate credits act and the amend
ment to the warehouse act a farmer
could. not increase the income from
his wheat crop exeept by increasing
the yield aWith these" two acts func-
tioning, however, it will be entirely
possible to get more money for the
wheat he has produced. By ware
housing on the farm he should take
advantage of the two laws which were
passed especially tC function in such
%exigencies as this and not sell at a
loss.
Break Market With Old Wheat
"The price of wheat was low before
the new crop began to arrive but it