Evening star., 1923-06-19
SEEK TO REGULATE
PRICES OF WHEAT
Producers and Traders Far
Apart on Any Method of
Sterilization.
BY j. G. ROYLE.

Special Dispatch TO The Star.
NEW YORK, June 19.-The old line
of demarcation between the. grain
producer mad the grain trader was
sharply drawn today as the delegates
<to the national wheat conference
gathered in Chicago to attempt to
work out some plan for stabilizing
the price Of wheat and assuring the
farmer a profitable return.
Producers, recognizing fully the
difficulty of their problem. still were
hopeful of arriving at some helpful
solution. Traders looked on win
feeling OF skepticism. opposing obJec-
tions TO proposals for a reduction of
freight rates on grain, and suggested
tax on bread or l cent loaI Woulu
satisfy neither the producer nor the
CONSUMER,
price, saio one big trader. IF pro
ducers harvest a surplus, the price
must be lowered to world-leVel IN
order to dispose of that surplus. onlg
one thing matters in the making OF
the price of wheat-that is the Ia"
of supply and demand.
Low Price Due to Surplus.
The present low price of wheat is
the result of an excessive surplus not
in America alone. but the world over
and to a lack of speculative buying.
y speculative demand is needed.
especially at the time when the new
crop is beginning to move, when the
farmer wants to market II and when
there is no milling or export de-
mand. With normal speculative BUY
ing the price probably would be
above 8 present level because of the.
crop q 'terioration in the southwest
and I; = chance of a small spring
wheat led. due to the late season
and poss .Jre damage from black rust.
i. 'iCx porters usually buy wheat at
this season in anticipation of foreign
demand. Last year they had bad
season and took a big loss as they
WeEe forced to consiGn their wheat
: abroad before demand developed by
banks which were carrying their
paper They are wary over repeti-
ton Of this experience. Foreign coun-
tries are not financially able to take
. our wheat in the same manner as
before the war. The United States has
the bulk of the gold supply and Great
Britain, the distributor for Europe.
is finding it difficult to secure funds
TO carry big stocks of wheat a pres
ent g."
Although the delegates to the con-
ference admit the difficulty of the sit
uation. many of the thousands who
gathered at Chicago expressed the
belief that constructive results would
he obtained by cooperation of water
and rail carriers, farmers, distribu-
Stors. manufacturers and business men
IN general. especially through meth
"ds to increase domestic consump-
ton.
Cotton Situation More Serious.
The country is facing serious sit
uatfon so far as cotton is concerned,
according TO growers. mill men and
experts throughout the south. The
condition of the Louisiana crop is i'm
proving, but neither that state nor
mississippi IS expected to produce as
Cnuch s was hoped for earlier this
year. Georgia, Alabama and the Caro-
mas are reported in even worse con-
dltion. Now reports are coming in
from widely separated districts in
Iexas. the only state with a good crop
that damage from insects is increa sing
and the condition of the fields growing
less promising.
II is worthy of notice that, while
some cotton miles in New England are
on part time, those companies which
have mills in the south as well as in
View England are running their south
ern plants at full speed.
The market for calcium arSenate,
one of the main weapons against the
boil weevfl, is extremely dull at pres
ent, but the spot supply is limited, and
prices are fairly firm, as dealers be-
l1eve. from reports of infestation from
Texas, that heavy demand will make
itself felt from that state before July
is ended.
tCopyright 1929