Evening star., 1923-11-05
Cooperative Marketing Held
Solution of Wheat Problem,
adjustment of Acreage to Conditions of
World Production Also, Recommended
mReportby Var Finance Corporation.

to the report, but with regard to the
proposal that the government pur-
chase surplus" production a different
ers of the latter plan state Il "in
very simple terms" the report said.
adding 'it Is. of course, by no means
as simple as 1t appears" and likely
would subject the American govern
product into world markets. The Of
hcials pointed out that this govern
ment had sought to protect itself
from that sort of thing through a
lieved a policy Of dumping abroad
would bring serious reactions.
The two officials said their study of
agriculture conditions gave them a
more hopeful feeling regarding the
future of the industry than many of
those interested in certain lines of
production are inclined to believe"
Would Lessen Income Surtaxes.
Their report also declared that the
higher brackets of the federal income
surtaxes should be reduced and the
privilege of issuing tax-exempt Sc
curities abolished.
Among the plans for solving the
wheat problem given the two officials,
tnese were set out in the report as
the more Important:
AN increase in the wheat tariff.
"Government price-ixing, accom-
the wheat trade.
Government purchase of the So
called surplus with the view of ex-
porting it to foreign countries.
distribution of $58.OO0.000, which
1t was stated was profit made by
the Grain Corporation during it's
existence.
Modification of the present immi-
grafton laws so as to provide for the
selective admission Of larger sup
Dly of labor
Organization and development of
cooperative wheat marketing asso-
ciations.'
The report discussed the various pro-
posals at length, but went into more
detail with respect to cooperative
marketing, declaring in conclusion
that even where sentiment existed for
the purchase of the surplus or for
price-f fixing there was general admis-
sion that plan contemplating order
fundamental factor In arriving at a
solution. In the view Of the two off,
cials 1t provides the only method by
which the producer can avoid to any
extent reliance upon the speculator,
whom the report described as the
key man" in the Industry at present.
Spectator Held "Mnster Mind.n
The speculator," the report went
on, lis supposed to be the master
mind, directing and distributing the
now OF wheat, adjusting supply and
demand and stabilizing and steadyinr
prices. The trouble Is that the specu
lator does not observe the rules laid
down in books on political science.
No one can foretell whether, in time
of need, he will be there or not.
when he is most needed he is often
least In evidence, and, in fact, on a
declining market is likely to- make
matters worse by selling wheat,
rather than buying.
AS result the public contract
Wheat market since the war has not
been fulfilling in a satisfactory wav
Its supposed functions as a regulat tor
and distributor of the flow of wheat.
1T undou btedly has legitimate field
or usefulness. But as the principal
piece OF machinery for adjusting the
price Of the great American wheat
crop 1t is. under present conditions
entirely inadequate. 1t may be good
as far as it goes, but 1t is not big
| enough for the task nor is it depend
able enough to be the wheat trades s
sole reliance"