San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-16
Prices Down S Cents Week
After Presidents
Proclamation.
LOWEST SINCE AUGUST
Commission Expected to
Make Recommendations
on Sugar Tariff.
BY HARDEN COLFAX.

by HARDEN COIFAA.
| Copyright. 1924. by Consol. Press Assn.
Washington, ID. c.. March 49,
Washington officials who are follow
ing with keen interest the President S
first exercise of tariff adjustment pow
ers in raising the duty on wheat 40
per cent a week ago. read to their sur
prise today that wheat prices have de-
clined to the lowest level reached
since last August. The drop in prices
averages about 5 cents a bushel on
the Chicago market in all grades.
Advocates of high protective tar
iff point to the market as vindication
for their claim that a tariff ON food
stuffs protJlcod in America is purely
protective and has little, if any, bear
ing on prices to the ultimate consum-
en- They profess to see also prece-
dent in this, the first major finding
| of the tariff commission, which will
receive careful consideration by the
commission and the President. in de-
termining the course to be followed
with respect to similar questions be-
fore the commission and yet to be de-
cided.
While the present decline in wheat
prices is attributed largely to a wave
of selling orders which broke over the
Chicago market during the last few
days and is therefore entirely uncon-
nected with the tariff. the course of
the market, during the six trading
days elapsing since the Presidents
proclamation, appears to have been al
together unaffected by the increased
duty. At no time has the price risen
higher than quarter of cent n
bushel, Notwithstanding the 12-cent in
crease in the tariff.
Spot Wheat Not Affected.
Spot wheat is not affected by the
increased tariff which does not, UNI
der the law. go into effect until 80
days after the Presidents proclama-
ton. May, July and September de-
liveries, however. will be made with
in the period affected by the higher
duty and it is assumed that these de-
liveries will respond, at least to some
extent. by the supposed stimulus of a
higher import tax. g..
- The following figures show the
course of wheat prices per bushel at
Chicago on March 6, the day before
the President announced the higher
duty; March z, tine day of the an
nouncement, and March 10, week
thereafter: B..
Del. Mar. 6 MARI Mar. 10
May sill 3-S Sill IL S1.O6
July Sill II Sill 5-S S1.06 5-S
Sept. ..S1.12 IL S1.12 S101 Is
Flour prices at Minneapolis also APP
pear to have utterly disregarded the
tariff increase of from rs cents to
$1.04 per 100 pounds. On March z,
flour was selling IN that market at
S6.40; week later it had dropped
D cents to $685..
The highest point reached in 1924
was $3.50, and that was attained more
than a month prior to the announce
ment of the higher duty, or on Feb
ruary 8. The lowest price, S6.15, was
touched, January ID.
Representatives here of farm Or
carnations are warmly praisihg PreSi-
dent COolidge's action III raising the
tariff, however, and claim that with
out increasing the price of wheat and
flour to the consumer, the higher tar
Tiff will give new heart and protection
to American wheat growers by pre-
venting Canadian growers from flood
ing the market with wheat produced
at less cost than in this country. The
existing tariff, the farmers repre-
sentatives assert. has been shown to
be inadequate to prevent American
growers from sustaining large losses
annually.
May Raise Sugar Tariffs.
Within the next 30 days or so, it
is expected the tariff commission will
make recommendations TO the Presi-
dent with respect to the tariff on
sugar. Further hearings will be held
shortly on the petition to recommend
a reduction in the present rat" OF
1.76 cents pound. This proposal is
stuotly resisted by American growers
and producers of beet and cane sugar
and by Hawaiian and Porto Rican
producers who also receive the pro-
lection of the present tariff.
Americas CHER course Of sugar sup
ply is Cuba and the price of Cuban
sugar .at New York dominates the
market. Domestic producers are pre-
pairing to utilize the wheat situation
in their effort to prove that the tariff
has no effect whatever on prices to
the consumer in the United Staes ex-
cept to make possible large domes-
tic production which in turn, pre-
vents a runaway market. Without
the present tariff, domestic producers
claim, te American consumer would be
wholly at the mercy of foreign pro-
dueers.
Refining interests deny this and as
sert that the tariff holds up the price
to the consumer by nearly 2 cents n
pound. To that, domestic producers
dissent, asserting that a lowering of
the present tariff would merely put
a profit in refiners hands; that if re-
finers wanted to keep their present
profits they could do SO and reduce
prices to ,the point of driving domestic
producers out Of business; otherwise
that a reduced tariff would increase
refiners' profits to an unwarranted
degree.
Both sides are preparing for a
showdown before the commission the
last of this month in which it is ex-
pected that the. relation of the tariff
to the price of wheat will play lead
ing part.