The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-05-21
NEW CHAPTER
OF W AR TIME
HISTORY MADE
DIR. Surface Reports on Stab
iliZatiOn Of Wheat Price
During Big Conflict

A report by DR.. Frank II. Surface,
an economist of the United States
grain administration, made public to-
day reveals for the first time
chapter of war history which is of
special interest to the American
farmer.
Because Of the persistent misrep-
resentation that the price of wheat,
determined by the committee APP
pointed by President Wilson, was not
in the best interests Of the farmer,
members Of that committee had re-
quested that full report should be
issued OH the subject.
A new item in war history is re-
vealed by the fact that without the
action of the American officials, the
farmer would have received only
about $3.50 per bushel for his 1917
crop of wheat instead of the $3.50
dete rmined by this committee as
fair price. 1t is now shown that this
action was taken solely to protect the
American farmers and resulted in
gain of millions Of dollars to them.
The report states that, in the
spring of 1917, the Allies, by bidding
against each other, had forced the
price of wheat from $1.5O to over
$500 per bushel In order to abol-
ish this competition between them
| selves the Allied Governments, before
we came into the war, had CONSOLE
dated their purchasing of world
wheat into one buying agency.
Through the control of world ship
ping and the blockade against the
enemy, this agency was the sole
buyer of export wheat.
The domestic price of wheat to the
American farmer was fixed by the
price which could be realized for the
export surplus. AS export buying
was all in one hand, the operation
of the law of supply and demand
had been abolished and the price of
wheat to the Anne ican farmer, there
fore, would be determined by the
price which this buying agency de-
termined to pay. Price fixing for
American wheat was thus already
under way in foreign hands. Con-
gress had provided minimum price
of only $500 per bushel for the 1913
crop, and it had made no provision
for the 1917 crop then being harvest
ed.
Fix Prices
The Allied Governments had fixed
prices of wheat in their own coun-
tries at about $3.50 per bushel, and
in order to lay down American wheat
to their people att his price, they
considered that they should pay the
American farmer about $l.5O pei
bushel at Chicago for the 1917 crop
In support of this contention, their
agents felt that any higher price te
the American farmer would require
an increase in the price of bread il
the Allied countries; that the Amer.
lean farmer had realized only about
$1.30 per bushel for his previous
years wheat, despite the $500 corner
on the Chicago market which occur
red after nearly 95 percent of the
wheat had left the farms. They also
pointed out that they could purchase
abundant supplies of wheat in Ar
gentina and Australia at $3.50 pei
bushel or less, and that the only rea
son they were prevented from avail
ing themselves Of such cheaper sup
plies from these more distant mar.
kets was because of the demand OF
the American Government for the use
Of their shipping for transporting
our troops and supplies.
In the face of this situation; it was
clear that unless action should be
taken, the American farmer would
receive $3.50 per bushel for his wheat
and the price was already falling
rapidly toward that level. To pre-.
vent this, Mr.. Hoover took the mat