The midland journal. (Rising Sun, Md.) 1885-1947, 1925-06-12
HOW PRICE OF WHEAT WAS
MADE DURING THE WAR

Action BY PFeSlOenC WHSOh SOh-
mittee Saved Large Sum
For Farmers
| A report by DR.. Frank M. Surface,
an economist of the United States
grain administration, just made pub
lie reveals for the first time Chap
ter of war history which is OF special
| interest to the American farmer.
Because of the persistent mis-
representation that the price OF
wheat, determined by the Commit
tee appointed by President Wilson,
was not in the best interests OF the
! farmers, members of that Committee
had requested that full report
should be issued on the subject.
| A new item in war history is re-
yealed 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 $2.20
determined by this committee as a
fair price. 1t is shown that this
action was taken solely to protect
A 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 $1.50 to ovel
$500 per bushel. In order to
! abolish this competition between
themselves the Allied Governments,
before we came into the war, had
consolidated 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 OIL
1
been abolished and the price OF
wheat to the American farmer,
therefore, would be determined by
the price which this buying agency
determined to pay. Price hiking foi
American wheat was thus already
under way in foreign hands. Con-
gress had provided a minimum pric.
of only $500 per bushel for the
1918 crop, and it had made no pro
vision for the 1917 crop then being
harvested.
The Allied Governments had tixeu
prices of wheat in their own coun
tries at about 1870 per bushel, ant
in order to lay down America
wheat to their people at this price
the American farmer about $1.5t
per bushel at Chicago for the 1871,
l crop. In support of this contention,
their agents felt that any higher
price to the American farmer would
require an increase in the price o.
bread in the Allied countries; tina;
the American farmer had realizet
only about $1.30 per bushel for his
previous years wheat, despite tn,
$500 corner on the Chicago marke,
/ which occurred after nearly 95 pc
cent of the wheat had left the
farms. They also pointed out thai
they could purchase abundant sup
plies of wheat in Argentina an,
Australia at $3.50 per bushel O
less, and that the only reason the.
were prevented from availing them
selves of such cheaper supplies from
these more distant markets was be
cause of the demand of the Amer
lean Government for the use OF thei
shipping for transporting our troop
and supplies.
In the face of this situation, j
was clear that unless action Shout,
be taken, the American farmc
would receive $3.50 per bushel TO,
his wheat, and the price was alread
falling rapidly toward that level,
To prevent this, Mr. Hoover took tho
matter up with President Wilson
I'm order to do justice to the pro
ducers who have shown great pat
riotism in special effort to increas
production" Mr.. Hoover wrote tn
President in July, 1917, lit is alb
solutely vital that we shall protec
the farmer from slump in pric'
this year due to glut or from the un
controlled decisions of only one
buyer"
Acting on this recommendation
President Wilson appointed an in
Il denandant committee which com.