The Washington times., 1929-05-28
WHEAT SLUMP
RUKEYSER
SUBJECT
BY MERRYLE s. RUKEYsER
tCopyrixht. l6as. by uhiversai
Services. Incl

NEW YORK, May rs.
n SPITE Of the slump OF wheat
futures 10 Just above 81 a
bushel George G. Williams.
vice president and treasurer of
the Chicago Joint stock Land
Bank, and an astute observer OF
the effect Of farm prices on pros
perity, anticipates no serious eur.
tailment in the purchasing power
OF farmers In the forthcoming
year.
Current grain quotations, MIR.
Williams pointed out, In a mes.
sage to this column, "are affecting
adversely the morale of the farm
ers generally In Iowa and Illi-
nois. / DO not feel. however. that
u Is causing them any serious
financial loss, as comparatively
small quantity OF grain is still In
the hands Of the farmers.
anticipate no serious cur
tsilnlent OF purchasing power Of
the farmers during the next crop
year. Buying Is still emerging
slowly from hand-to-mouth
basis. Farm machinery and every
article q farmer uses is being
worn out and he is being forced
to use more money to replace
these things to stay In business.
His creditors understand this
end permit 1t for their own ulti-
mate advantage. think that
the farmers viii buy more this
year than last. Up to this
time quantity and quality Of pro-
duction should more than off
set lower prices. IL lower prices
should prevail when the new
crops are marketed. The neces.
sity for rigid economy is still
urging the, farmer into the mail
order market in great numbers
and volume OF purchase"
1t Is noteworthy that the slump
IN grain prices came while Con.
gress was in special session for the
purpose of granting farm relief.
Evidently the market has not con-
strued the Administration pro.
gram as hullish. MIR. Williams
offered this explanation: Mr..
Hoover, from honest convictions
arrived at through his particular
training and experience, Is not in
4NAO AtAChk0t pOEAbhOh ~ put IhC
force of his influence behind legis-
lation that will really start farm
ing toward a par rating with other
b slness. An emergency exists
and It should be treated az such
for period OF five years, which
should give the new farm board
time to work out permanent
plan on sound economics. Right
now I am inclined to think that
Mr.. HooVer's, chief concern Is to
put tbs. proposed $500, 900 900 fund
provised for in the bill, in the Gus
fody Of some one who will see that
the Government does not lose one
cent OF 1t.
A liberal application of the
debenture plan for five years will
turn the tide Of farm depression.
On the other hand, c. 4. Jaf-
fray, president Of the Minneapolis,
st, Paul ana Sault ste. Marie
Railway Company, whose head
quarters is in Minneapolis, in q
statement prepared for this COL
un1n, takes the position that the
present quotations for wheat are
not above the cost of production,
and that OF necessity farm pur-
chasing power win be curtaiIed.
unless there is q sharp recovery
Of prices by next September,
when the bulk Of crops In that
region move to market.
At present. with the large win.
ter wheat crop in prospect, we
can see no reason why prices
should be more favorable later
on IL this crop natures as it now
promises" Mr.. Jaffray added.
The executive was OF the opin.
ION that the new trend toward