The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-09-22
A New Tempest

"a y LAP
A new tempest has broken upon the country. partcu-
larly the agricultural regions and political Washington,
in the charge that Soviet Russia, by selling grain short"
at Chicago, has helped to break the price Of wheat.
Other than what information was contained in an ex-
change between Secretary Of Agriculture Hyde and the
president Of the Chicago Board Of Trade, together with
such sideliehts as were thrown upon the matter by the
statements of various persons, there is little available
in the way Of actual fact.
The head of one Of the soviet corporations in this
country admitted selling grain short but said it was .
relatively small amount and that the transaction was
one made in the usual course OF business and with no
intention of driving down the price or hurting the Amer
tcan farmer.
Mr.. Hyde did not say exactly how the soviet activity
on the grain exchange was injuring the American farm
er, but strongly limited that, II all the truth were known,
the activity Of Russian reds would be found at the
bottom Of the low wheat price at present. Some per-
sons limited darkly that the whole thing was q plot to
drive down the price Of wheat, thereby making the Amer
lean farmer dissatisfied and preparing the way for q
new revolution in this country.
One disnkes to take the side Of Soviet Russia in any
argument, especially. one with a member Of the presi-
dents cabinet. but this case does give rise to wonder If
the effect of the Russian activities on the grain market
is not being gravely ov~erestimated.
It should be easy to ascertain. As long as a fuss is be-
ing raised about it, just how extensive these dealings
were. II 1t turns out that the Russian sales Of wheat,
which It didn't have for delivery, were no larger than the
sales Of a major grain broker, who likewise sells wheat
without having it for delivery, Mi. Hyde's case is going
to fall pretty flat. g
It is too early yet to make q reasonable estimate Of
the situation but II It turns out that MI. Hyde was emit
ting the well-known cry Of "wolf. wolf" and picking ON
the Russians because they happen to be in dsrepute with
almost everyone, the effect will not be favorable from
Mr.. Hyde's standpoint. The farmers OF this country
are not fools and If this furore turns out to be nothing
more nor less than political propaganda, Mr.. Hyde had
better seek for himself q sturdy storm shelter.
One item Of good may come from the affair, although
it was not emphasized overmuch IN news dispatches. It
Is the relation Of the Chicago market to grain markets
elsewhere in the world. Mr.. Bunnell, head Of the board
Of trade, pointed out that q WORLD market Is operated
1t Chicago. The brokers and traders there are proud
Of the fact.
But out here In the northwest, now that 1t Is called
to our attention. one wonders how . "world market" at
Chicago matches up with q accent tariff per bushel On
wheat If it should develop that Chicasois world mar
ket" In any way operates to nulnfy the effect Of the
tariff. it might be q wise thing to curb the ambition Of
thu Windy City brokers and force them to restrict their
activities to the United States.
But as yet the whole thing looks to be rather a mess.
The ordinary citizen, including those in North Dakota
who have . vital interest in the grain market and in
grain prices. viii reserve Judgment on al phases Of the
matter until they know more about it.