The Coolidge examiner., 1930-12-05
NEWS REVIEW Of
CURRENT EVENTS
Farm Boards Experiment
in Stabilizing Price of
Wheat May Succeed.
By EDWARD w. PICKARD


I INCLE SAM. through the medi-
- um of the farm boards stabil-
fzation corporation, is engaged in
another noble experiment, namely,
the support of the domestic wheat
market to keep prices from expert
encing unwarranted declines. Thus
far the experiment seems to be
successful, for purchases by the
corporation maintained the price on
the Chicago Board of Trade around
the 73-cent level, while wheat in
foreign markets was Slumping far
below that point.
Before the week closed, 1t was
estimated, the stabilization cor
pOratiOn was holding about 100000
600 bushels, and it was said in
Washington that the federal farm
board would ask congress in the
next session for another appropri-
alton of $l00,000,000 to continue
the purchasing policy. The coarse
grains committee of the board at a
session in the Capital strongly en-
dorsed the policy adopted by the
corporation. 1t pointed out that
prices of coarse grains had failed
to reflect the shortage caused by
last summers drought, owing to
the weakness in the wheat market.
A check TO this decline has been
essential if coarse grain prices are
to show the strength warranted by
the feed shortage this year, the
committee declared.
1t recommended that the Treas
ury safeguard the interests of do
nestle producers of coarse grain
by levying the maximum duty on
all mixtures of feedstuffs."
The governments stabilization
efforts were at first severely con-
demned by many grain men, but
their success in the admitted crisis
brought about q decided change in
opinion and won general support
for the plan. However, there re-
mains the question of the disposal
of the great surplus accumulated
by the corporation. Whether an
considerable part of it can be sou
abroad is problematical, for other
countries are getting ready to pre-
vent this by anti-dumping legisla-
tion and DEGREES.
DREMIERS and bankers of the
western provinces of Canada
are doing what they can to restore
wheat prices and prevent recur-
renee of the slump, and with q
measure of success. On the Win
nipeg grain exchange prices were
rising and greater confidence was
manifest. The leaders up there de-
clared the Canadian wheat pool
would not be broken by the crisis.
The premiers of Manitoba, Al
berta and Saskatchewan were in
conference in Montreal and sug
gest that the government set a
temporary minimum of about 20
cents a bushel. A dollar minimum,
however, is the goal of Saskatch-
evan farmers, and wheat grow
ers of Alberta urged minimum
of $1.15. Any plan for stabiliza-
tiOn by the Dominion government
must await the return of Premier
Bennett from London.
THE immediate reason for the
l. farm boards action is thus set
forth by an expert:
The western wheat co-operatives,
both in the United States and Can
ada, have borrowed heavily from
banks. AS wheat prices declined,
and the margin of collateral got
thinner and thinner, the co-opera-
tives were faced with just one
thing-the forced selling of mil
lions of bushels of wheat. A drop
of few cents more a bushel might
bring on a crisis of major proper
tionS.
American millerS have been con-
tending with plenty of cancelled
orders upon the theory that wheat
can be bought much cheaper at a
later date.
Possibly 100000 bushels of
wheat were affected in these two
situations. So, Mr.. Legge and his
associates of the farm board again
entered the market to stabilize
prices.
MYTH a stirring and optimis-
w tic speech President Hoover
W