Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-19
GRA|NP|T TRADING
METHODS SCORED
Wheat Farmers Declare
Present Prices Are Result
of Speculation.
speclal pispatch to the star.

GpcCldA DlSpaECn 10 Ane SSdIs
CHICAGO, March l9.--Middle West
ern farmers declare that $1.18 bushel
for what in Chicago, which means a
price to the growers of 81 bushel or
less, according to kind and grade, is
not nearly sufIlcient to afford any profit
for raising the crop. While they report
that this years wheat is now nearly all
out of the growers hands, they are
strongly opposed to any effort on the
part of the Government to stabilize the
price anywhere down around the $1.20
level.
The crop is now largely in the hands
of the millers and spectators. Wheat
growers who have lost so heavily on their
grain blame the Chicago Board of Trade
for many of their troubles, and are
bitter against trading in grain futures.
If Congress would place ban on the
Chicago grain pit trading. the so-called
farm problem would settle itself, many
Of the biggest wheat growers assert.
Average Production Cost.
Statistics show that the average cost
of growing wheat in the entire United
states is about $1.65 bushel, based on
the average yield of Is to IA bushels
per acre. The average cost of growing
corn in about 90 cents per bushel based
on the average yield of 25 bushels per
acre. In presenting their side of the
case the farmers declare that supply
and demand are ignored, and that the
price is fixed unfairly on the Chicago
Board Of Trade, which permits the
creating of a fictitious overstocked mar
ket by unlimited trading in futures"
During the recent slump in grain
prices there was sold in one day on the
Chicago Board of Trade "A 900 900 BUSH
els of wheat futures" or paper grain.
while the actual wheat received that day
in Chicago was seven cars. On another
day 100000 bushels Of wheat tu-
lures" were sold, while the receipts OF
real wheat were 20 cars.
Another day the paper grain sold was
81 900, 900 bushels, while the real grain
received was 81 cars Another day the
paper wheat sold was 106,000,000 BUSH
els, while receipts Of actual or real
wheat was 18 cars. The total yearly
sales of wheat futures or paper grain,
on the Chicago Board of Trade are
more than 10000. 000, 900 bushels, which
is put on the market in competition with
the real grain.
Senate Bill.
1t is pretty certain. the wheat growers
say, that bill now pending in Congress
Is. 2846) that prohibits the sale Of grain
for future delivery, unless the seller has
the grain, would, If made a law, in
stantly settle the farm question Grain
would sell at good price if there was
an open market, based on the supply
and demand for the actual grain. But
growers cannot compete with the paper
grain now put on the market. This
Board of Trade system is Of no use to
the farmers, but only to the manipula-
tors and to the millers and foreign buy
ers, who get the benefit OF depressed
prices.
Prices have gone down In spite Of 9
reduction in production IN the past three
years. The Agriculture Department re-
ports that the wheat production OF the
world last year was IA per cent les'
than the year before. and that the esti-
mated corn crop last year was 2,100,'
100000 bushels, the year before $780,
600 900 bushels and the year before the
aforementioned 1t was 1900, .00C
bushels.