Evening star., 1930-06-21
CHANCE OF PROFIT
IN WHEAT VAN|SHES
Small Farmers Unable tC
Make Money at Prevailing
Grain Values.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, June 2l.-Probably the
drop in September wheat yesterday
closing at e6ss cents, had as much
to do with the drop in stock prices as
anything else. The market opened
strong and closed weak. Few were
courageous enough to purchase in any
siZeable blocks after the price declined.
The present price of September
wheat does not give farmer a chance
to make any money. 1t practically
tells the farmer that he cannot make
any money this year.
While some owners of large farm
units, cultivating 10000 acres and up,
say they can produce wheat, year in
and year out. on an average of so to
so cents a buShel, hundreds of thou
sands of small farmers. cultivating
from 100 to 500 acres, say that it is
impossible to produce wheat under 81
a bushel.
With July wheat selling at 93Ts cents
and September but 3 cents more. it
looks discouraging at the moment for
the farmer.
So the bears rallied to make it an
other field day and stocks dropped
from l to 20 points as result
Owen D. Young's San Francisco
speech centered on the whole problem
of the surplus, and covered ''the surplus
in wheat, cotton, copper, oil, automo-
biles and unemployed plants and men"
What shall we do with the surplus
in cotton and wheat-burn or export
1t? To burn the excess wheat and
cotton while men are hungry and un-
derclothed will start confagratlon
which We cannot STOP" said Mr.. Young
Export is the answer. Selling surplus
goods is a sensitive business. 1t re-
ouires tact, judgment and experience
and daring confidence in dealing with
potential buyers.
"One cultivates his potential buyers.
He does not rebuff them. He seeks their
friendship and their good will. II they
need credit he extends it. If they have
goods which he can take in exchange
without curtailing the business of his
own country, he makes 1t point 10 take
them" said Mr.. Young.
So a national policy dealing with the
surplus is badly needed, according to
Mfr. Young, particularly tariff policy
as distinguished from tariff bill"
Some day the American policy-politt-
cal and busineSS-will deal more effec-
lively with this QueStion-already ma
dor problem.
Mr.. Young's remarks will bring this
vitality important subject more speedily
into the spotlight.
The resignation yesterday of DR.. Paul
Moldenhauer, German minister of
finance, was due to inability to secure
free hand in cutting down govern
mental expenses, which the last Gilbert
report suggested as absolutely necessary
for the country's stability.
Germany's business conditions today
are suffering as are the conditions in
other nations, with the unemployment
dole growing and becoming a serious
factor in budget stability.
A strong man Is needed at this time,
and reports are that DR.. Hjalmar
Schacht, the former head of the Reichs-
bank, considered one of the strongest
figures in business and finance in the
republic, may be asked by Premier
Bruening to take over the finance port
folio.
When DR.. Schacht retired as presi-
dent from the Reichsbank, it was re-
ported that he was politically ambitious
Or. Schacht's well known resentment
against the Young plan, as well as his
strenuous opposition to promiscuous for
eign borrowing, has earned him the op-
position particularly of the Socialists,
who have, since the war, been in favor
of more and more foreign capital to re-
vive and upbuild their industries and at
the same time provide more and better
Jobs for labor.
Germany faces in the coming year
ehe hardest task in budget balancing
since the mark stabilization in 1924.
When Samuel insult made his faux
pas asking United States Ambassador
Sackett to omit that part of his address
before the World Power Conference in
Berlin which declared that the sale
price Of electricity was Is times the
cost OF production, he opened the flood
gates.
Nearly every succeeding speaker has
referred to 1t in some way.
George N. Tidd, president of the
American Gas g. Electric Co., answered
the charges by saying:
while 1t costs electrical companies
something to produce current, the cost
of producing water has been discovered
to be nothing, yet its user pays quite
q fair sum per gallon. Would you call
such a condition in the supply of water
q serious scandal?"
Then Mr.. Tidd continued: "The cost
of production when the water is in the
hills is nothing. But by the time it has
been collected, purified and transmitted
high expense has been invariably in
CURED. The same with foodstuffs. The
cost Of the banana on the tree is small,
yet by the time it has been gathered
and transported the ratio far exceeds
IS to l."
Ambassador Sackett's main point
however, was that 1t was up to the
power executives to bring production
and consumption costs closer together
or be prepared to face q strong public
ownership movement.
(CopyriEht, 1880. by North American News
paper AllianceD