Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-21
WHEAT SHORTAGE
IN U. S. FORECAST
Higher Prices Are Seen by
GroWer-PointS to Need
of Feed Grain.
BY JOHN F. SINCLAIR.

Special Dispatch TO The Star.
NEW YORK. October 21.-"The
United States Is faced right now with q
feed shortage Of major proportions. In
directly that spells Q wheat shortagel
Such words sound strange, I know, but
they are true" said Thomas D. Camp
bell Of Montana, Americas largest
wheat farmer, in discussing the wheat
problem.
Look at the facts-the authoritative
governmental facts. Corn Is short 800,-
600 900 bushels. Feed another 800, OOO,-
000l That totals 1.100. 100000 bushels.
Now, what can take the place Of this
huge shortage? Just $50, 900, 900 bushels
Of wheat That's all. In q word, for.
every three bushels Of grain short wheat
can supply but one. Does that look bad
for wheat? Quite the reverse. Wheat
ID cheap-dirt cheap today.
Domestic Basis Seen.
"Now mark by word" continued Mr..
Campbell, who looks more like q pros
porous business man than the farmer
of 95 900 acres Of wheat land. Mark
my word, the United States will be on
domestic basis before we can produce
another wheat crop. No wheat avail
able for export.
mo man can make q more bullish
statement than that with reference to
wheat. Wheat Is cheap-very cheap to-
day, and American business interests
would know 1t now If business men were
thinking straight. But they seem to be
terribly confused In their economic
thinking these days, not only in the
farm problem, but even more In other
phases Of industry"
sdYQrHk hnw about pNaaaf0-fnVASf ahn
demoralizing the world price of wheat
by dumping In Europe and short selling
in the United States?"
Mr.. Campbell smiled. :Russial
Everybody blames the Soviet govern
ment for everything bad that happens.
Just think a minutel The total wheat
grown in the world for 1880 Is approx
wheat grown in China and in India.
Now Of this amount, $50, 000, 900 bushels
is exportable--that is, it is sent out of
the country which grows it to those
countries which need more wheat than
"Russia win send about 10000, 900
bushels Of wheat into the world market
this year. But say that figure is too
small. Say it Is 100000 bushelsl
Such an amount would have no per-
ceptible effect on world prices. It's
foolish to discuss such an incident seri-
ously. It's not even o problem"
But what about selling wheat short?"
asked him.
Selling wheat short? That's not an
evil in itself. The grain exchanges
should be regulated and the rules should
be just Is fair to the buyer as to the
seller. But when the United States
raises but 850,000,000 bushels yearly
and q total of $4,000, 000, 900 bushels is
traded In on American grain exchanges
annually, then the short selling Of
100000 bushels by Soviet Russia was
not even drop in the bucket, 80 far as
1t had any effect on wheat prices"
Canadian Crop.
"But Canada-what about It's wheat
crop? HasS1t any effect on American
wheat prices?"
Decidedly Canada raises from ESQ.,
OO0, 900 to 00,O00.000 bushels annually
for export. A great portion Of Canadas
crop is purchased in Canada, TO be de-
livered to England and Europe and sold
short in the United States. That con-
dition has existed for years. There's
no duty on short Sales-so American
farmers have been compelled to absorb
all OF this European hedging pressure
each year, without any duty protection.
There Is short selling problem for you,
II you want one"
.But Is there not Q duty of AZ cents
o bushel on wheat? And Is that not
suincient to protect the American
Eyes, the United States has a tariff
Of a cents buShel on wheat. That
Is certainly high enough for any one.
But most OF the wheat imported Is
milled in bond and 20 cents q busllel
Is related. I know there are many
learned economists and business men
who hold that this grain, If it did not
come to American mills, would go to
Europe from Canadian mills so that the
rebate makes no difference. This would
be true If the United States produced
enough hard Spring wheat, high In
protein, similar to what 1t imports from
Canada, but does not.
"AS q matter of fact, a reduction of
this rebate would increase the price of
American dark, hard Northern Spring
wheat. And it's the first law Of mer-
chandising that If the better goods are
increase accordingly, or in proportion.
Organization Needed.
'Let me make one point clear" went
on Mr.. Campbell. 1.-THE American
farmer Is no angel. He wants no spe-
cial privilege from the United States
Government. He wants only to be put
on q par with other industries which
have been organized effectively in the
last so years.
Labor gets protection through re-
stricted immigration; capital Is well
supported by the Federal Reserve; rail-
road companies have the benefit of an
organized transportation act; public
utilities are so organized they can
charge rates that pay q fair rate on
their investment, but the farmers have
nothing yet in the way Of organized
protection.
Now the Farm Board is trying TO
organize the farmers collectively. It
needs the support of the business inter-
ests as well as the farming interests.
When the farmer is organized, he will
work out his problem as every other
group has worked out its problem. Can
any one conceive of a more rediculos
condition than the fact that focks and
herds throughout the drought area are
being liquidated right now at ruinous