Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-22
CHARGES BY HYDE
MAY STIR CONGRESS
Grain Market Procedure and
Diplomatic Relations
Promise Debate.
BY DAVID LAWRENCE.

Although there is no law by which
the Russian syndicate specializing in
wheat can be reached. the controversy
that has arisen between Secretary HYDE
of the Department of Agriculture and
the SovietS Is likely to have some far
reaching consequences in diplomatic
sense
Some of the. Western Senator's have
been getting more and more friendly
to the idea of the recognition of Soviet
Russia, and some of them have been
open in their admiration of the prog
resS made by the Russians American
Senators, particularly from the West.
have been visiting Russia. The issue
raised by Secretary Hyde puts the adj
mtnistration and these Western Sena-
tors In direct conflict on the attitude
the United States should pursue toward
Russia, and makes the farmer much
more interested in the debate than
when 1t concerns export trade in manu-
featured products.
Blame for Decline.
The price of wheat has been steadily
falling and 1t Is not unusual for the
farmer. to blame the SPECTATORS for
depressing prices. It Is unusual how
ever, for the Government itself to blame
spectators. So in this case, of course
the charge is not made against specu-
lation as such, but the short selling of
wheat by the Russians when there was
no possible way they could bring their
wheat to America over the tariff wall
OF AZ cents and sell 1t at the prices
tnat would be necessary under such
circumstances
Some Of the Western Senators are
attacking Secretary Hyde's announces
ment on the ground that the American
Government could have stopped the
speculation by buying wheat through
the Federal Farm Board, or that the
amounts bought by the Russians were
700 insignificant in quantity to affect
the price. Some grain operators are
saying that the administration is search-
ing for an alibi because Of the low
price of wheat.
No matter what the future debate
may reveal, the fact remains that Sec
rotary Hyde has tackled something far
more understandable to the American
farmer than the complex operations of
the Farm Board. For years the farmer
mas been agttating against trading in
future. or harmful speculation and dur
ing the last session of Congress the
Caraway bill, which sought to restrict
such operations, was opposed by the
administration. The difficulty, of course
is IN finding out Just how to regulate
future operations and yet provide an
exchange for the sale Of wheat.
Responsibility Involved.
The Department of Agriculture feels
II has uncovered q serious situation in
that 1t believes the Chicago Board of
Trade should always be in q position
to know whether those who are selling
short can actually deliver.
When Congress reconvenes there will
be renewed agitation for law to regu-
late further the grain exchanges. and
no doubt the Secretary of Agriculture
will be asked whether his experience
in the Russian controversy indicates the
need Of new law. Meanwhile the hope
Is expressed In official quarters here
that the Chicago Board Of Trade will
make thorough investigation and take
the proper steps to prevent recurrence
Of the incident.
This clash between the operations Of
Communistic government and the
capitalisttc system does not bring any
nearer the solution of the problem Of
recognition by the United States Of
Soviet Russia.
(copyright. 1sso)