The midland journal. (Rising Sun, Md.) 1885-1947, 1930-12-05
NEWS review OF
CURRENT EVENTS
Farm Boards Experiment in
Stabilizing the Price of
Wheat May Succeed.
BY EDWARD w. PlcKARD


I TNCLE SAM. through the medium
~ Of the farm boards sterilization
corporation, is engaged in another
noble experiment, namely, the support
Of the domestic wheat market to keep
prices from experiencing 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
below that point.
Before the week closed, it was esti-
mated, the sterilization corporation
was holding about 100,000,000 bushels,
and it was said in Washington that
the federal farm board would ask
congress in the next session for an
other appropriation Of $100,000,0O0 to
continue the purchasing policy. The
coarse grains committee of the board
at a session in the Capital strongly
endorsed the policy adopted by the
corporation. It 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 war
ranted by the feed shortage this year,
the committee declared.
It recommended that the Treasury
safeguard the interests of domestic
producers Of coarse grain "by levying
the maximum duty on all mixtures of
feedStuffs.
The governments sterilization eff
forts were at first severely condemned
by many grain men, but their success
in the admitted crisis brought about
decided change in opinion and won
general support for the plan. How
ever, there remains the question of
the disposal of the great surplus ac-
cumulated by the corporation. Wheth-
er any considerable part of it can be
sold abroad is problematical. for other
countries are getting ready to prevent
this by anti-dumping legislation and
DEGREES. r
DREMIERS and bankers of the
\ western provinces of Canada are
doing what they can to restore wheat
prices and prevent recurrence of the
slump, and with measure Of success.
On the Winnipeg grain exchange
prices were rising and greater conf
dence was manifest. The leaders up
there declared the Canadian wheat
pool would not be broken by the crisis.
The premiers of Manitoba, Alberta
and Saskatchewan were in conference
In Montreal and suggested that the
government set temporary minimum
of about 20 cents a bushel. A dollar
minimum, however, is the goal of
Saskatchewan farmers, and wheat
growers of Alberta urged minimum
of S1.15. Any plan for. sterilization
by the Dominion government must
await the return of Premier Bennett
from London.
THE immediate reason for the farm
4 boards action is thus set forth by
an expert:
The western wheat co-operatives,
both in the United States and Canada,
have borrowed heavily from banks.
AS wheat prices declined, and the
margin Of collateral got thinner and
thinner. the co-operatives were faced
with just one thing-the forced selling
of millions of bushels of wheat. A
drop of few cents more a bushel
might bring on crisis of major pro-
portions.
American millers have been con-
tending with plenty of cancelled or
ders upon the theory that wheat can
be bought much cheaper at later
date.
Possibly 1OO.0O0.oOO bushels of
wheat were affected in these two sit
uations. So, Mr.. Legge and his assoc
ciates of the farm board again entered
the market to stabilize prices.
NTITH q stirring and optimistic
w speech President Hoover opened
Wednesday night the White House