The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-04-08
STAbILZATIO
Plan HASFAILEDT TO
Bring SATISFACTION
Accommodations Are Menace to
Coming Crops, Board Of
Trade Head Claims
LISTS 4 RECOMMENDATIONS
Government Operation Has
Proved There Is No 'Phan.
tom Wheat He says

Chicago, April 6.-NN-Presldent
G. Murray, OF the Chicago
board of trade. declared Wednesday
the Sterilization program Of the farm
board has failed completely in the
attempt to maintain the markets on
any satisfactory level" In sn adj.
dress before the Chicago Association
Of Commerce, he said the farm
boards operations have resulted
only in accumulations which are q
menace to to the coming crops"
Referring to the fact that the board
Of trade would be 50 years old Thurs
day, Mr.. Murray said the exchange
now provides work directly or indi-
rectly for 100000 persons, that Its
members maintain bank balances OF
more than $500. 000. 900 to finance
movements Of the farmers corps, and
that to this vast machinery the 80
other American grain exchanges look
as q true price barometer.
Large volume Of hedges an6 re-
hedges handled through this market,
much Of the wheat being In unde-
Iverable positions. he said. was re-
sponsible for the term Phantom
wheat"
Is No Phantom Wheat
But there is no such thing as
Phantom wheat" said MI. Murray.
Every sale is q bona fide contract
for delivery, and every purchase like
wise carries with 1t the responsibility
Of accepting delivery. Settlement Of
d sale by offset Is simply buying
back or substituting some other sell
er through purchase.
mo better example Of this truth
Is found anywhere than in the pres
ent appearance of Uncle Sam in the
wheat market. If there is anything
ghostlike in purchases of wheat for
future delivery in the Chicago mar
ket, 1t is hoped 1t win appear soon,
as III government In attempting to
forecast the trend Of values by stab
ilizing through pegging the price has
so far found little encouragement In
the theory Of Phantom wheat.
Passage Of the agricultural mar
keting act intended to be Of benefit
to the farmer has admittedly failed
of its purpose. Ably managed by hon.
est men interested In the working out
Of a definite scheme Of farm relief,
the operation of the act has again
demonstrated the futility of inter-
ference with the normal action and
reaction to supply and demand"
Through the act. he said, the gov
eminent has advanced large sums
for the purpose Of building up CO.
operative companies, under obligation
to market their grain through the
single channel approved by the farm
board" But 1t has been clearly dem
onstrated in the experience of other
countries that the unit system Of
marketing through one national
channel Is not q success, and that a
free and open market, carrying a
wide public interest Is the only sound
and safe means Of disposing of stable
crops"
Lists Recommendations
MI. Murray said the board Of trade
strongly recommended the following:
First. that the government should,
at the earliest possible date, divest
itself entirely Of the business of mer-
chandising grain, to the end that the
marketing Of the surplus already
stored up shall be handled by the
regular dealers in the domestic and
export trade with the least possible
disturbance to the marketing of the
coming crops"
Second. that In assisting the de-
velopment Of cooperative marketing
as required under the terms Of the
act, government funds should not be
used 1t lower rates Of interest in the
merchandising Of commodities In
commodities in competition with the
established trade.
Third, that the maintenance of a
free and open market for grain with
q wide public interest Is essential to
Continued On page nine,