Evening star., 1931-06-24
WHEAT PRICE GAIN
DECLARED LIKELY
Grain Trade Hopes Hoover
Will Hold Farm Board !
Stocks Off Market. !,
BY OWEN L. SCOTT.
spsc,s, n,sn.,cn 70 TN. s..r

Special Dispatch to The Star.
CHICAGO, June 24-The grain trade
Is pictured as poised ready for q
sprint toward dollar-a-bushel wheat
the momen9 definite word is received
concerning the Government policy Of
handling its zoe, 0,000, coo bushels of Ac-
cumulated grain.
Reports persist on the Chicago Board
Of Trade that President Hoover's next
stroke in an effort to break the eco
nomic blockade will concern wheat.
The rumor Is that he may declare q
years moratorium on the disposal OF
Farm Board holdings. Pivaling his sug-
gestion that political war debts be sus-
pended for year.
The prospect of improved world con-
ditions growing from debt moratorium
caused a paper increaseNof $500, 900 900
in the value Of American crops in one
days outburst of bullish enthusiasm.
But the grain trade agrees that this Is
a moderate response compared with
what would happen on news Of policy
to hold Farm Board grain from the
market.
Would Aid Prices.
Traders are aching for an opportu-
nifty to handle this years crop unf1am-
pered by unnatural and unnecessary
restrictions" explained R. I. Mansfield,
leading trade authority. Word that
the Federal Government would keep its
vast holdings off the market would
have an electric effect.
This move would mean that our
bumper crop Of new wheat, now COM
mencing to move in the Southwest,
would go to market free of competition
with the huge 1880 surplus. 1t would
mean the removal Of the threat that
now hangs over the head of any specu-
lator who buys, uncertain when he may
be wiped out by selling of Government
owned wheat"
Mr.. Mansfield pointed out that the
Canadian crop is in a bad way owing
to drought; the crop in our own North
west appears none too good; Argentine
acreage is being sharply curtailed, ac-
cordlng to private reports, and Aus
tralia has cut her planting
Take a chance under these condi-
tiofS, with the Government surplus out
of the way?" he asked. Traders would
revel in it. But they cannot be ex-
pected to become enthusiastic with
from 100000, 600 to 225, 10000 bushels
OF Government held wheat hanging
over their heads"
For some time financial interests in
the Middle West have been advocating
that the Federal Government either
agree to hold its huge grain accumu-
lation from the market, or agree to
turn it over to private interests for
normal disposal 1t would cost ap-
proximately $36,000,000 to keep this
grain in storage for year.
Free Market.
"a free market permits a full and
free expression of public opinion as to
value" explained Jsmes C. Murray,
president of the Board of Trade And
the American public as a rule is op-
timistic.
Great value is attached to public
investment support and speculative
support for our commodity markets, +"
he said such support, largely with
drawn in the last year, would be ex-
pected to return to commodities with
the judicious handling of the Govern
ment stocks of wheat and cotton
The trade points out that, while
this huge surplus still would exist If
held from the market, it probably
would permit values to work into a
more normal position, where later it
would be much easier to work of the
additional holdings.
Copyright. 1e31)