The Bismarck tribune., 1931-05-19
Relief Plans Are
Being Analysed by
Groups of Experts
Continued from page -

DclIlS AudlyZcu ny
Groups of Expert
Continued from page -
the general plan which finally is ad
vccated.
McKelvie, grain member Of tn
farm board. submitted study of tn
situation of increasing surpluses an,
sagging prices with an outline of tn
United States position.
"We see no possibility" he said, 20
Il satisfactory solution of the worl,
wheat problem which does not in
ciude, as the most important singh
| element, curtailnlent Of production
in exporting countries, Individually
and as whole, until better adjust
ment between supply and dispositio,
can be effected, and restraint upor
fresh expansion of production there
after"
AS material aid toward relievin,
Over-burdened markets, McKelvi,
urged every possible means of con
sumption expansion and suggested
abolition by European importing
countries of their protective tariffs
milling regulations and preferential
Lrices for domestic wheat.
Effect Is Exaggerated
Apart from such extraordinary in.
tervention in the wheat market a.
was felt justified during the last
year." he said, "the effect of market.
ing methods on the level of wheat
prices can easily be exaggerated. II
would be folly to assume that the
solution of the world wheat crisis car
be found in marketing channels. Al
best they can alleviate, they cannot
cure, a serious situation. When SUD.
plies are patiently excessive, in agri-
culture as well as industry, nothing
short of an adjustment of production
will serve to correct the difficulty al
its source"
The former Nebraska governor
saying the farm board does not in
tend to authorize throwing upon for
eign markets the large stocks OF
wheat held by the Grain Stabiliza-
ton corporation, warned against
dumping.
1--WE have come here primarily be-
cause We would leave no stone un-
turned to accelerate sound recovery
from the severe agricultural depres-
sion that has gripped our country and
others. We enter the conference
alert to consider all suggestions that
may yield practical aid in coping with
The world wheat problem; yet we have
no expectation that any grand mag
.cal scheme can be found to solve it
simply and easily.
whatever specific results
ray or may not come from this con-
ference, it will be of great value if
fhe representatives from the wheat
exporting countries can come to an
agreement on the causes of the severe
depression in wheat prices, and the
broad lines of policy which the situa-
ton renders appropriate in each of
these countries. If we can arrive at
common understanding of the
problem and its causes and certain
ways by which it must be met. this
conference will have achieved a sig
nal step forward.
Two courses Indicated
When abnormal SurpluSeS have ac-
cumulated and current production is
ample for all requirements" he said.
Two courses of action are indicated:
consumption must be expanded and
production must be limited.
Neither course alone will suffice /"
ne said. Both must be taken.
Neither in industry nor in agriculture
IS curtailment Of production popular:
IL is merely an absolute necessity.
under given conditions, and will be
forced by the ruthless working of
economic law unless men and gov
ernments work in harmony with that
law and thereby reduce the strain of
its operation"
AS for increasing consumption. Nc
kelvie saw the task difficult but not
hopeless"
There Is room for skillful mer-
chandising that will yield results not
merely for the immediate future but
over a period of years." he said.
Mere propaganda for increase in
consumption Of wheat has been, and
seems likely to be, largely futile. Both
effective merchandising and economic
diplomacy must be called into play.
1T seems highly irrational that, in
world burdened with supplies of an
excellent foodstuff, many nations
should think it in their own interest
TO adopt policies which intensity the
evil by restraining consumption and
increasing production.
1T is paradoxical that reduction of
world wheat prices has led to meas
ures which tend to reduce prices still
further. Eventually such procedures
will be adjudged, by nations adopt
ing them, too costly, both to the
public treasury and the national
economy, to be maintained. The
earlier this outcome is faced and
other steps taken, the better it will
prove for all the nations concerned"
Discussing the American situation,
McKelvie said of grain accumulated
by the Grain Sterilization corpora
ton that there is and can be no
highly explicit answer" to the ques-
ton Of plans for disposing of the
stock.
Will Be Sold Orderly
Simply expressed, however, he
said, sit is this: They will be sold,
but they will be merchandised in
orderly fashion: they will not be
thrown overheard for anything they
will bring, to demoralize domestic
and foreign markets."
He said United States growers had
been urged to cut acreage and were
taking steps in this direction. He
emphasized, however, that the United
States is not out of the export mar
ket because of existing s,lrpluses and
inability to make rapid reductions
and probably will always continue
Gin some degree" to be an exporter of
wheat and flour.
"We believe" he said, that &C
ton in our country on the advice
we have given, in the interest of our
wheat growers, will contribute to-
ward improving the world wheat sit
uafinf1 and un oypect mr. oro..,ers.