Evening star., 1938-09-09

cause the Gov n,,
ernment here will
continue to furnish subsidies but there
comes time when the world price is
depressed to such an extent that sub
sides cannot help much.
The price of wheat, Notwithstanding
frequent comments to the contrary, is,
with the exception Of the freight, the
same at Chicago as at Liverpool Hence
world factors are now influencing the
wheat price for the American farmer
even more drastically than they were
when the worldwide depression was
at its height
Price Lowest Since 1888.
Wheat has this week reached price
which is the lowest since April, 1888.
Circumstances are different. however,
than they were five years ago. There
has been tendency to ascribe part
of the loss to the entry Of the Depart
ment of Agriculture into the world
market with substantial quantity of
wheat to sell. 1t is also true that the
uncertainty over the whole world sit
uation, whether there will be peace
or war in Europe, has cast over the
commodity markets cloud that is
not readily dispelled. Gold has been
gathered in from all parts OF the
world which may be affected by
possible war and has been sent to the
United States for safekeeping. America
offers constant price of $35 an ounce,
no matter what the metal is worth,
and today, as the boarding is on in
full swing. gold is no doubt in great
demand as means Of selling Euro
pean securities or property abroad and
Transforming the proceeds into Ameri-
can dollars.
Whether this Is temporary situa-
ton and may be changed by the an
nouncement of truce in the Czecho-
slovakian controversy, or whether we
are on the verge of long -drawn-out
crisis which will not end till the de-
mocracies of the world have persuaded
Hitler that he dare not make war. is
factor not easily clarified, and
hence markets everywhere are re-
spending nervously to all sorts of
apprehensions.
The important fact is that the
farmers of Midwest America are being
materially affected by the worldwide
developments and that no matter how
effectively isolation policies are prac-
ticed such repercussions do influence
commodity prices.
'Meddling' Opposed Here.
The American Government is keen
1y aware of these interrelationships,
even though very little is said publicly
about it by high officials. There can
be no doubt that American diplomats
abroad are doing everything in their
power to help avert a war, but they
are limited by the knowledge that in
America a very substantial public
opinion is against ''meddling," and
this has been taken to mean that no
commitments or hints as to American
future policy can be given.
In certain sense this is the weak
ness in the European situation. The
British, being democracy, cannot
commit their people to war until
facts confront them which demand
war. In the United States, until con-
crete issues clearly require considera-
ton Of whether American policy Is
involved, nothing can be said by
American spokesmen. Hitler is alert
enough to take advantage Of this
weakness on the part of the de-
mocracies in handling their diplomatic
strategy. Being one-man govern
ment, he need ask nobody how far
he can go.
The opinion is beginning to develop
here, however, that even Hitler will
not venture to bring on a war be-
cause his economic resources are not
comparable to those of Germany in
1914, Notwithstanding his protesta-
tions about the futility of a blockade.
Whether Germany can be blockaded
or not is hardly question of opinion
30 much as 1t is question of statistics
on resources and the potential power
Of the British-French fleets.
Granary Here Again.
So far as the United States is
concerned. there seems no doubt that
war supplies would be bought here
in the next war for the allied govern
ments as they were in the last war.
A protest from various groups will be
inevitable, but the difficulty of mark
ing out munitions from necessary raw
materials used and the problem Of
restricting exports to Canada, which
Is part of the British Empire, as
Mr. Roosevelt recently reminded
European dictators, makes it seem
unlikely that there would be any
change from the commercial situation
which existed prior to 1917 when
America was the granary and arsenal
for the allies
The expectation here is that a war
Is not coming right away and that
peace depends on how far the allied
countries can be bluffed by the Hitler
diplomacy and his aggressive policies
in Central Europe The prospect is
that the uncertainty will prevail for
another year and meanwhile the COM
modify price structure is affected and
American farmers will come 10 realize
that wheat is not far from what
1t was five years ago, notwithstanding
all the artificial efforts made to bolster