The Nonpartisan Leader Newspaper, August 25, 1919, Page 9

_moved the chief benefactors ‘the farmers. that at the present time he Congress and Wheat-Price Guarantee North Dakota Representatives Favor Maintaining Fixed Price—Hold Farmer Safer With Government Assurance of Minimum Return Washington Bureau, Nonpartisan Leader. ULIUS BARNES, chairman of the United States Grain corpor- ation, has announced his inten- tion of maintaining the $2.26 wheat guarantee and has also flatly stated that he will oppose with his full strength all efforts to reduce the present retail price of bread at government expense. His policy in these respects has been indorsed by President Wilson and it may be assumed that a very great deal of agitation will be necessary if it is to be altered. At the same time Mr Barnes has admitted that the entire aspect of the wheat situation has been altered since the time when the guarantee was es- tablished and $1,000,000,000 appropriated to sus- tain it in the belief that an open wheat market would bring the farmer returns far under the $2.26 figure, and thereby penalize him for his patriotic response to the government’s urgent war request that he greatly extend his wheat acreage. He frankly states that the shrinkage in North Amer- ican promise since June 1 of this year is approx1- mately 400,000,000 bushels. While this figure in- cludes Canadxan shrinkage the greater part of the loss is in this country. The total figure is about one-third of the estimated 1919 wheat crop of the United States. President Wilson himself admits that “the wheat crop is not what we hoped it would be,” and that it will prove abundant for the nation’s needs only “if handled with provident care.” Recognizing that by the laws of economics re- moval of the wheat guarantee would result in boosting the farmers’ receipts, the North Dakota representatives in the house agree, however, that maintenance of the guarantee is advisable. They point out that this assures tk: . farmer of a minimum return on which he can rely, even though the return now seldom, if ever, exceeds that minimum figure. They are pleased by the deter- mined stand of the federal grain administrator, believing that were the guarantee re- would be the millers and not SAYS GUARANTEE PROTECTS FARMER “I am certainly going to insist on the maintenance of the guarantee,” said Representative Baer. “My feeling is that in this matter, with conditions as they are, the farmer is a whole lot safer in trusting Uncle Sam than he. would be in trusting that very easily frustrated law of supply and demand.” A similar stand is taken by Representative Sinclair, who points to the recent revelations of the federal trade commission, showing that many commodities controlled by the food ~ monopolists have shown marked increases in price regardless of increases in supply, as sufficient evi- dence that big business can make the law of supply and demand inoperative by the turn of a screw. Rep- presentative Young rounds out the trio of North Da- kota representatives with the flat statement that “I am absolutely opposed to repeal of the wheat ‘guar- antee law.” Portions of the statement relative to the world wheat situation made by Mr. Barnes after he had made it clear THE NONPRRTISAN LEAGUE 'S O™ TS LAST LEGS \TLL SOON BE DEADERN A DooR NAlL will resist to the utmost all efforts to lower or raise the present guaranteed price are given below: “Our people should understand the salient facts_ regarding the world’s wheat situation. “1. Shrinkage in North American promise since June 1 of probably 400,000,000 bushels. “2. Shrinkage, the result of lesser acreage and of soil deterioration, in European wheat and rye pro- duction, promising, outside of Russia, a total bread grain yield of 1,500,000,000, against a normal pro- duction of 1,900,00Q,000 bushels. “8. The elimination by war and famine of Russia, Roumania and India, formerly contributing to con- suming Europe 300,000,000 bushels of bread grains. “4, The advance in Argentine prices under world demands until today, with longer voyages and higher freights, Argentine wheat costs delivered in Europe are fully 50 cents per bushel more than American wheat. “5. A broad survey of the world wheat prices in various countries indicates: “Average farm price to American growers under the guarantee price $2.05 per bushel. “Average farm price in the United Kingdom dur- ing the last calendar year, $2.28 per bushel. “Average farm price for big producing courntries, United States, Canada,- Argentina and Australia, producing 1,500,000,000 bushels, $1.94 per bushel. “Averagé grqwer price (largely guaranteed) of Europe’s (15 consuming countries, producing 800,- 000,000 bushels of wheat, $3.75 per bushel. “Average for all wheat growers rated according to the size of their contribution to the total crop of the world, works out an average world grower price of $2.46 per bushel. “6. The farm movement, this new crop to July 25, has already totaled 108,000,000 bushels, and of this, at the guarantee price, the grain corporation has bought not over 15,000,000 bushels. It has no R R I I A T ; I THE FIRST HUNDRED YEARS ARE THE HARDEST l ‘T CANT LIVE! t TELEYALAT CANT LIVE W LAST ANOTHER- —Drawn expressly for the Leader by W. C. Morris, Long after the death of the men who are now assailing the Nonpartisan league and predict- ing ‘its imminent death, the organized farmers may be expected to be fighting the fight.of the people against privilege. said the League wouldn’t last six months, and I stlll stick to the statement.” They are like the man who said: PAGE NINE A i T A DL AT R o e A VA S . NS T L T M SR Y8 - e s i e IT_HAS RECIEVED ITS DERTH BLow “Five years ago 1 authority in law to get it except by purchase from buyers - ho can not find a better buyer. FOR FOUR MONTHZ THERE HAVE BEEN BUYERS ABOVE THE GUARANTEE BASIS. “Nothing supports the theory of intimate rela- tion and influence between wheat price and other foods. In 1917 wheat sold at Chicago in May at $3.45, while corn sold at $1.74. In September the stabilized fair price of wheat was inaugurated at $2.17 and continued for months, while corn had ad- vanced, selling during September at $1.95 to $2.24, and continuing the succeeding months of October and November in the neighborhood of $2. DECLARES FLOUR FELL AS OTHER FOOD ADVANCED “Flour fell from a May price of $1.08 per one- eighteenth barrel, to 89 cents in September, and thereafter ruled in the neighborhood of 80 to 85 cents for almost two years, while the combined price of bread, corn meal, sugar, beans, rice, onions, butter, cheese, steaks, bacon, pork, chops, ham, lard, prunes, salmon and eggs, rose from 4.02 in May to 4.35 in September, and then successively advanced until the high point of December, 1918, of 5.495, since which time there has been a moderate and steady fall. Meantime flour was still, in December, 82 cents per sack. Britain, France and Italy all have artificially re- duced flour and bread prices, buying their raw ma- terial at the world’s price -and absorbing the loss by national taxes. . Any sale of wheat or flour by _ us at reduced prices to them would only save their national treasuries while depleting ours and without any possible reflection in the bread price to their people, which is already fixed. “In America flour is 50 per cent of the final whole- sale cost of bread, and 50 per cent is made up of . labor, other ingredients and delivery. Roughly speaking, to reduce the 10-cent loaf of bread to 9 cents, 65 cents per bushel must be taken from the price of wheat. If flour were supplied to bakers free (under present conditions) - we could hardly attain a retail 5-cent loaf. “Bread, fortunately, is al- ready the cheapest item in the diet. At 265 pounds of flour per person per annum, flour alone covers between 35 and 40 per cent of the entire diet, in terms of salaries. “Fortunately, even with our crop deterioration, America has secured a large crop, and if with later developments a world price is indicated lower than the guarantee basis, the wheat director will not hesitate to readjust Amer- ican flour prices at the ex- pense of the national treasury, as authorized by congress, but the wheat facts outlined herewith and not generally understood would '‘perhaps create the impression that higher prices than the guarantee basis are to be expected. “In the present disjointed state of world influences: of supply and demand we are justified in definite plans to try and stabilize wheat from rising above the guarantee basis is possible. We shall, during the crop-moving period, accumu- late a national surplus as a stabilizer against later, per- haps insufficient, farm deliver- ies, and for resale without na- tional profit. - “The grain corporation is now buying new crop flour low- er by $1 per barrel than any price ruling in the last four months, and these flours will be for resale in any city where prices are improperly high.” e