The Nonpartisan Leader Newspaper, October 4, 1920, Page 14

o~ AJVERTISEMENTS DontSendaPenny | Not a penny now and yon gat thh po Il— no money last on arm Specxa.lly tanned to re- : Bi in manure, milk, Strong, Gurable leather soles nailed and ldtcbed "Heels that won’t come Durable n leather insoles. Guaranteed counters. Bellows ~excluding tongues. Copperrivetedseams o e, S €50 T8 hago that brooghe these co ec! urchase roug! = 0 & o equalled wholelala value. —a stunning ™~ how you shoes at a bar on ou eat pomninaitlon offer. get the Work Shoel put in at % only$7.26—both pairs for ene price—a record smashing bargain, Send Coupon @ No mone, now bmfa! send n priee, whenbo?l:pa'm not satisfied, retnm both pairs of shoes and we refund y money. Send coupon now, Give .h. on both pairs. We poslitively do not sell either palr soparatoly. LEORARD-MORTON & G0, De; Dept. 1. 7456 ( Ghlongo : Send me Men’s Dreu Shoes and Work Shoes. 1 wfll {’lu{n!ly m sm nat .l:}.&«{" el .n;n"l'gomapfi:'mu you will refund my m: Size, Work Shoes.. ..S!le, Dress Sbon OhBoy! thats protection for you. : Look for the Reflex Edge’ AJ.TOWER CO. ESTABLISHED 1836 BOSTON, MASS, DEALERS EVERYWHERE. AGENTS $6a Day Should be easily made selling our Concentrated Non-Alco- Little or no capital uired. Elegant umpl case forwork. ers. 8 rtnow whfld it’s new. lomll p:rtlcnhn FREE K o AMERICAN PRODUCTS €0., 2642 American Bidg. Clacianatl, 0, Mention the Leader Wher Writing Advertisers Who Gets the Money for Bread? J ust One-Fourth of Price Paid by Housewife Goes Back to the Farmer, Hoover Shows Following are excerpts from a prepared address on ‘“The Farmer and the Price of Bread,” delivered September 22 before the bakers’ annual convention at Atlantic City, N. J., by the former food administrator of the United States BY HERBERT HOOVER household baking, more 25 years, until it now supplies fully 60 per cent of the bread of the nation. I am not one of those who lament this change. Any release of the housewife from the harder burdens of the home is a dis- tinct advance in the standard of living and in the status of the entire family. The price of the loaf has doubled since the great war began and it seems worth while to analyze some aspects of possible reduction. If we examine the component items in the cost of the 12-cent one-pound loaf in New York, assuming average wheat and flour, we will find it can be divided approxi- mately as follows: Cents Baker—FElour .....ce000. 4.30 Other ingredients ...... 1.23 Labor, overhead and gen- eral: . RS e e 410 Profit .o Kn s dvvonesee. 62 Retailer ..., ivvieenen 176 Total .iveveetenssn.1200; The 4.3 eents devoted to fliour could be further analyzed and it would be found that the Mississippi valley farmer receives at the railway station for average of all wheat only about 3 cents from the loaf (and some further return from the animal feed produce from his wheat).: The balance of the flour prices goes to handling, storage, inland transportation, milling ‘and wholesale distribution. S This should tend' to dissipate ‘any notion: that the farmer is: primarily responsible for doubling the price of the loaf. In fact, a reduction of 60 cents a ‘bushel in. wheat would affect the loaf but 1 cent.- In addition to any illusion w1th Te- gard to the size of the farmer’s re- sponsibility in’ increased price, it is desirable to review certain economic reasons why any immediate reduction in the farmer’s return is undesirable, and ‘why, in the long view, even in gradual downward economic readjust- ment, the price of wheat must remain ° at far above pre-war levels. PURCHASING POWER OF . EUROPE IS ORGANIZED A factor affecting the * immediate outlook of price is the more or’ less orgamzed action ‘of the great import- ing states of Europe to. determine commion policies in connection” with the buying of wheat. They thus se- cure enormous power over our market price, and their policies; of course, can not be known on this side’ The present crop has been produced under extraordinarily. expensive ‘con- ditions as to labor and material and no undue margin of profit lies in the present price to the farmer. It is vital that the buying power of Europe should, even in the interest of its. own people, be used intelligently and to support future American production. If Europe takes advantage of any temporary power to artificially reduce our prices, it will commit suicide. Such a course would certainly result in a decrease of ‘production in the western hemisphere. have bread supply from us, it will only be by the maintenance of a high price level for wheat. For the long view, whxle prices of OMMERCIAL baking has - steadily supplanted . especially. during the last If Europe is to- all kinds will adjust themselves down- ward with deflation, I am convinced that wheat should not or, in the long run, can not return to the same ratio price to other commodities - as that whizh it held prior to the war. In other words, if something like pre- war prices should again prevail, I do not believe we will, over any consid- erable term, see the old 90-cent wheat, or anything like it. There are many reasons for this. One of them is that the expansion of the possible wheat area in the United States is now comparatively limited unless we trench on other essential production. In fact, there is even in- deed serious shrinkage of wheat area in prospect; due to the unconquered in- vasion of rust in our spring wheat areas of the Northwest. ‘This threat- ened deficiency must be maintained by an inducement to expand hard wheat production in the Southwest. Furthermore, our average yield of wheat per acre must have a steady in- crease if we are to meet the necessi- ties of an advancing population. - An increase from our average of less than 16 bushels toward the average of western European production of over 25 bushels per acre is in the main - the possible source of supply in the ong run. This can only be:obtained by more intensive cultivation and the larger use of fertilizers, and these ex- tra costs do not show a profit return at present ratio prices. AMERICAN FARMER MUST HAVE A FAIR RETURN The American farmer naturally can ‘only engage in extra expense for ex- tra return. It is sometimes said that our breadstuff needs will outgrow our _ capacity for the production of wheat. “This is not necessarily the case within our century, for it is always possible, to contemplate an increase per acre that would keep pace with our in- crease in population. But this can not be accomplished on the basis of the pre-war ratio price of wheat to other commodities. If we examine the 75 per cent of the cost of the loaf which lies outside the wheat farmer’s portion, we will find it comprises about 7 cents for wages and salaries in transport, handling grain, milling, baking and retail distribution and subsidiary in- gredients, and we will find that this item has doubled during the war. We will also find that legitimate profits on the capital employed in these serv- ices amount to about 1.5 cents; that farmers, other than grain, receive - about .20 - cents for lard, milk and other ingredients, and. that there is today about .35 cents of what may be for the moment called “extra profit.”" There are components of the price which can be reduced ‘without trench- ing either upon the farmer, the wage- earner or legitimate profits. The .35 cents which I have called “extra prof-: it” is approximately the increased spread between the farmer and the consumer above a normal spread in stable markets. While there does not appear any apparently great saving in mentioning one-third of 1 cent on | an individual loaf of bread, it amounts to many millions in our natlonal bread bill. There is also another direction for improvement in the price of bread - without trenching on either wages or the farmer. 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