OCR Text |
Show WILL SUPPLY WHEAT for mwm Food Administrator Allows Storage for More Than Thirty Day3. NEW BASE PRICE SET San Francisco and Lcs Angeles An-geles Standard for the Utah Producers. Thai lh horn wipply of W.ient shall he kept wiffl-inr for the ncfln of lh U" al miller by aHowlrut 'oru more than thirty flays and that there shall be established estab-lished R new market oulsMfi of Oilr-.iR" for the farmera of I'tah anrl Bouthcrn Malm are part of the amusement s Jusl coniplele.l by the fooil H'lml nisi ratlun at NVaPhlnKlon. , , V W. ArniFtroiiK, rcprrsentatlve of trie I'nlterl SlaleH food rlinlnitfai Ion ifw l"lnh. annouii.e.l In a telesrain from Wanlinmton thai a ronferenre bad oeen held ye.Hterdav "Hh National Kood Adniln-latral'or Adniln-latral'or Herbert C. Hoover and arranse-rnenl arranse-rnenl had been completed for the. prole, pro-le, tlon of millers loealed at points In sections sec-tions where the homo supply ot wheat Is only iuleriuatn for their homo needs, or with a Mball surplus. New Base Price. A new ba:-.e price will be established for the Inter-mountain producer at San Fran- Ih.-o and Lai Ant-eles of $2.10. and for certain points In I'tah anrl southern Irla.no this will prove a more advantageous outlet out-let than Chicago, where the base price is K.20. . I nder the arrangement the government will guarantee the price of wheat anrl this will make the. grain practically collateral for grain holders seeking loans. The arrancement also prevents the draining of the country of the grain supply sup-ply and necessitating the shipping back of the s-upply later with the freight two ways added. Text of Telegram. Following Ifi the text of Mr. Armstrong's telegram : The following a rrangements have been completed with regard to Utah and southern Mnho for the protection of millers located at points in sections sec-tions where tlie home supply of wheat Is only sufficient for their home needs or with a small surplus. It is settled that on a suitable statement state-ment from the in il L of their needs and :he reasons for requiring" modification of them, license regulations will ho modified in each case to permit such mills to accumulate any ' necessarv milling supply and to store wheat for this purpose. Blanks showing the details have been sent out generally to all millers and all the agents of the grain corporation cor-poration are supplied with them, whi.-h will be furnished promptly on application and immediately acted on by the general office. Further, for the protection of milling reserves In sections sec-tions which might be dangerously depleted de-pleted by a crop movement we are planning that the aoove arrangements will be extended by the grain corporations corpora-tions entering into contracts with operating op-erating elevators in those sections uy which the corporation guarantees the value of the wheat and receives in turn the right to order the wheat retained re-tained In t he elevator on the payment pay-ment of storage Insurance and Interest by the grain corporation at the rate of one fifteenth of a cent per busnel per day, which will show profitable use to such an elevator. To Direct Shipments. The grain corporation stipulates to have the right to direct the shipment of that grain and will use this right to direct It to those mills that need supplies later. Such districts as Utah and Colorado and southern Idaho will he Investigated immediately as to whether the current supply of wheat now flowing In should be allowed to leave the section at all and as to now much. If any. should go. The food ndmrnlstra tlon also has devised a form of permit for the creation crea-tion of seed stocks by a modification rf the storage regulations, so as to encourage en-courage the retention of seed in the pertlons where It is to be used. The food administration entirelv agrees that grain control should be used to preserve milling stocks m those districts where tltey will afterward after-ward he needed for future consumption, consump-tion, with as little transportation burden bur-den as possible, and the assurance that the wheat can always be sold to the grain corporation at the price stated ehould encourage the local bankers to accept such credits freely and there will be no difficulty in any event of redlscounttng such paper at the federal fed-eral reserT bank, thus enlarging local credit facilities. Will Preserve Credits. With a view of ameliorating the situation sit-uation arislne from the rigid action of the new department of agriculture grading acts, the food administration is undertaking to buy all grades below No. 3 on sample until further notice. This should greatly assist the farmers who have grain at No. 4 or lower grades. Arrangements have been made for overseas handling of wheat, permitting a new base price being established at S.mi Fram isco and Los Angeles of - 1 n No. I northern, and for certain points in I'tah and southern Idaho this will be found a more advantageous outlet tlian Omaha and Chicago. The eo crnmoni guarantee of t wo d.tlla'-." a bushel at principal interior prima rv markets for the IPIS wheat is fixe;) by law to the principal interior inte-rior primary markets, these being the various terminals of the present era in corporation and the price at points ' removed from these terminals will be as in the present situation reduced hv the s.unc freight differentials as i'.t present. Opportunity to Sell. In other word?, the price under the euirantee for r 1 S will work out tat ro..g ily from 16 to "ft cms a hubd under the government price for this year's wheat. Therefore, it is to the advantage of producers to market tills y;ir's wheat while they have Hie op-portunttv op-portunttv of the larger price. In fact, toe present price lias been graded a hove the government euarantee for the reason, among others. that :t would induce an Immediate and advantageous ad-vantageous marketing of the present wlrs r. T h proposition to establish an'in-terrmuntain an'in-terrmuntain terminal for the purchase of wl-cai bv the grain corporation, is out of the question, for the reason that it would one:i up the whole subject sub-ject in ea'h of the other forty-eight states and wou'd entirelv disrupt The ni"i,-al flow of grain to the established estab-lished markets. ' In r'gard to Increasinr the amount a! lowed 'o grain dealers in the in-frmountaln in-frmountaln count rv for handling vh-at U would be tmposs.hle to ivm'k--ev :en' ior-s ro a general rule, fop .he reason r ha i everv Particular spriirvi 1 irp rw n particular proh'rpis f-fvt of handling, p nd the al r ra i ions mad in the miliorl of mailing and the ha'-e market es'aoli-iied on he Pacific Pa-cific coa:t should improve Hie position posi-tion of the farmer and the grain j dealer. J ' |