Salt Lake Telegram | 1920-02-19 | Page 6 | U. S. Wheat Guarantee

Ii 1 1 U. U J. J S S. S Wheat G Guarantee 1 i THI T HI HE senate agricultural al committees committee's recommendation en atio for the repeal re- re peal eal of pf the governments government's s g guarantee ar of a minimum price rice e of f 22 a bushel f for r wheat wheat r raises the question as s sUto Uto to wh whether th the fhe r f-r release by the government of its price co control of bf wheat at this time would be advisable both from economic and m market standpoints f as w well W as a matter of j justice to th the e growers i The prevailing government guarantee does doe not expire ire by bylaw b by law until til J June and nd its repeal at t the pre present ent time Jime would youl af affect ct about bout bushels of wheat remaining in farmers farmers' handsor hands or iry in t e elevators eie This means that approximately 30 o per cent ro of f fh the wheat crop of 1919 would be left without the protection assum assumed d by the n national government o as an ind inducement for for ti the e c continued d increased production of wheat J I. I The senate agricultural committees committee's recommendation was was v s made madeS S on th the assumption that without the guarantee and with lan an open pen m market ke the he wheat not sold would br farmer Z yet bring ng the sUit still higher f prices 1 t This This' assumption might or might not prove coy t. t Should i 2 it prove ye true then it V would work an economic i injury ry t 11 j the cOIls con cOIl 5 sumers s sumers in rs bo both h at h home me and nd abroad S Should it prove ve ct I th then it would result in in wiping ou out the profits of of th the producers who i paid un unheard eard of pr prices ces for labor in m responding to the he governments government's r appeal for fora a large wheat crop Ev Even n the m most st comp competent tent market experts eXperts' are are unable n to predict pre pe- diet dict the trend of f prices that at would b be experienced foll following ving the 7 1 re removal J of fhe the government guarantee in view 1 of the t fact act ct that as j a result r sult of th the governments government's domination of heat or wheat p prices i s fb for About i iwo two and nd a half years little effort has been made t to obtain authentic C a information tion in to market condi conditions ions ions' in in all parts of the tIle i world j I i w Taking aking everything into consideration n it would se seem seem seem- m that that th the thet I most st t logical Q c l p plan n would be to permit the the he g guarantee r tee to stand until l. l it it expires expires' by Jaw law by by which time the market machine ma machinery ry can be placed d in desired order r er and the obligation to producers e s full fully car car- carried ried out oad