| Show r MARKET MARKETS I 1 S t GALLED CAllO S Dealers a and d Growers to Gather in In Chicago on Friday to Make Mak Plans as Grain Corporation Quits HE problem of providing a afree T THE 1 free and open market forthe forthe for for- forthe the p purchase se sale sale and nd handling of pf wheat and anti wheat products ts Upon the expiration on of the wheat guaranty act ct which terminates June 1 Is Is' to to be considered red at Chicago I Friday Mark H. H Greene g grain aln corpor corporation cor cor- por U n agent for the Middle West WestI including Utah Utah will be present rese t. t Representatives Representatives Representatives Rep Rep- I of ot wheat and flour trade organizations and newspapers have been Invited to be there according to the announcement of ot Julius H H. Barnes United States Stales wheat director IMPORTANT PROBLEMS PROBLEMS pr Problems of ot great national nation 1 importance importance import import importance ance have made such a meeting im imperative Im- Im according to the head of ot the United States Grain corporation One is the the- present resent level of wheat prices price kep kept jar far ar that t. t o ot the h United States guaranteed price by export buying of ot wheat only which in addition to being artificial and liable to stop at any moment handicaps handi hand c caps ps the he mills an and l results In u underproduction underproduction under under- der- der production of mill feed tor for for- dairy industries Another Is is' the apparent reluctance nc of bt the exchanges exchanges exchanges' to return to tp the prewar conditions of ot open trading and reestablish the hedging facilities which have been suspended during three years of ot government wheat control This attitude of ot the exchanges is due largely to the extraordinary trade hazards resulting from world disorganization dis dis- dis organization Exchange hedging facilities facilities facilities fa fa- fa- fa upon which wheat marketing depended for years prior prIori to the war war must be restored by individual Initiative initiative initiative Initia initia- tive before the underlying security provided by the grain corporation Is withdrawn Mr Barnes declared Otherwise the country faces the risk of wider margins between the producer producer producer pro pro- ducer price and the consumer consumer price and consequent hardship to both FOREIGN FOREIGN BUYING I Foreign buying of ot wheat largely concentrated ted in the hands of ot governments governments governments govern govern- ments at the present time Mr Barnes said is forced by bread subsidies abroad and by the inability of ot their war war crippled private agencies to carry at high values sufficient stock and sufficient flow for assurance of the bread requirements of their people peo peo- pIe He added that the decision of ot purchase and prices paid rests nests in ina ina ina a tew few officials and it Is la measurably i true that these officials with or without without with with- out concerted action can Influence the price level for America I Mr Barnes Barnes' letter I The wheat guaranty act expires June 1 1920 This act let provided in inthe inthe inthe the section relating to grin gram ex exchanges exchanges exchanges ex- ex changes that seasonable steps should be taken to provide for an and to permit the establishment nt of ot a free and open market for tor th the purchase sale sal and handling of ot wheat and wheat products upon pon th the expiration of ot this act HEDGING FACILITIES Preliminary inquiry of ot the grain gram exchanges of the country indicates unwillingness because of ot present extraordinary extraordinary extraordinary ex- ex hazards Inherent In world disorganization to reestablish the hedging facilities on which the AmerI American Amerlean Amer Amer- I I ican lean marketing machinery for years had relied The security of ot hedging mar markets ets enabled manufacturing and distributing agencies to handle large quantities without jeopardizing their capital solvency by by price level changes chang s assured active competition by ready credit While open trading I on exchanges has been suspended for three years the sustaining influence of actual and potential buying of ot otI wheat at the fair tah price basis furnished I the same underlying security I II Because of th these se influences the I wheat producer re received elv d a larger per percent I cent of ot the ultimate consumer price I at home and abroad than in any other land or any ny other commodity This Is now jeopardized by conditions that should be understood by all TRANSPORTATION The chief hazards rest on inadequate made made- quate inland transportation and on foreign buying dominated by governments govern govern- I ments Liquid inland transportation is es essential essential essential es- es if it the producer is to find a aready aready ready market and at a fair reflection of ot the ultimate markets Moreover the five or six eix Ix cities with open ex exchange exchange ox- ox change trading before the war demonstrated demonstrated demon- demon daily dally a na national ti nal price level On the securIty of ot that level grain flowed floed in normal channels not necessarily necessarily I through the particular accumulative accumulative accumulative points at lit which exchange exchange- trading trad trad- ing lag was quoted j. j but uL I E- E Es E's s 's with ith rad-I rad the theS S Continued on on on p page ge 5 k I WHEAT MARKET Continued from page 1 1 potential delivery delvery In 11 those markets It If n necessary essary Under present Inland transportation conditions this poten poten- Ual delivery protection Is crippled exposing the exchanges to concen concen buying and nd particularly that of foreign governments GOVERNMENTAL POWERS Foreign buying at present Is di dl recty or indirectly the act of gov gov- with wih their large resources This ThIs' government buying Is forced first fist by their br bread ad subsidies and therefore the necessity of passing I purchases through their national treasuries seco second d. d because private I agencies crippled by war cannot carry at hl Vi h valnea l if i I and sufficient flow tw-jo tw for assurance of t the bread requirements of their peo peo- Formerly current prices were the meeting point of differing individual indi indi- vidual pInions opinions at t home and abroad affected dally daly by world crop progress or better approximation of ot world con con- Today the decision of purchase purchase pur pur- chase and prices paid rests J In a few officials and it i Is measurably true that that these officials with wih or without c action can influence the price level for America COMMERCIAL PRACTICES Moreover their ar not I governed by usual commercial tice Present purchases confined to wheat because of a desire for home employment Ignore flour and our mills suffer a completely artificial handicap This reflects Into under underproduction production of mill feed for our dairy industries A wheat price advanced In this manner under export buying of wheat only lacks even the cushion of current flour market protection against too rapid a fall should foreign buying for any reason discontinue Private opinion may or may not be confident as to world wheat needs and prices resulting but credits have never rested on the opinion of traders but on the security of hedges which minimize losses in price fluctuations Wide and rapid fluctuations In prices are to be ex expected naturally from fluctuations In I freights the limitations of credits outside of the artificial Influence of the views of foreign government officials i UP TO INDIVIDUALS Jf in addition hedging facilities are Jacking the risks thus faced can only result in a wider relation be between tween producer price and consumer price The grain corporation has protected the consumer to date by resale of purchases made at the fair price level in the protection of the producer Its holdings are almost exhausted its authority about to ex pire Individual Initiative must take up the whole wheat handling ma machinery chinery which may require under underworld world hazards reshaping or adjust 1 menu |
