Show REGARDING W SITUATION the following is a message from W W armstrong Ann representative of united states 1 rood oad administration at washington addressed to J edward taylor bbate horticultural inspector regarding the wheat situation in northern utah and southern A baho aho I 1 have pleasure in reporting the following arrangements completed with regard to utah and southern South crr idaho tor for the protection of millers located at points in sections where the home supply of wheat is only sufficient for their home needs or with a amali small surplus it is settled that on a suitable statement from the mills of their needs and the reasons tor for requiring modification to them license regulations will be modified in each case to permit such mills to accumulate arty any necessary milling supply and to store wheat cheat tor for this purpose blanks showing the details have been sent out generally to all millers and all the agents of the grain corporations are supplied with them which will be furnished promptly on application arid and immediately acted on by the general office further for the protection of milling reserves in sections which might be dangerously depleted by a crop movement we are planning the above arrangements will vill be extended by the grain corporation entering into contracts with operating eleva elevators in those sections by which the corporation guarantees the value of the wheat and receives in turn the right to order the wheat retained in the elevators on the payment of storage insurance and interest by the grain corporation at the rate of one fifteenth cent per bushel per day which will show profitable use to such an elevator the grain corporation stimulates to have the right to direct the shipment of the grain and will use this right to direct it to those mills that need supplies later such districts an aa utah and colorado and eastern idaho will be investigated immediately as to whether the current of wheat now flowing in should be allowed to 10 leave the section at all and as to how much it any should go the food administration has also devised a form ot at permit tor for the ine creation of said stocks by a modification of the storage regulations so as to encourage the retention of seed in the sections othere it is to be used the food administration entirely agrees the grain control should be used to preserve milling stocks la in those districts where here I 1 they will afterwards be needed for future consumption with as little transportation por tation burden as possible and the assurance that the wheat can always be sold to the grain corporation at the price stated should encourage the local bankers to accept such credits freely and there will be no difficulty in any event of re discounting such paper at the federal reserve bank thus enlarging local credit facilities with a view of ameliorating tile the situation ar rising from the rigid action ot of ne new department orf of agriculture grading act the food administration Is undertaking to buy all grades below number three on sample until further furt lier notice this should greatly assist the farmers who have grain at no 4 cr lower grades arrangements have been made tor for overseas handling of wheat permitting a new base price being established at san francisco and los angeles of number one northern and tor for certain points in utah and southern idaho this will be found a more ad advantageous ant ageous outlet tin ii chicago the government guarantee of a bushel at principal interior primary markets tor for the wheat is fixed by law to ta it 1 e al interior primary markets t these liese being e various terminals of the present I 1 rain corporation and tile the price at points joints removed from these torm term nals will be as in the present situation reduced by the same saine freight differentials as at present in other words the price under the guarantee tor for 1918 will work out at roughly from sixteen to twenty cents a bushel under the government govern me n t price tor for this years wheat therefore it Is to the advantage of producers to market tills this years wheat while they have the opportunity unity of the larger price in fact the present price has been graded above the government guarantee tor for the reason among others that it would induce the immediate and advantageous marketing of the present wheat crop the proposition to establish an in ter mountain terminal for tin the purchase of wheat by the tha grain corporation Is out of 0 the question for the reason that it would open up the whole subject in each one ot of the other forty eight states and would entirely disrupt the natural flow of grain gral nto 0 to the established markets in regard to increasing the amount allowed to grain dealers in the intermountain inter mountain country tor for handling wheat it would be impossible to make exceptions to the general rule for the reason that every particular section has its own iular problems and cost of handling and the alterations te made in method of gradi grading aig and the base market established on the pacific coast should improve the position of 0 tile alie farmer and tho the grain dealer signed W V W ARMSTRONG representative U S food adm i washington sept 22 1917 |