16 GRAZING FEES GUAEANTY PRICE ON WHEAT. 



400,000,000 less than would be required during the ensuing year 

 for the consumption of the American people and our allies. 



With this information being disseminated through the puDlica- 

 tions of the country, the market naturally advanced. There was a 

 heavy demand for wheat at that time. The 1916 crop of wheat was 

 just about exhausted. There were less than 6,000,000 bushels of 

 wheat at the principal points of accumulation m the United totates 

 at that time. The average annual carry-over m years gone by had 

 been something like 150,000,000 bushels. This comparison will give 

 you an idea of the distressing necessity for the immediate movement 

 of the crop of wheat of 1917. 



Now, then, gentlemen, the wheat had to be moved. It had to be 

 moved on the basis of the market. There was nobody authorized to 

 say that the price of wheat was going to be fixed. Those in author- 

 ity denied that they had the right, that they had the power, or that 

 they had the intention to fix the price of wheat, as I will show you 

 in a minute. 



The wheat had to move on the basis of the market, and the market 

 was advancing daily. The market around August 11 was something 

 like $2.82 in Kansas City. The bill was passed on August 10. 



In the meantime, however, on account of the great uncertainty 

 and the continued publication of suggestions that the price might 

 be fixed, or something of that sort, the grain dealers kept endeavor- 

 ing to get an expression as to whether that would be done. On July 

 10 here is the statement of Mr. Hoover ; it was printed in the Dallas 

 Newsof July 10, 1917: 



It is not the intention of the Food Administration to fix the price of wheat, 

 nor is It expected that it will have any such power. 



Mr. Young. The Dallas News is a paper of large circulation 

 throughout that part of the country ? 



Mr. Clement. It has the largest circulation of any paper in the 

 Southwest. This is an Associated Press report of the words of Mr. 

 Hoover, in answer to continued and pressing inquiries as to whether 

 or not the price of wheat was to be fixed : 



If the food bill passes Congress, however, we certainly will not stand for 

 speculative buying of wheat. 



Now, I want to call the committee's attention especially to the fact 

 that the wheat had been moving in Texas just about 10 days before 

 this expression was had, and from the date of this expression on July 

 10 until the bill finally was passed by Congress the market was ad- 

 vancing daily. No grain dealer could expect to buy wheat nor could 

 he buy wheat on any other basis than the market. No one would be 

 assumed to have tried to do such a thing. 



We make the point that since we could not buy wheat on any other 

 basis than the market, and since Mr. Hoover had expressly stated 

 that he had neither the power nor the authority nor the intention to 

 fix the price of wheat, it was but natural to suppose that the grain 

 dealer would handle his business in the same way that he had been 

 handling it all the time. It was necessary to transmit the wheat into 

 the channels of trade. Many of the mills were absolutely without 

 stocks, and right at that moment, if the grain dealer had hesitated 

 to perform his natural and normal function as a grain dealer, you 



