GEAZING FEES — GUAEANTY PRICE ON WHEAT. 17 



can imagine what would have been the condition of the people of 

 the country. 



There was a period of about five weeks during which, if the grain 

 dealer had not functioned, there would have been hunger in this 

 country; because, as I have just stated, there were less than 6,000,000 

 bushels of wheat at the principal points of accumulation in this coun- 

 try at that time. The milling stocks were practically exhausted. 

 This was one of the reasons, therefore, for the rapid advance in the 

 market ; the other was, of course, the fact that Mr. Hoover was circu- 

 lating the reports and making the statement that we were 400,000,000 

 bushels short of the necessities of the world at that time. 



On August 11 Mr. Hoover made another statement. This is from 

 the Dallas News of August 11, 1917: 



HOOVEB ANNOUNCES AIMS OF FOOD LAW — SEEKS COOPERATION IN FAIR DISTRIBUTION 

 OP SUPPLY AND ELIMINATION OF WASTE. 



Washington, August 10. 



The American Government to-day assumed control of the country's food sup- 

 ply with the signing by President Wilson of the administration food survey and 

 regulatory bills. 



Formal announcement of Herbert C. Hoover's appointment as Food Admin- 

 istrator was made at the White House soon after the measure was approved, 

 and to-night Mr. Hoover set forth the aims of the Food Administration in a 

 statement declaring its purpose will be to stabilize and not to disturb condi- 

 tions. 



On August 11 he talked of stabilizing conditions. The first thing 

 that he did the day afterwards was to do anything else but stabilize ; 

 it was to announce in the following language, published in the Dallas 

 News of August 13, dated Washington, August 12 : 



It must be evident to all thinking persons 



Mr. McLaughlin of Michigan. Now, you are quoting him? 

 Mr. Clement. I am quoting his exact statement, as published in 

 the News as coming from him : 



It must be evident to all thinking persons that unless the price of wheat, 

 flour, and bread can be materially reduced we can not expect to maintain the 

 present wage scale of the country, and that we must not, in this social read- 

 justment, lose efficiency at a time when we can afford no such sacrifice. 



Gentlemen, that was absolutely the first intimation that the grain 

 trade of this, country had that there was any intention to fix the 

 price of wheat. We knew already that under the bill passed by Con- 

 gress there was no authority conferred for fixing the price of wheat. 

 We acted absolutely on the basis of the supply and demand in a free 

 and open market in the handling of wheat. 



Mr. YoTJNG. Right there, wait just a moment. That was August 

 13 that you got this last information? 



Mr. (Jlement. Yes, sir ; August 13. 



Mr. Young. You are leading up to the matter of the losses that 

 individual dealers sustained through these steps that you mention. 

 Did you have an accumulation of grain on hand at that time ? 



Mr. Clement. No great accumulation ; no, sir. But we had wheat 

 on hand. It is' impossible to handle wheat and not have it ; that is 

 a physical impossibility. Somebody is going to have wheat. The 

 grain dealer was receiving the wheat from the farmers, and at that 



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