Agricultural marketing revolving fund

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Monograph

Identifikator:: 1830514946

URN:: urn:nbn:de:zbw-retromon-221271

Document type:: Monograph

Title:: Agricultural marketing revolving fund

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1930

Scope:: II, 39 Seiten

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Monday, december 15, 1930. Federal farm board. Statements of Alexander Legge, chairman; James C. Stone, vice chairman; and Chris L. Christensen, executive secretary

Collection:: Economics Books

3 AGRICULTURAL MARKETING REVOLVING FUND duction of wheat and of other farm products down to a point where it. will be only sufficient to meet domestic consumption ? Mr. Leece. I do. Mr. Byrns. Of course, it is a rather black picture that you draw when you say that they can not look further to foreign markets. Mr. Lecce. We are making that statement onlv on that particular sommodity. oo Mr. Byrxs. How much wheat does the Grain Stabilization Cor- poration have on hand? Mr. Leer. It has 64,000,000 or 65,000,000 bushels of actual cash wheat in elevators and storage, and probably 60.000.000 bushels un- ler futures contracts. . . Mr. Byrns. Has the board come to any conclusion as to what it nroposes to do with that wheat? } ] } Mr. Leger. A portion of that wheat is going to be required in the domestic trade before the new crop comes in, but not all of it. What may happen to the balance, or what may have to be carried further ahead, is still a question. } } Mr. Byrns. I suppose you propose to feed it out in a manner that will not be calculated to break the market? Mr. Lrage. Yes, sir. Mr. Byrns, As it is needed. Mr. Lecee. Yes, sir. ] Mr. Byrns. It costs a good deal to store it, does it not? Mr. Lrcee. Yes, sir; it is an expensive proposition. We are criticized by the public somewhat because of our dealings in futures. Now, futures is the basis on which wheat has been handled for 70 years. If you should sell a boatload of wheat to a man, nine times out of ten he has futures contracts that he turns in in settlement for the wheat. In dealing with it under the present set-up, the same facilities must be used that everybody else uses in the market. For instance, in the case of the wheat that has recently” been purchased, futures were bought rather than the cash wheat, for this reason, that you would have to pay about 214 cents more for actual cash wheat than for futures contracts for the same number of bushels to be delivered in some other month. The cash wheat has been at a premium. If futures were not bought, the private trader would have an advantage to the extent of that differential. Mr. Byrns. What would have happened if the Grain Stabilization Corporation had not purchased this wheat? Mr. Lecce. I have letters from some of the most conservative millers and some of the largest buyers of grain in this country saying that, except for these purchases by the board, wheat wonid he 25 “ents per bushel throughout the country to-day. Mr. Byerns. What did you pay for the wheat you bought? Mr. Lecce. At the present time, the average cost of the wheat purchased 1s around to-day’s market. which is about 76 to 77 cents per bushel. } "Mr. Ayres. Going back to the statement you made a while ago, you stated that the people would have to be educated to decrease the wheat acreage. I believe you stated that that was the only solution of the problem. Mr. Lucee. So far as export growing is concerned, that is true. There are two things that may be done: We mav develop an in-

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