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-