SELLING BELOW COST

Evening Post, Volume CXI, Issue 70, 24 March 1931, Page 12

SELLING BELOW COST

(WASHINGTON, 22nd March.

The "United States Farm Board has announced that it will not authorise the Grain Stabilisation Corporation to make wheat stabilisation purchase^ from the 1931 wheat cropland will not attempt,to maintain wheat prices at an artificial1 level beyond May, 1931. • :. ■■ ■ ■:• The board offered the following statement:—"The stabilisation operations are emergency measures which entail a Heavy cost. The Stabilisation Corporation has acquired, and is acquiring, a .very large stock of wheat,, and it cannot indefinitely buy more than it ..sells, or inde^nitely hold what it has bought. It cannot follow the regular policy, of buying at prices above the market, paying heavy storage charges, and: selling below the cost. Farmers know this, and would not ask that it be-done. . . • . "It is too early now to set forth what the sales policy of the Stabilisation Corporation will be in the new crop year, except to say that the stabilisation of wheat supplies will be handled to impose a minimum burden upon : domestic and world prices."' .. ' '■'■••• \ ■' ■ Emphasising, the'necessity for. acreage reduction, and an increase in co-operative marketing,/the ■statement continued: "In sight of the foregoing facts, growers must recognise the responsibility resting upon them." ,':.; ■' :.■.-.' . ' • :■..'.■■ ', / The'board states that if recognises the problem of marketing the present holdings at some future time is a tremendous one. It explains it has ■' no . intention of any dumping of what it now Vcontj-ols or may buy of the remainder of! the 1930 crop. The board possesses approximately 200,000,000 bushels of wheat. •■ Somel,quarters estimate.that by June the1 board will possess 300,000.000 bushels and be in control of virtually the entire surplus wheat in ,the United' States: