Let Them Eat Cake

Up and down the U.S. last week spread a fantastic rumor: bread, the one foodstuff of which the harassed U.S. consumer had every reason to expect an abundance, may soon be scarce. Despite elevators glutted with a two-year supply of wheat, Kansas Senator Clyde M. Reed warned that the nation may expect a bread shortage in 30 to 60 days.

The reason for this incongruous situation is as simple as it is ridiculous. Through its loans to farmers the Government has in effect cornered the wheat market. As a result the small supply of free wheat available to millers has soared to the highest price since 1937. But the selling price of flour has been pegged by OPA to Sept. 28-Oct. 2 levels--when wheat was 9-c- to 12-c- a bu. cheaper. This price squeeze on the millers has now become so great that many have stopped buying wheat and have withdrawn offers to sell flour.

Senator Reed would solve this problem by boosting the ceiling on flour by 58-c- a barrel. Such a move might inflate the cost of living by adding 1-c- a loaf to the price of bread. A better solution would be to permit the Commodity Credit Corp. to sell part of its vast holdings of surplus wheat at less than parity. But this has been resisted by Congress. So, more likely, OPA may take the easiest way out, grant the millers a subsidy. To grain men, this would be crowning folly.

This file is automatically generated by a robot program, so reader's discretion is required.