To meet this situation the Food Administration has gone into the wheat business itself. Practically entire control of the buying and selling of wheat is in the hands of the great United States Food Administration Grain Corporation. Through this organization all wheat sales are made to the Army and Navy, to our allies, and to the neutrals. The price which it pays for these huge quantities sets the price for the entire country. The Food Administration also makes the movement of wheat from the farmer to the miller and to the wholesaler as simple and direct as possible. It prevents hoarding and speculation. "I am convinced," said Mr. Hoover, in April, 1918, "that at no time in the last three years has there been as little speculation in the nation's food as there is to-day."
[pg 7][pg 8]As a result of this business management of wheat, the consumer pays less for flour, although the farmer gets more for his wheat. In May, 1917, the difference between the price of the farmer's wheat and of the flour made from it was $5.86 per barrel of 196 pounds. Fifteen months later the difference was 64 cents. In February, 1917, before the United States went into the war, flour sold at wholesale for $8.75 a barrel. In May, 1917, the war, with no food control, had driven the price up to $17. But in February, 1918, after six months of the Food Administration, it had gone down to $10.50 wholesale, and this in spite of unprecedented demand for our very sh
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