Dollar Wheat Is Back

The U.S. farmer's favorite synonym for prosperity--$1 wheat--was a reality last week. Commodity Credit Corp. announced a new wheat loan rate of 98-c- a bushel, up 33-c- from 1940. Together with parity and conservation payments, this guarantees farmers about $1.16 a bushel--best average price since 1927. Under the new Fulmer-85%-of-parity-loan law (TIME, May 12), CCC had no choice.

The new rate was a gift to speculators, who hastened to take advantage of this Government-given opportunity. Prices shot up 3-c- in one day, over 8-c- in a week. At Chicago (where wheat has recently sold at around $1) the loan rate was the equivalent of $1.15.

To Uncle Sam, it was the end of one headache and the beginning of another. It meant a paper profit on the 190,000,000 bushels of old wheat piled up against earlier loans--probably even a chance to unload them. But huge new stocks will soon be consigned in their place to Government care, at the new inflated prices.

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