The Washington times., 1905-07-15
GOVERNMENT REPORTS
FARMERS SAFEGUARD
Strong Argument Showing How Private Enterprises Would
Benefit If Present System of Issuing Crop Statistics
IN Washington Were Abolished

When crop reports are perfect, here
will be no speculation
THE nearer the crop reports approx
mate to perfection, the less speculation
will be possible
ITO abolish Government crop reports
would be equivalent 10 placing the pro-
Queer and the consumer alike of crop
products al the mercy CT the big opera
tors and speculators.
Such is. in substance, the argument
that the Department Of Agriculture off,
Gals make in favor of crop reports. and
of the most accurate ones possible
Demand foE Abolition.
Since the exploitation Of the sensa-
ton about the cotton c-cop reports
which are alleged 10 have ceen nanipu-
lated ard given out TO favored brokers
in advance OF general publication. there
has been from many quarters a demand
for the abolition of the whole sys-
tenn of Government reports why
should the Government spend its money
making crop reports that nobody uses
except a few SPECTATORS in New York
Chicago. New Orleans and Liverpool?
This IS the question frequently heard
The reply Is TO the effect that IL the
Government did not make cron re
port, private enterprise would be In
fuenced by private interest. The only
authority on which reliance can be plac-
ed. In the long run, for relfa bility and
accuracy, is the Government.
Let me explain with this illustra-
ton, said an Agricultural Department
official. Suppose there weret no Gov
eminent crop reports. A clique of wheat
operators ii Chicago determines to cor
ner the wheat market. They proceed &c
organize as perfect an information bu-
why private enterprise could not make
its own crop reports should 1t so desire
These spectators send all over the
country TO their agents. get the best pos
sibie statistics, and thus inform them
selves as to conditions
THE. next step is TO handle the in
forma ton to their own advantage
They find. we will assume, that wheat
warrant high prices. Instead Of issuing
this information, they put into circula-
ton reports. carefully gotten together,
indicating that acreage is large, chinch
bugs are out of business, rust has all
been polished off, and the crop Is going
10 be immense.
Where Government Comes In.
What is the result?
Every farmer who has a small crop
to the prosperity rule. The man with
the big crop. reading that everybody else
is in the same situation, is anxious to
sell early. You know people always sell
on falling market and buy or hold on
rising market.
$50 the farmers hurry their wheat TO
market and the rush to unload 1t fur
Their operates to bear the market. Prices.
which under the honest operation Of
the law Of supply and demand. ought
to go to 81. may be forced down to half
that figure What then? The specula-
tive clique knowing that wheat is worth
81, buy il all up at so cents and hold it.
When they have enough to control the
market they proceed TO put on the
screws.
Having nnisled the farmer.into selling
to them at low figure, they now hold
back the supply until they create an
artificial demand Then they hold up the
the wheat is worth The difference be-
tween the 80 cents at which they bought
and the 81 or better at which they sell
is their profit. and IL is based on the
possibility of misleading the country
about the crop conditions.
With the Government making a crop
report in which everybody places re-
lance. this Is impossible. The specuia-
face about the immense crop that they
declare is being raised But the miller
the farmer. and the foreign buyer. read
the Government crop report. and be-
lieve it They decline to become panic
stricken The Spectator fails because
the man who is raising wheat knows too
well how much It is worth
mis- Illustration. is not extreme. 1t
Government crop report. AS it is now.
the private reports. whether they are
made by brokers, exchanges, railroads,
or whomever you please, must check up
with the Government report or they
are rejected
Another thing 1t is charged by the
cotton people and by the Hopkinsville
and Clarksville district tobacc people.
that our reports have overstated the
crops of cotton and tobacco, thus tend
ing to detress prices. The fact is that
in over forty years of Government ex-
prience making crop reports, there has
never beer a season in which these
same were exaggerated On the other
hand the returns from the balers, the
thrashing machines and the scales have
always shown that the crop report was
rather a little understated.
The reason for this Is easily appar-
ent. Fully 80 per cent of our crop re-
porters are farmers, and the farmer is
the party most Interested IN conserva-
tive statement He can't afford to get
enthusiastic about crop conditions. be-
cause if he does he is helping to bear
the price
How accurate our crop estimates
have been is best shown by the cotton
statistics. 1t is probable that no other
crop In the world IS sc accurately fol.
lowed UP as cotton. 1t is a world-stapie
and it is one that must be marketed
The farmer may feed his corn and oats
to his hogs or horses; he may hanG
his wheat to the grist mill and eat II
himself. but he can't eat or manufacture
his cotton. Sc he must sell it, and cot
ton statistics. based on the receipts a
. the markets, the haulage by the rail
roads, etc, are almost absolutely &C
curate.
We are therefore able TO get a figure
by which TO lest our crop report est
mates.
Colonel Hester. of the New Orleans
cotton exchange, makes up the stats
tics of the cotton yield with the utnos
care and accuracy. And II is the testi
mony Of the Department worst en-
emieS that, however extravagant oui
estimates may at times appear Wher