The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1909-09-24

Between these first sellers and ulti~
mate buyers came the intermediate
class of traders and spectators, to
effect distribution over the year be-
tween producers and consumers and
equalize prices, making their own profit
out OF that service, which. so long as
advantages. still, the planters were
ut a disadvantage so long as they had
to sell their crop practically as fast as
1t could be got ready for market. It
was for the interest Of the traders. as
well as the manufacturers. Co buy at
the lowest prices, and 1t was also for
their interest to get as high prices as
they could In the process OF distribu
ton.
As the result Of this situation the
disparity between the price obtained
by the planter and that paid by the
manufacturer for use at his mill was
apt to be too wide, and too much profit
went TO the middIemen, dealers and
spectators, to the cost OF consumers
Of cotton goods as well as producers of
tho fibre There is still a considerable
remnant OF the system of making adj
vances upon the growing crop and
putting the planters under obligations
that compel an early selling OF their
product, but this Is diminishing. AS
the growers get into a better financial
condition they become more independ-
ent. and they naturally cast about for
means Of getting better share of the
price which the consumers have to pay,
IN other words a better selling price
for themselves, cutting down the mar
gin of ire middlemen, who cannot be
wholly dispensed with. There have
been variods attempts at combination
to hold back the supply for price 10
be agreed upon. This would require a
strong orga~lzatior, large storage ca
pacity and general cooperation. and
would prove impracticable as an at
tempt to- defeat tho law of supply and
demand by suppressing competition
and establishing monopoly. as
Fixing q price and attempting to adj
just the letting cut Of supply to main 4
tain 1t, regardless of what the actual
supply and demand may be, Is a de.
fiance Of economic law that would
prove costly and be sure TO fail. Now
there comes the scarcely more practi-
cable proposition of Mr.. Thompson, of
the New Orleans Exchange, that the
planters keep control of their crop of
cotton and peddle 1t out to the market
at the rate Of 10 per cent each month.
carrying their sales over ten months OF
the year instead of crowding them into
two or three. Many of them are not
yet independent enough to do that, and
to keep the cotton In proper condition
1t would require facilities for storage
which few Of them have or can afford
to provide. IL would require a degree
Of mutual agreement and co-operation
about as difficult to secure and main
tain as the combination necessary to
obtain a fixed price, agreed upon In
advance. There Is plenty Of room for
in the equitable market
ing Of cotton and curtailing abuses of
speculation, but these schemes will not
work, and exchange operations through
dealers and brokers cannot be econom-
ically dispensed with.
The position of the farmers who
grow wheat is in many respects differ
emit from that of cotton planters, but
they too are seeking to gain more
control over the price at which they
sell their crop. Formerly they were
also hampered with debts and mort
cages, but. according to all accounts,
they have mostly got free OF those in
cumbrances and can take their time In
selling, provided they have proper
storage facilities. But they cannot
effect an organization among them 4
selves sufficiently general and cohesive
to prevent a competition that may de-
feat the plans of those who attempt to
hold their supply for satisfactory
price, and will in any case subject
them to considerable. risk. 1t will de-
pend very much upon their individual
knowledge Of the state of the market
and their capacity for accurate calcu-
lation and sound Judgment, making of
them dealers as well as producers. II
is doubtful IL many would be success
full in that doubt role, and traders and
spectators are likely to maintain their
place as a utility IL not necessity in
marketing the wheat crop. If farmers
and millers can so conduct their own.I
interests in the market as to curtail
the artificial advantages which specu- \
lators seek to make for themselves, so
much the better.
Our wheat farmers have nothing APP
preaching the advantage of the cotton
planters in the control of the supply
of their product. American wheat is
diminishing factor in the worlds mar
ket and is by no means controlling
one, and the price viii be determined
mainly by the importing countries.
Our surplus must compete with that OF
Canada, Argentina, Australia and India
as well as that OF European countries
which have surplus, and the farmers
will have difficult problem to deal
with IL they undertake to determine
their own selling prices. The profess
sional traders and the spectators upon
the exchanges win have the advantage
OF them, and are not likely to be beat
en- at their own game. Intelligence and
foresight, keen calculation and ra-
tional self interest are to be commend
ed, IL accompanied by honorable meth
DDS and fair play, but the system of
intermediate dealers and distributors
between the producers on the soil and
the consumers In the market places
will continue to be an economic neces-
sity.
GOOD ROADS IN ROME.