The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1911-02-27

as a whole, but VIII at the same time
help me financially, as farmer and
Landowner. ! will not, however, desig-
nate Mr.. Hill as "demagogue" be-
| cause he, as owner and controller of
/ the transportation lines. may want 70
remove the tax or tariff so that his
lines can handle the goods. That is his
business affair.
! am quite anxious to learn what
| course the calamity howlers" in the
| good (half century, old republican
| party who want lower tariff will say.
now that President Taft has put IL up
TO them. VIII they take the medicine
or will they again come back, Join the
good, the true, the faithful believers
to the final end. II may be bitter pin.
II they viii be brave and take II we
might kill the fatted calf"
! Very respec fully,
G. w. Buttz,
Buttzvilie, n. d.
| Mr.. Hills Reply.
Great Northern Railway Co..
Executive Department,
st. Paul. MINI, Feb. z, 1911
Mr.. G. w. Buttz,
Buttzville, N. d.
Dear Sir: ] have Just received yCur
favor Of the S1st ultimo, inclosing our
comments upon the proposed reciproc-
ity agreement with Canada do not
regard you as one OF the "demagogues,"
but as a sincere and well -meaning man
who is deceived by an apparently good
argument in which there is really little
| or no force.
You assume as a premise that tbs
tariff on wheat and other soil products
Is the cause of the difference in their
price here and in Canada You have,
so far as your letter discloses, no 9TH
er objection to reciprocity. If that
premise is wrong, your conclusion falls.
And that premise is totally wrong.
Because your letter shows you to be
an intelligent and thoughtful man, /
wish you to consider the facts govern
ing prices. I shall give you both the
general rule and the concrete facts that
demonstrate 1t.
When a country produces a eonsid-
cradle surplus for export Of any com
modify, the price OF that commodity If
fixed in the market where Il must be
sold. The price of wheat has been for
many years fixed in Liverpool. II is
determined by the amount of the sur
plus product of the United states,
Russia, Argentina, Canada, and all
other countries with wheat to sell, as
related TO the worlds demand for
wheat.
In all the commercial centers this
rule Is as well understood as any other
law. OF trade. Liverpool cables fix the
price OF wheat daily in New York. Chi
cago, Minneapolis, Duluth, Winnipeg,
and every other great wheat market.
OF course, II can make no difference
in the Liverpool price, and therefore
none in any other central market, over
what route the grain Is shipped. The
quotations would not be changed a
fraction of penny II all the wheat OF
Canada went abroad by way of Du-
luth, Chicago. and New York instead
OF by way Of Winnipeg, Port Arthur.
and Montreal.
The variations in price in local mar
kets have nothing TO do with the tar
liff. They are caused by such local de-
mand as is created for wheat in a great
milling center and for barley in a
brewing center. This raises the price
there, and that higher price will not be
reduced because there is a large supply
somewhere else. While reciprocity
might raise the price OF Canadian
wheat, it would not cut one cent from
the price in Minneapolis or Duluth.
This is proved by the official price
statistics OF the United States depart
ment OF agriculture. These give the
following average farm values for
wheat in different states on December
1. not for one year. but for the past
ten years. arrange ten states in
pairs, the states of each pair being
contiguous territory, so as TO consti-
tute an exact parallel to the United
States and Canada:
Iowa, 70 cents; Missouri, rs cents
Tennessee, 90 cents; Alabama, 81. %.
Oklahoma, 10 cents; Arkansas, IS
cents
Oregon, u cents, California, 81 cents.
North Carolina, $1.01; South Caro-
lima, STA.
Take a corresponding illustration
from the prices of barley. These were.
on December 1, 1910:
Kansas, IS cents: Nebraska. IS
/ cents; Missouri. so cents.
Here are differences between states
similarly situated as great and as
steadily maintained as those between
the United States and Canada. Ore
gon and California are especially inter-
esting. because they had last year al
most exactly the same wheat crop, they
join borders, they have like shipping
advantages by rail and water, and
wheat has been on the average ~ cents
a bushel higher in California than in
| Oregon for the last ten years. And IL
Canadian barley would swamp the
American market, why does not the
barley of Kansas and Nebraska at AS
cents per bushel drive the 60-cent bar
ley of Missouri. a few hours travel dis
tant, down to the same levelg
The foregoing figures show that the
tariff is not the cause OF the price diff
ferences between these states. No more
is 1t the cause OF price. differences be-
tween the United States and Canada
bit does not make and can not make
any difference to the American farmer.
except to shut him out OF fine market
for live stock and other products, and
to increase the cost OF lumber for his
necessary buildings
These are facts that you. as q think
ling man. may consider carefully. The