The Washington times., 1913-12-30
PROBLEM SOLVED,
DECLARES EXPERT
Increasing Production Will Not
Relieve High Cost of Living,
He Says.
Continued from First Page }

Continued from First Page)
prices were high. Secretary Houston,
and Secretary Wilson, his predecessor,
urged Increased production as a solution
of the high cost of living.
The only certainty regarding farm
prices declares the Official state
ment signed by Mr.. Hitchcock, lis that
they will be far below the retail prices
paid by consumers.
Supply and Demand Law Nullided.
However desirable increased pro-
duction on farms may appear to be
from the consumers standpoint. it
does not follow that such increased
production would result in any in
crease in the cash income per farm
or per capita of farm population, or
that prices paid by consumers would
be any lower. The estimated total
farm production in 1918 is less than
in 1912. Had the total production in
1913 equaled or exceeded the 1912 pro-
duction, il seems probable that the
cash income per farm would have
been greater, and might have been
less than in 1912; but it is extremely
doubtful whether the cost to the con-
sumer would have been any less. be-
cause retail prices are promptly rais-
I'd on the prospect of underproduc-
ton, but are very slow to decline IL
there is overproduction-
The long line of distributors and mid
dlemen between the farmers and the
consumers are in a position to take ad-
tain extent. control the market in both
directions. because they are better or
Ganized to keep informed CT crops and
market conditionS and to act promptly.
are not organized, and as individuals
are helpless The high prices paid by
consumers, ranging from to nearly
90 per cent, in some cases more than
the farmer receives, indicate tina. there
IS plenty of room for lowering the cost
OF farm products to consumers and at
the same time largely increasing the
cash income per farm without increas-
ing farm production.
A Marketing Problem.
This condition is undoubtedly mar
keting problem, which Will have to be
solved by better organization of farm
ers and improved methods Of marketing.
When. as the result of such organiza-
ton and improved methods, the price
OF farm products can be maintained at
a higher, level without increasing the
cost to consumers. farmers win be JUS
nhed in increasing the output of their
farms with fair prospect of realizing
reasonable profit on their investment
of time. labor, and money, which in
the aggregate is enormous
In round numbers it is estimated that
The total farm value of all crops for
1918 is $500 coo 900. Ths~ftal farm value
of animals sold and Slaughtered and of
animal products is ss,s5e,ooO,ooo, making
an estfrpated total of the gross value Of
iaIp products of $3.50 0o00ea
IN is roughly estimated that of the
1913 crop, valued at Sc, l00, 600 OOO 80 Der
dEnt viii not be sold, but win remain
81 the farms where it is produced. This
MIL reduce the estimated cash sales of
farm crops to s., s29, 100000
Of the total animal products IL Is es-
umsted that 20 per cent will be con-
sumed on the farms, and that approx
nately so per cent will represent cash
sales amounting to g, S29, ,0oe O0o Total
net cash sales viii therefore be s5s41,-
e0a09o.
The average cash income per farm is
nearly 500. based on census estimate
Of 6.Soo,0oo farms in the United States.