The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1915-09-30

crop as an "~emergency?" The first
thing to do is to produce the crop thai
we may exchange the surplus for the
things we need.
There are several features peculiar
to agriculture that do not apply TO anv
other great industry. One of them is
that the average farmer is compelled
to sell the bulk Of his crop within
three months Of production. The aver.
age consumer buys from day to day
AS a result of this condition a group
of non-producers have organized a
system of grain exchanges which has
grown into a powerful private monor-
oily. Their sole object is profit. and
more profit. They buy on the specu.
~lative, and hold for the consumptive
demand.
First, they force prices down as |, w
as possible, and when they have Sc.
cured control of the bulk of the crop
boost the price to the limit. Our
financial system is well adapted for
their purpose. This would not be toll.
Grated in any other great industry;
not even those manufacturing farm
products into food products.
The annual loss to the farmer is. on
a conservative estimate, 25 cents per
bushel on wheat and other cereals in
proportion.
That might be saved to the farmer
under a just financial system
In the discussion of Rural Credits as
a rule the rate of interest paid by the
borrower is all that is considered. |
hope to demonstrate in later articles,
that it is a minor consideration.
The financial inability of the farm
ers to hold their crop for the consump-
tive demand and the consequent finan-
cial loss in price as stated above
affects every farmer alike. whether he
is a free man or borrower.
The farmer out of debt, or the land
lord who rents his farm. who thinks
that he has no interest in Rural
Credits, is sadly mistaken.
The rent the landlord receives de-
ponds largely upon the value his farm
produces. The merchant, who is al
ways a booster for home trade, does
not seem to realize that a 25 per cent
reduction in the gross volume Of
money received for grain at his mar
ket town affects his trade.
But this is not a local problem; 1t
is a national one affecting every other
industry. The demand for a remedy
is not of recent origin.
1t was recognized by the Knights of
Labor and organized farmers many
years ago. As president of the Da-
kota Farmers Alliance l called atten-
ton to this business disturbing factor
as early as 1887. AS president of The
National Farmers Alliance and Indus
trial Union | tried to make it our
paramount issue in 1928.
In the New Monetary System pre-
pared by me as our official textbook,
IN page 70, | quoted from an address
by Secretary of the Treasury Window
before the New York Board of Trade
January 1st, 1891. HE was advocat-
ing an elastic volume of currency that
would automatically respond to the
demands of trade and said: Gould
such a circulating medium be secur-
ed, the gravest commercial disasters
might be avoided. These disasters
have always come when. unusual &C
tivity in business has caused an alb
normal demand for money, as in au-
tumn. for the moving of u immense
crops. There will always be great
danger at those times under any cast
iron system of currency such as we
now have. Had it not been for the
peculiar condition which enabled the
United States to disburse owe S75,-
900 900 in about two and a half months
last autumn, l am firmly convinced
that the ~stringency in August and
September would have resulted in a
widespread financial ruin"
I wish to emphasize the fact that
We may have a contraction of the cur
rency, either by increasing the demand
or decreasing the supply.
For instance: the price of wheat,
being II dollar per bushel, advances
to $3.50; it would require so per cent
more money to handle it.
Exactly the same effect would be
produced If the yield should be in
creased so per cent, the price remain
ing the same. The law of supply and
demand applies to money the same as
to any other commodity. Secretary
Window understands this law. He
said:
these disasters will always come