Arizona republican., 1917-04-20
May Have Hearing Where the People
Patriotism and Economies


 pressing. material need of the world today" were propounded, would not the overwhelming answer be fooa and that, whether it arose rom the throats of partly rationed English ana Germans. starving Belgians or the high cost of living" haunted people or the United States?
 The worlds food supply is alarmlngly short and the last report on that basic article, wheat, shows forecasted shortage in the United States alone this year of 5O,000,000 bushels. The same condition prevails as to live stock and market produce. We actually need more wheat, more oats, more rye, more corn, more cattle, more hogs, more sheep, more onions, more turnlpS and, especially in Arizona, more frijoles. How are we to get them? Encourage agrl- culture and livestock operations. But how encourge? Some one answers Stimulate those engaged/in these ope- ration by exhortation. That helps, just as pointing out any duty helps. Ad- wise them scientifically through our ! farm bureaus and agricultural col leges. That helps. Stop the waste by good marketing systems and in every other possible way. That helps, plant gardens. That helps. There is an old 1 saying, Talk is cheap but it takes money to make the mare go." That's the point FINANCE FOOD PRO- DUCTION AT LOWER RATES OF l INTEREST.
 | It is an accepted fact that the busi- ness of the primary production of food has always paid the highest going rates l of interest. Two principal reasons seem to have been responsible for this First, agricultural management has not ! been of the highest quality. Second, the producin~ plants and equipment have been decidedly individual and small, hence not widely known and, therefore limited to purely local credit It is not the contention that these two | reasons have been overcome, though it l can be said as to the first. that there | has been a marked advance in manage ment in the past fifteen years, and as l to the second, that we are making a be- ginning al q remedy in the formation of the Rural Credit system, as far as land security is concerned. If we are to adequately meet the present situation l we must go farther and faster. It will not do to work out a system with un- | limited time as an element We want l tremendous production of food stuffs 1 and we want 1t now.
 1 We might be justified in going into a little paternalism, which rightly con- sidered, is sometimes only another name for social rights, duties and re- responsibilities, and We are informed that the United States government is considering a step which might be Hk- ened to paternalism toward our new | war allies by loaning them itself three l billion dollars so as to give them the benefit of the advantageous interest rate at which it can borrow from it's own people, namely 31z per cent as against nearly 8 per cent at which Anglo French bonds are now quoted.
 Financial paternalism in agriculture might not be necessary if American fi- nanciers, whether engaged in commer- cial banking or otherwise, with whom the primary products first come into financial contact. in their various dis tricts could effect substantial reduc- tion in rates for funds used in food production. That action would be part of this great, patriotic contribution to the situation. and, in the last analysis would conform to, though perhaps working in advance of laws laid down by classical economies
 Never before in the history of the United States has the supply of loan- able funds been so great. Considering that factor alone, the interest rate should fall. Interest however, tends
 
 because increased price stimulates pro- duction and hence engenders new and additional demands for capital. But in- terest has not risen along with oul present high level of commodity prices because thef supply of lOanable funds has outstripped all demand for them The contention is that the benefit o1 the situation has not yet reached the primary agricultural producer in any large measure and that now is the time to make its effect felt by conscious concerted action at a point vital to ma tlonal and world welfare
 It is all very well to point out that increased prices for agricultural pro- > ducts will stimulate production. as they Will, but how long will it take to make the reaction felt? It is all very well to point out that financial institutions must be cautious in abnormal times but so must the producer. The Federal Reserve system largely aDrogates the necessity for gigantic reserves. A diff ference of two per cent on $1,00O will pay one quarter of the cost of an or dinary blow needed to quickly and ef- ficlently transform poorly producing sod field into one of grain on it's way to good alfalfa or other meadow A difference of two per cent on $2,000 will produce a proportional part of the cost Of heavy blow for more extensive operations, and likewise we could gc into the whole question of draft stock tractors, other machinery and the like The lowering of the interest rate which is fixed charge would be q distinct encouragement to produce more eff | ciently and quickly by means of good