The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1920-10-07
GOVERNOR HARDING ON
FARM MARKETING

SoiiC6Ct WV AS IN
tracts below from an address Of Hon
w. P. Harding, governor Of the Fed
eral Reserve Bank, should be Of in
terest and encouragement to South
Carolina farmers.
Speaking for myself personally,
desire to say, however, that l am q
firm believer in gradual and orderly
methods of marketing our great agri-
cultural staples. Agriculture Is the
most important Of all industries, fol
upon its fruit depends the lives OF
those engaged in all other industries
The farmer is great consumer OF
manufactured products and anything
that effects his buying power Is soon
reflected in the business Of the mer-
chant and the manufacturer. While
the individual farmer may be just as
we'll off with small production and
high prices, the mass OF the popula-
ton is far better OF with full pro-
duction and moderate prices. But
farming as a business must be re-
munerative or production will lang
uish. 1t is, therefore, in portant that
the efforts Of the farmer be supported
and stimulated, that he be aided in
preserving the full measure Of his
harvest and that he be afforded an
opportunity of marketing his pro-
ducts on terms sufficiently profitable
to warrant his staying in the business
Of farming.
Great staple crops, the production
of which extends over a period OF
several months, must meet the re-
quirements Of consumption for fall
year and in order to prevent POSI-
bility Of shortage 1t is desirable that
there be q reasonable surplus held
over from one crop pending the mar
keting Of the next. The gradual and
orderly marketing of our great sta
pie crops is, therefore, matter OF
importance both to producers and
consumers. The dumping upon the
market within short period OF time
of a large part of crop, consump-
ton of which extends throughout the
year, means not only loss to the
producers, Otter to those who can
least afford 1t, but involves also a
great strain upon our transportation
facilities and upon the banks in pro-
viding the funds necessary for large
purchases in advance of actual re-
quirements for consumption. Dump
ing of farm products promotes spec
ulation and usually results in higher
prices to the ultimate consumer.
Farm products, however, should not
be boarded or held back from the
market by use Of credit merely in
the hope of forcing prices up to an
artificial level. 1t is estimated by
some that the value of this years
staple crops will be around s22,000,-
100000, and it is manifestly impos-
ible for any banking system to pro-
vide funds to withhold these staples
entirely from the market. There is
no occasion to discuss the questions
of public policy involved for it is
clear that the volume Of our great
staple crops is so large and the value
so enormous, that any efforts to va
porize them by means Of bank credits
WOulu luSNlldUiy lCouiI III uioaotSA
by the operation of economic law. But
/ think that all reasonable assistance
should be given producers to enable
them to market their crops in an or
derly way provided they are willing
to sell enough to meet current re-
quirements and that consumers
should concede to the farmer reason
able profits in order that future pro-
duction may be adequate.
Open Market Needed
What is needed is an open market
in which the law of supply and de-
mand is given free play and in which
buyer and seller may meet on equal
terms. Theoretically at least it is
possible, if adequate warehousing ia
cilities are provided, for the farmer
to obtain the benefit of the average
price for the year without any in
crease in cost to the consumer and
with lessened strain upon transpor-
tation lines and banks by distribut-
ing the marketing process over rea-
sonable period"