Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-11-23
finland Farm er" Editor
Outlines His Theory on
Why Prices Are Lou

The daily papes ecrently carried
news item reporting the findings
of a committee appointed to study
the price situation in regard to agri-
cultural products. 1t seems that this
committee was appointed during a
conference of agricultural workers
held at Washington a few weeks
ago. The report blames the Fed
eral reserve banking system for the
fall in PRICES. 1t says: 1T (the
reserve system) has arbitrarily
withheld from assisting the basic
industry of this country to maintain
a level of prices that at least meets
as a matter of policy. artificially to
press down prices of commodities,
and it is particularly wrong. to be-
gin with the raw commodities, for
on the producer the heaviest bur
den of reconstruction and readjust-
ment Restriction of credits, rails
ing the rate of discount on farm
products and discontinuance of the
war finance committee are the
causes of the present situation"
Of course. this committee was ex-
pected to fix the blame somewhee
and it undoubtedly did the best it
could, It is pretty difficult to make
that the action taken by the Fed
eral Reserve banks to check specu
lation and extravaganza was a mis-
take. If any mistake was made. it
Undoubtedly legitimate dealers in
grain found less difficulty in get
ting the necessary financial aid than
any other class of people. Just how
the federal reserve banks could pro-
coed in their Plan to check reckless
prices Of agricultural products as
we'll as those of other products is
also difficult to understand: Judg-
ing by the report, the members Of
ing should have been done to stop
initiation. Probably they think it
would have been best to let things
drift until a panic occurred. Panics
wonder who would bear the burdens
Of reconstruction II not the pro-
-ducers. Finally it is our under
standing that the reserve banks
found 1t absolutely necessary to re-
strict credits in order to maintain
an adequate erserve.
Senator Capper, of Kansas. recent
~ gave to the press a statement in
which he says gambling in grain on
the Chicago board of trade is re-
course. this is "old stuff" Grain ex-
changes do not determine prices, as
any wel1-informed man knows. They
may be an evil, but if they are abol-
iShed, some other system of regu-
lating the grain trade of the coun-
try and keeping it stabilized will
have to be established.
The farmers of this country are
dismayed at the slump in prices of
farm products. Such a severe de-
cline was not expected. At present
prices may face great financial loss
and there are few indeed who will
real ize much profit from the years
work. It does seem outrageously I'M
fair that such a large share of the
losses incident to reconstruction
should fall upon the agriculture of
this country. 1t is depressing and
dlscouraging in the extreme. Farm
ers can not be blamed for feeling
bitter and disgruntled. 1t is human
believe that the low prices are the
result of deliberate manipulation up
on the part of some group Of men
or some public or private institu-
ton, and they are not wanting men
to encourage such a belief. The plain
facts in the case are that there is
not sufficient world demand for farm
products to take the large produc-
ton of this year at high prices. The
or the activities of the Chicago board
of trade, or any other institution
had about as much effect upon es-
tablishing prices of farm products as
the moon has upon the weather. Let
a few big orders for grain and meats
come from Europe and we will see
an immediate upturn of prices. Let
the demand continue and good prices
are assured. The situation is a very
serious one for farmers-indeed it
is disastrous, but there is no advant-