Milford chronicle., 1920-07-09
ADMINISTRATION FOE
OF FARMERS

Washington. July 9-That the Will
son Administration has discouraged
/ agricultural production is the
charge made by the Republican Pub
licity Association in a statement is
sued today through its president,
Hon. Jonathan Bourne, Jr,, discuss
ing that plank of the Republican
platform which promises:
"'An end to price fixing and ill
considered Efforts arbitrarily to re-
duce prices of farm products
which invariably result to the dis
advantage of both the producer and
consumer
"As every farmer knows" the
statement continues. practically ev-
cry move of the Wilson Administra-
ton during the war relative to ag-
ricultural products and prices tend
ed to discourage production. For in
stance, Congress passed law guar
anteeing not less than a certain price
for wheat. There was a universal un-
derstanding that this was minimum
price guaranteed by the Government
to insure the farmers against very
great loss. The Wilson Administration
however. made this minimum price
the maximum price through the Ii
censing system which gave it
practical monopoly of the marketing
OF grain. The result was that in al
most every state there were farmers
who produced and sold grain at less
than the cost of production. OF
fhnrn NEhn made D
money at the price fixed by the Ad- I
but the records show
that there were also thousands of far
mers who sold their grain at less
than the cost of production.
"The Republican platform is cor
rect in the assertion that price fixing
and arbitrary reduction of prices of
farm products result to the disad-
of both the producer and
consumer. The consumer may reap a :
benefit from the reduction
If prices paid to agricultural produc-
RS, but such reduction of prices :
must inevitably result in a diminu- :
ion of production with consequent
of supply and the ultimate
Increase in price due to a demand :
which can not be filled Far better
7Ould il be for the consumer if he :
aid an excessive price in the be- :
inning and encouraged production
Thich would bring about an adequate :
upply and reduce the price through :
among the producers. :
In other lines of industry than ag- :
culture the Administration pursued :
course opposite to that which it fol- :
)Wed in determining the price of :
lrm products. In a large proportion :
the contracts for the manufacture :
various commodities needed by the :
OVernment during the war, from :
unitions to cantOnments and ships, :
cost-plus plan of determining the :
was adopted Thus the :
'oducer of those commodities was =
ven absolute assurance that he =
'uld sustain no loss, for in any event =
e cost of production was guaran- =
ed to him and by adding to that a =
rtain per cent of profit the Govern =
ent encouraged him to make his =
st of production as high as prac- =
cable. The Administration took over =
e railroads and guaranteed a re- =
IN on the property; it took over a =
rye number of industrial plants un- =
T similar guaranty. II raised the =
ages of railroad employees ana by
) contract policies virtually raised =
e wages of all city employees. At =
e same time that it was doing this =
was restricting the price that =
uld be obtained by the farmers for =
5 food products and making it more =
hcult for him to obtain help to =
ant cultivate and harvest his =
Dp.
The ony instance in which the Ad- =
nistration has by its act aided the =
'mer in securing an increased price =
= his products was in the case of =
uisiana sugar. Even in that in =
nee the ruling of the Department =
Justice was made in such a way =
It it not only enabled the Louisiana =
,ducer to get a higher price, but it =
lctically enabled every owner of =
gar wherever produced or at what =
II cost to exact the same high price Ill
ich the Department fixed for the
lisiana product. -