The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-12-04
TO AID MARKETS
Revival of War Finance COrpO-
ration Is Urged.
J. C. MOhIer Suggests Remedy
for Conditions.
EUROPE NEEDS OUR PRODUCTS
Agriculture To Be First to Re-
cover, He Says.
Must Exercise Patience and
Be Ready.
EUROPE NEEDS OUR PRODUCTS

Revival of the United States War
Finance corporation to extend credits
to Europe so as to bolster up the world
market for wheat and other farm
products is the chief remedy for pres
ent unsatisfactory market conditions,
in the opinion of J. c. Mohler. secre-
tary of the Kansas board of agrieul-
ture.
Europe is in great need Of our
products but is sorely handicapped by
lack OF funds with which to purchase
and this condition is accentuated Dy
the prevailing rates Of exchange" said
Secretary Mohler.
As the only chance for the farmer
to make profit on corn at its present
low market price, Mr.. Mohler suggests
feeding it to livestock.
To Recover Rapidly.
Taking an optimistic view Of the
situation, Mr. Mohler declared tnat
aItho agriculture is first to feel the
effect OF price readjustment, it nat
uraliy will be first to recover ana VIII
be on sound basis when other indus
tries are going thru similar throes IN
returning to normal" conditions.
We must exercise patience. keep
our feet on the ground. stand steady
and employ every bit of horse sense
We possess. and out of this turmoil we
will undoubtedly emerge into a better
and brighter day is the philosophy
which he offers.
Secretary Mothers comprehensive
view Of the farming situation is con-
tanned in answer to a letter from W.
y. Zieber, of Pawnee Rock. Mr.. lie
her propounded the question, w hat
90 you think of the wheat price fu-
ture2r Mr. Mohler in replying said
in part:
1t Is All a Guess.
My guess is not bit better than
yours and maybe not as good
wouldn't want anyone to follow my
ideas about it for the reason that he
might lose money in doing so. Inc
prospect for the future price OF wheat
does not look bright to me Tor tne
reason that EurOpe's finances are N
bad condition and Europe IS the cnlel
customed for our expOrtable surplus
our own nillers even have been buy
ing rather sparingly because OF the I'M
stable markets
Moreover. from the best informa-
ton we have received, the prosper
for the wheat crops of Australia and
Argentina are very good and these Two
countries will harvest their growing
crops in January next. OF course our
own wheat must compete in the
worlds market. If the present crop
of Australia and Argentina turn out
as we'll as they are promising, these
countries will produce S.OU0,OuO
bushels as against 46,o0O.OOO busneis
a year ago. according 10 DATA pun
lished by the United States depart
ment of agriculture If the prospec-
tive January yield is realized, these
countries will probably have an ex-
portable surplus of 14o,VOo;uVV
bushels. Altogether, from the data
available. it appears that the world
wheat production is sufficient to meet
the worlds needs, altho the european
demand. as I have stated. is affected
by its limited purchasing power
y Serious situation.
Because of the drastic drop in
prices OF farm products. the agricui-
tural industry is facing serious stu
alton. The only practical method OF
relief that I can see would be to re-
vive the United States war finance
corporation, and thru Il extend credit
TO Europe It is believed this would
result in stabilizing markets. 1mproV-
ing rates Of exchange. and bring better
returns to the farmer thru more ex-
tenslve buying of Europe. Purchas-
ing according to her requirements
would not only increase demand and
strengthen prices. but result in free
movement of our commodities and
thru their liquidation support bust
ness all along the line Europe IS in
great need of our products but is
sorely handicapped by lack of funds
with which to purchase. If Europe
could take over our exportable sur
plus OF food stuffs at fair prices, il
would ease off our money market to
such extent perhaps as would enable
our farmers to negotiate loans on cat
tie to fatten with uor abundance of
1Ow-priced corn and forage. 1t seems
to me the only chance for profit on
corn lies in feeding it to livestock.
But. the buying of feeders now offered
at low prices is limited because of
lack of available credit. believe the
revival of the war finance corporation
might afford relief, and I understand
that congress at its coming session in
Decent will consider the advisable
ity of such action.
Conditions are so badly disturbed
that no one can foretell what the flu
ture may bring forth. So far as cost
OF product is concerned. the price of
wheat ought to be higher. With re-
spect to supply and demand it ought
TO be higher. and probably would be If
Europe's finances were such as would
permit her to buy according to her
needs, but during these disturbed
times Of readjustment following the
great catastrophe of the world war, it
appears that practically all business
enterprises are bound to suffer losses
in our return to normal. While agrf-
culture has been hit first. 1 am In
hopes it may be the first to recover
j have heard many farmers express
the view that they could stand their
losses with good grace if the articles
they must buy showed relatively as
much decline in prices as the farmers
products and If the great mass of con-
sumers were benefiting proportion
ately to the drop of raw materials in
the markets.
"A return to normal production in
business is the great nrDbIeun 0rf