Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-11-14
CORRESPONDENCE of rhe Star.

SIOUX FALLS, S. D., November 10.
In these days of movements among
the farmers Of several states to hold
their grain and thus keep it from the
market, to the detriment of the con-
sumers of the country. plan evolved
by w. H. Lyon of Sioux Falls, men,
Der of the South Dakota legislature,
for the sterilization of prices of sta
pie farm products promises to attract
widespread attention.
The members of the South Dakota
Legislature at recent special session
thought so well of the plan that they
unanimously adopted a resolution me-
morialiZing Congress to consider the
plan and enact such legislation as will
put into effect throughout the country
his plan. The memorial to Congress
also has been approved by South Da-
kota boards of county commissioners
and the directors of farm bureaus.
Congress at it's coming session will
be urged to take action on the plan.
Outlines His Plan.
Mr. Lyon declares the farm value
of the entire potato crop of the United
seed planted to produce the crop.
Seed flax was worth from IS to S.
per bushel at seeding time and the
new crop sells for about $2.75. Mr..
Lyon said recently. Seed oats were
worth from 81 to $1.1o per bushel
cents.
Farmers who have enough to
stick to the job will not endeavor to
produce a maximum yield, but viii
generally attempt to raise only what
they can produce themselves and will
not run the risk of bankruptcy by
employing high-priced help.
THE southern wheat producers a
few weeks ago declared that the
average cost Of raising bushel of
wheat is $2.77. and formed an as
ISOLATION for the purpose of obtain
ing SO per bushel. but the prices have
since dropped approximately IS cents
a bushel.
Under present conditions the ten
ants and those in financial distress
who need the highest prices are
obliged to sacrifice their products
for the lowest prices.
Prices and Business.
TN view Of these we'll known facts
it is remarkable that no attempt has
been made to stabilize the price of
farm products except during the late
war. and it is just as important that
food be produced and our people fed
in times Of peace as in times of war.
IF the prices of wool. cotton and
staple farm products were stabilized
it would promote the stability of bust
ness to a remarkable degree. If mil
lers. linseed oil makers. wool, cot
ton, oatmeal, breakfast food and
glucose manufacturers could be as
sured Of a stable price for raw mate
rails during the year. gradually in
creasing little each month to cover
carrying charges. it is self-evident
that they could eliminate the ire
mendous risks of business that now
result from price fuctuation and
nrNId MN %hf~ e.
safely and upon a smaller margin of
profit than at the present.
If farmers could be assured in ad-
vance the minimum price they would
receive for their products, they would
know how to utilize their farms and
their own ability to the best possible
advantage. Instead of dumping their
grain upon the market as soon as
threshed. for fear of lower prices,
there would be some inducement to
hold grain back until required by the
normal demands of trade.
Could Store Grain.
THE longer the farmer would re-
tain his crops, the less storage he
would have to pay and the more near
ly the guaranteed price he would re-
ceive for his products, which would
have stable value while, in his
granary and be free from fluctuation
in price.
When the farmer wishes to sell his
crop, if unable to obtain a satisfactory
price, he can store it in an elevator
or warehouse, licensed and regulated
by the federal government and take
his storage check to his local bank
for discount. The bank will know
that this storage check is practically
an obligation of the federal govern
ment. which at the specified time and
place will pay the stipulated price
So L. at
bank. therefore. will deduct interest,
for the use of the money and also for
the necessary transportation and car
rying charges, and advance the bal
ance of the guaranteed price to the
producer. Undoubtedly some prac-
teal method will be- devised whereby
the federal reserve bank can finance
the entire crop movemnt without Grip
ping local banks, as is now the case.
There can be no better security
than warehouse receipts covering
food products, that must be consumed
The guarantee of a minimum price
will automatically eliminate all
gambling. and speculation in such
products below the guaranteed price,
but will not interfere with the other
wise usual course of trade.
COmmissi0n Of Experts!
Under my proposed plan the
PRESIDENT WOuid appoint q commits
sion of experts fairly representing
not only the producing, but the con-
Stunning public. and prices would be
based upon the average cost of pro-
duction, together with a reasonab BILE
profit. The national government would
not purchase the entire crop, but
would simply guarantee a minimum
price for the surplus, il any remained
on hand at certain terminals shortly
before the new crop comes in In the
case of wool. fax, rice, sugar and
OF her nroducts which We do not o..