The Lamar register., 1920-07-21
WASHINGTON NOTES
Administration Foe of Farmers

/
AS every farmer knows, practically
every move of the Wilson administra-
ton during the war relative to agri-
cultural products and prices tended to
discourage production. For instance,
Congress passed law guaranteeing
not less than certain price for wheat.
There was a universal understanding
that this was a minimum price guar
anteed by the Government to insure
the farmer against very great loss.
The Wilson Administration, however,
made this minimum price the maxi
mum price through the licensing sys-
tenn which gave it practical monopo-
ly of the marketing of grain. The
result was that in almost every State
there were farmers who produced and
sold grain at less than the cost of
production. Of course, there were
many who made money at the price
fixed by the Administration, but the
records show that there were also
thousands of farmers who sold their
grain at less than the cost of produc-
ton.
The Republican platform is correct
in the assertion that price fixing and
arbitrary reduction of prices of farm
products result to the disadvantage of
both the producer and consumer. The
consumer may reap a temporary bene-
fit from the reduction of prices paid
to agricultural producers, but such re-
duction of prices must inevitably re-
suit in diminution of production with
consequent lessening of supply and the
ultimate increase in price due to a de-
mand which can not be filled. Far
better would it be for the consumer
If he paid an excessive price in the
beginning and encouraged production
which would bring about an adequate
supply and reduce the price through
competition among the producers.
In other lines of industry than agri-
culture the Administration pursued a
course opposite to that which it fol-
lowed in determining the price of farm
products. In large proportion of the
contracts for the manufacture Of vari-
GUS commodities needed by the Gov
eminent during the war, from muni-
tions to cantonments and ships, cost
plus plan of determining the compen-
sation was adopted. Thus the produc-
er of those commodities was given
absolute assurance that he could sus-
tain no loss, for in any event the cost
Of production was guaranteed to him
and by adding to that a certain per
cent of profit the Government en-
couraged him to make his cost Of pro-
duction as high as practicable. The
Administration took over the railroads
and guaranteed n return on the prop
erty; it took over a large number Of
industrial plants under a similar guar
anty. 1t raised the wages of railroad
employees and by its contract policies
virtually raised the wages of all city
employees. At the same time that it
was doing this, it was restricting he
price that could be obtained by the
farmer for his food products and max
ing it more difficult for him to obtain
help to plant, cultivate, and harvest
his cropA
The only instance in which the Ad-
ministration has by its acts aided the
farmer in securing an increased price
for his products was in the case Of
Louisiana sugar. Even in that instnace
the ruling of the Department of jus
tice was made in such a way that it
not only enabled the Louisiana pro
ducer to get a higher price but it
practically enabled every owner of su-
gar wherever produced or at whatever
cost to exaxt the same high price
which the Department fixed for Il Q
Louisiana product.