The Washington times., 1920-10-18
by HOMER JOSEPH DODGE.

The battle OF the high cost of living
Is being fought out In Washington.
II Is the most decisive struggle which
yet has taken place between the
interests of the consumer on the one
hand and of the producer on the
other. Indications are that the con-
sumer will win.
Under the auspices OF the National
Board of Farm Organizations a series
of conferences has been going on here
for the last few days. Producers
from all sections of the country have
been here in an effort to arrange
cial accommodation which will en-
able them to hold the new crop until
higher prices develop. This is one of
the sides in the struggle. 1t is the
side fighting TO keep the cost of liv-
ing up.
On the other side are ranged the
Federal Reserve Board and the
treasury Department, the two great
uthorities having a profound in
'ence on credit conditions. They are
hting the battle of the great con-
ming public. opposing the wishes
= the producers in the belief that it
would be unpatriotic for any Govern
ment agency to take any steps which
would keep the cost of living on a
high level.
FARMER VS.. WAGE GARNER.
Further, the struggle may be re-
garded as one between farmers on
the one hand and the wage earners
and salaried people who live in cities
on the other.
For the, last ten years prices have
been rising. At the outbreak of the
war in 1914, the rise accelerated and
when, in 1917. the United States en-
49,
ward even faster. Even after the
arnisttice prices continued to ascend.
Last spring they took a temporary
slump and last summer and early
this fall began to go down in ear
nest.
Producers OF farm products have
been behefitting by the high prices.
While they have not obtained a full
share of the high retail prices paid
by the consumers for food and cloth
ing. because of the avarice of the mid
dleman, the American farmer has been
getting, \during the last ten years,
progressively better and better prices.
Cotton which sold for 6 cents in 1914
has been up around 40 and 80 cents
and even higher Tobacco which sold
for IL cents has been up to so cents
and 81 pound. The Government
guaranteed a price of s226 on wheat
when only a little while ago IL sold
for 81 bushei. The same story is
told all down the line. The farmer
has made much money out of the
period of high prices. The consumer
has paid those prices and has been
waiting with what patience he could
muster for a turn in the tide.
| FARMER SHES AT LOSSES.
The crop miracle of 1920-bumper
crops nearly everywhere excepting
for cotton in the SOUTH b. ought
about the Inevitable decrease In
prices. 1t Is sweeping the coun-
try, anad the wage-earning and sal
aried consumer is on the threshold
of a new period in which he nay buy
food and clothing at something ap-
preaching the old pre-war rates.
The plan OF the farmers, which they
have been hoping to pat into effect as
a result OF the conferences which have
been going on here this week, was to
| arrange for borrowed money. through
the Federal Reserve banking system,
| the Treasury, or the defnnct wartime
| war Finance Corporation, which
would enable them to hold their crops
off the market until the price decline
should be checked and a shortag,
| should develop which would bring Of
| fcrs back TO the high figures they de-
sire. To effect this they have brought
political and business pressure of the
strongest sort to bear on the Federal
Reserve Board and the Treasury.
TAKES FIRM STAND.
But these agencies OF the Govern
| ment so far have stood out firmly
against the attacks of the would-be
crop hoarders. Gov w. p. G. Hard
ing, OF the Federal Reserve Board,
explained TO the farmers that no man
and no board in the world Is big
enough to affect the laws OF supply
and demand or to interfere with great
| economic movements. He compared
the present situation with the ola
legend of King Canute and the waves.
He recalled to the farmers how
Canute. sitting on the shore, saw the
tide coming in. Conscious OF bis
kingliness, he held up his scepter, re-
buked the waves and told them to re-
code. For some reason, the tide kept
coming in. when his feet began to
get wet, old Canute r"treates inland
Governor Harding said the board or
the farmers, II they attempted TO stay
the Inevitable downward trend OF
prlces, would find themselves In tho
same position as King Canute.
The farmers are 10th to recognize
tbis fect. They have mustered to their
4Ide big men who are assisting them
In their conferences with the financial
! ofecials. Senators Hoke Smith OF
Georgia. Smith or South Carolina, Har.
rIs OF Georgia and other prominent
ptntesmen and politicians are doing
their best to induce the board and
the Treasury TO authorize large loans
10 farmers 70 carry their crops over
'he period OF depressed prices.
The farmers have put up their story
I'm very convincing manner. They
havc shown how " haH cost them
more 60 produce some of their crops
\