New-York tribune., 1920-10-25


would make the final cost very much
higher than the present cost of the
middleman's large unit, accumulated by
him from multitude of small units
that is to say, either we must continue
the present practice OF financing the
middleman instead of the producer
after the time of the harvest, or the
banks must set up suitable machinery
for handling the multiplicity of small
units and make an initial charge
against the producer on somewhat the
same basis as the present buyer; or
the producer must set up machinery
for accommodating the original small
units into large ones and provide for
their handling by people experienced
in business, financial and transporta-
ton operations generally.
This latter method already tried, is
taking on new impetus.
There is no essential difference be-
tween the attitude of labor in demand
ing that it be permitted to bargain col
lectively with the employer, and the
demand by organizations of producers
for cooperative marketing.
Believe Methods Unfair
Grain and cotton producers have felt
FOR years that the existing method,
whereby purchasers locally make indi-
worked to the Disadvantage of the pro-
dUcer and, as a result, in many sections
Of the Middle West and in various
communities comparatively run cleva-
tors have been established to which the
producer delivers his grain, though not
much has yet been done in this direc-
tlon by the cotton growers.
The discussion is rife among both
the grain men in the Middle West and
the cotton growers in the Southwest
for the expansion Of the cooperative
elevator and warehouse program with
cooperative marketing organizations on
" big scale.
Here and there producers of farm
products are undertaking in various
ways, under various titles and with
divers high sounding plans to set up
new or to amplify existing cooperative
marketing machinery. They are now
apparently even seriously discussing
plans which contemplate within their
general outlines the establishment of
banks and carrying on of such financial
tempted by any like organization, ex
cept, possibly, the Nonpartisan League.
Bankers Must Meet Problem
This brings to the bankers the need
for determining whether they shall
maintain an attitude of aloofness from,
and resistance to, such movements and
their resulting organizations, or wheth-
or, on the other hand, it is advisable
for banks to participate in, and, within
limits, promote, cooperative organiza-
tions to the end that bankers may at
least point out the dangers and alb
surdities Of some Of the plans now
under way, and also to the end that the
producer may have the full benefit of
a fair portion of the whole credit avail
able; this fair portion of credit allo-
Gated TO any one group, however, must
not exceed the contribution which that
group makes to the total production of
the nation.
Tendency. to Use Power
Irrespective of any evidence, state
ment or argument given for the balance
of the people Of the country and other
groups of producers necessary to the
ccuntry's welfare, there exist certain
evidences of q tendency to use tho
great economic power of these proposed
cooperative organizations to the dis
advantage Of other groups of producers
and consumers. This selfish trend may
not be conscious or intentional. yet it
exists and must be faced. At the same
time, the fact must be recognized that
SOmethlng is needed TO protect the pro-
Queer in his legitimate functions.
This, then, is simply a statement of
the situation, because, in the solving
of problem a frank statement of the
case IS a primary necessity.
In sketching roughly the machinery
and its operation, so far as it relates
to the financing of the commodities
discussed, and in giving the rough
picture of the complexities and diff,
oulties as we'll as the trend of move
mcnts related to the financing, there
is no intention Of Offering any general
specific or general panacea.
1t is obvious that there is no general
specific, but rather that individual
bankers, or bankers acting in small
groups in relatively small areas. must
determine these questions as they arise
for themselves. 1t is equally obvious
that the attitude of the bankers gen.
orally must and will be modified to
meet the choOriNp cOrNi+ior,