Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-11-12
\ Problem in Reimbursement

( w tnc lace OIL their balance sheets, Viz
~ ginia and Carolina farmers proclaim
that present prices OF tobacco do not cover
their cost OF production. and they are
threatened with heavy monetary loss, and
IN many cases utter ruin. In this common
cXigency they have formed an association,
now in session, two objects OF which are
the holding of the present crop for higher
prices and a material curtaimcnt Of next
years planting. Both objects arc legiti-
mate and should prove effective in the
growers interest although they will result
in the maintenance of the manufactured
product at top prices, burden that the
consumer must shoulder.
The public is interested in the farmers
fight for reasonable profit on his crop.
IL does not want him to sell at loss. It is
possible, however, that certain factors en-
tcring into his estimated cost of production
do not properly belong there. Let us see
The farmer insists that no must have sac
for his bright tobacco or lose money BE-
fore the war, which sent prices soaring to
$50, the farmer made reasonable profit
and was satisfied with SIS. That was con-
sidered good figure on the Virginia and
Carolina markets. Then came tho war and
the figures went skyward. So also did the
cost of labor and every other item OF pro-
duction expense. But the farmer made
more money than no over had dreamed of
making. The inevitable result was that he
changed his mode of living. Tractors and
automobiles took the place of tho lowly
mule and the steel-tired buggy Today tho
tobacco farmer is the best dressed OF all the
men who come about the local markets
His whole scale of living has assembled be-
cause Of his affluence. attributable to the
war prices that he must have known could
not continue. Maintenance Of that scale
or living now Is charged against his cost
of production and naturally present prices
leave deficit in his bank account Per-
haps if he would consent to general
lowering OF his living expenses, eliminate
certain luXnries, justified during the war
but easily dispensablc now, he would find
his cost of production would come nearer
n reasonable level and give him fair mar
gin of profit even at the present market
The tobacco farmer in common with all
the rest OF MS, must realize that the silk
SHIRT era has passed, that fancy prices are
Impossible, and we must get down again
10 the brass-tack essentials
Bright tobacco figures are ascending
slowly. They are now around S23 to S25
this early in tho season with tho prospect
they will go as high as $27 TO $40. but no
higher. If the farmers actual cost OF pro-
duction is around S36, they insist, then
they will have to pocket tho seasons loss
standards that will prevent its repetition
next year. Even this year they can give,
themselves q Iucasure OF protection by mar
koting their holdings with less haste. With
tobacco jammtng the warehouses. and the
buyers. because OF the strain in the money
Market, unable to handle more than fixed
amount daily, each glut initiates against
higher prices to the producers. Let the
farmers generally market slowly and in
quantities only sufficient to their Immediate
financial requirements. and an improvement
is almost certain 70 be noted.
Cnrtailmcn, OF next years crop perhaps
would be a blessing to the farmer and to
the country itself. The one-crop craze has
been the curse OF the South. 4 wider diver
sty would make it scif-supporting and nut
money in its pocket. The Times Dis
patch has preached this doctrine for years.
but the farmers have been slow 10 accept
it. Let them curtail the tobacco next year
put their acres thus made available in grass.
wheat. corn, or other staples, and they will
have less cause to worry when tobacco
prices slump. II is condition that the
farmer faces, not theory OF high prices
artitcially forced down. and he must meet
il sane!y and couragcously.
Argentine Congress has its little block OF
obstinate Senator's who have obstructed all
administration measures. Imitation, even
OF the United States, can he carried too far
II will not be necessary to rename babies
christencd James" before November 9.
But what If it had been Gamaliel who lost?