South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-11-21
AGRICULTURE

Farm prices seem unnaturaily
low. measured not simply 10y cost
az production. but by other commod-
ity prices. They are depressed by "a
remarkable coincidence of factors.
The causes are partly psychological
Pessirnism is contagious. The whole
Americ people is in the process
OF going from one extreme OF prices
20 another A rebound in the prices
Of foodstuffs is seemingly inevitable.
They viii seek "a level in harm ony
with the prices Of other cOmmodi-
ties. This much Is certain. Either
prices at retail are coming down or
farm prices are going up, whatever
rnay be said Of the farmers inabH-
ity 20 TX a price upon his crop.
While the farmer now receives
fewer dollars for a load Of wheat,
he is finding that each dollar viii
buy .nore-not more Of all things
but a little more OF some things. He
will suffer no real loss IL the prices
for articles ne buys decline IN cor
respondence with the prices Of ar
ticles he sells The farmer Is too
hard headed 20 reckon income and
profit by the number of dollars
which pass through his hands and TO
delight ga the mere superabundance
OF money without reference 10 its
buying power.
Wheat exports continue very large
and for the past five months run APP
proXimately 10000. 600 bushels above
she like period last year. The ques-
tion now Is. how long can the farm
or hold his grain2 Financial inter
hrf mr. - q
and support ~ Rrudgingly To pro-
vide credit facilities the American
Farm Bureau federation has made "a
number OF proposals: First, the
granting Of credit 20 Germany and
Austria equal 10 the funds still held
by the alien property custodian after
payment Of all just claims, second,
restoration OF the War Finance cor
pOration. third. amendment of the
Federal Reserve act giving the re-
serve board power 20 classify loans
and vary rates. according primary
production a prior claim: fourth.
amendment OF the Farm Loan act
giving the Farm Loan board author
ity TO issue and sell on the open
market or 20 discount through the
federal reserve system securities
based on warehouse receipts. South
crn bankers are making progress in
the formation Of "a giant export cor
poratiOn 90 finance the sale OF cot
ton abroad. This corporation pre-
SCENTS an admirable solution, or par
tial solution, Of the problem as IL
affects the southern cotton grower
George Il. Hampton. acting for the
Farmers National council, has ad-
dressed an appeal TO six national
farm organizations requesting their
aid la establishing government own
ership and operation of the rail-
roads. in making credit "as cheap
and available 20 the farmer as to
any other equally responsible in
dustry' I'm passing a revenue meas
ure TO permit prompt payment Of
tho war debt by taxes on estate,
incomes. excess profits, the value of
land and other natural resources
held for speculation. and a rapidly
pdogressive tax on all property with
an exemption OF $4,000" Hampton
also seeks repeal of the Jones ship
ping act and retention of the mer-
chant marine by the people.
These semi-radical proposals are
"A direct challenge to the organiza-
tions which represent the main body
Of agricultural opinion in America.
They call to mind the labor pro-
gram of this and other countries.
All farm organizations will favor
the provision of adequate credit ia
cilities for agricultural producers
but into the maZes Of government
ownership and operation of two
great public utilities the more con-
servative refuse TO enter.