The Miller press. [volume] (Miller, S.D.) 190?-current, 1921-03-17

Of its plan for cooperative marketing
of grain on a nationwide scole, the
Farmers Marketing Committee OF H.
wishes TO call attention to the follow
in basic facts:s
i. Agriculture is the Nations most
fundamental industry. Upon the SIX
and one-half million food producers
OF America rests the great responsible
lity OF supplying 10000, 900 people
| with their daily food, a task which
increasing population and declining
soil fertility makes yearly more DIM
cult. H
2. Our Nationol sense of justice
must acknowledge the farmers right
to the same standards OF living that
prevail in other occupations, the some
return on invested capital that is re-
ceiyed by other Industries, the same
| compensation for labor and MONACO
ment that is paid for like skill In other
enterprises.
3. The business OF farming as con-
Quoted now and in the past does not
yield sufficient returns TO meet these
requirements. II does not yield suf-
ficient returns to restore n main
tain soil fertility, to buy tho machin-
cry and equipment necessary to the
most economical production. or to of
fer sufficient financial inducements to
keep the most ambitious boys and
girls on the farms
Investigation conducted by this COM
mittee convinces us that the funda-
mental reason for the lack of adequ-
ate profits in farming Is a faulty sys-
tenn OF marketing farm products. All
other great industries merchandise
their products under their own direc-
ton They are fully informed as to
supply and demand. They suit distri-
button to demand, thereby, maintain
ing a foirly stable market price, with
out daily fluctuations, and with only
very gradual seasonal fluctuations.
The farmer, on the other hand, ships
his grain on the markets without re-
gard to demand. u
Grain prices in the United States
are determined in a few centers of
distribution known as terminol mar
kets. The market places at these ter
minals are owned, operated and main
tanned by privote closed corporations
or associations known as grain ex-
changes or Boards of Trade. Upon
examination of the rules governing
these associations and upon question
ing their officers we have learned that
elevator companies, distributing earn
ings on basis of patronage, cannot
become members OF these exchanges.
The effect Of this is the exclusion of
such farmer cooperative grain dealers
from the terminal grain markets of
our country.
The grain exchanges furnish the fac
ilities by which speculation in grain
and its product Is carried on to an
extent that almost stoggers all human
comprehension We have, for instance
been informed from reliable estimates
that the wheat sold each year in the
wheat pit OF the Chicogo Board of
Trade is three times the entire pro-
duction of the world. The total grain
sold on the Chicago Board of Trade
annually Is approximately fifty-one
times the omount of grain actually
shipped to the Chicago market, and
this market dominates all the markets
of the country.
The inevitable results of this unlim.
manipulation OF prices. Second. great
Losses to producers and the public
generally.
The credit facilities of the country
are designed to meet the needs OF
business, with its quick turnover, and
os recent experience has demontrated,
do not adequately take care of the
farmers needs. II Is often difficult for
the farmer to secure sufficient credit
to permit the orderly marketing OF
grain, fitting availoble supply to con-
sumptive demand. this resulting in
| wide fiuctuation in prices, to the dis
advantage of both producer and con-
sumner. The consumers price is based
on the high point of the year, while
tho producer sells most of the grain
at the low point.
~ ohAy uuNquutS fChtSuy LUZ Tic
conditions set forth, in the judgement
of the Committee. Is for farmers to
enter extensively into the business OF
grain distribution merchandising grain
as the products Of other industries are
merchanised. We have adopted a plan
for cooperative grain marketing and
hnancning for submission to our var-
ious organizations, which we believe
will accomplish the desired results.
We believe that the public will be
greotly benefited by more established
prices for grain and 1t products, and
we know that farm investments and
the farmers vocation will be made far
more sound ond secure thereby. We
note with satisfaction and great pride
the many benefits that have been
brought to and producers
Of grain by the farmer cooperative
elevator companies of our country, the
number OF which is nov over 1000.
We have taken the farmer cooperative
institutions as the basic unit upon
which to construct u marketing sys-
tenn.
We deem the practice known os
short selling of grain and other farm
n crime and hava askad Con