The Mankato free press., 1921-12-16
Secretary Wallace Discuss.
es Plight of TiIIer
FIRST ANNUAL REPORT
Purchasing Power Farm Pro.
ducts Lowest In History
United States
Associated Press Dispatch. !

washington, December 12.-Freely
and frankly discussing the present
plight of the American farmer, Secre-
tary Wallace tells the president in his
first annual report that there seems
to be good reasons for believing that
the worst is over and that we may
reasonably. hope for gradual improve
ment from now on" He adds that "a
clear recognition of the conditions as
they exist should help US 10 realize
this hope"
In large part the troubles of the
farmer today are due to world wide
conditions and the inevitable result OF
the world war, the Secretary of Agri-
culture says, adding that it is not to
be expected that by some miraculous
transformation" the period of pros
perity.
High freight rates. big crops pro-
duced in the face of high costs, un-
employment in other Industries in
in buying Of foodstuffs, and the lack
of foreign markets for the farm sur
plus are given by the Secretary as the
more immediate causes for present
conditions in agriculture. He lays
particular stress upon the lack OF
foreign markets and high freight
rates.
~ - a vi
ern civilization" he asserts, that
with such abundance here there are
millions Of people overseas suffering
for the bare necessities and other
millions starving TO death. And surely
We are sadly lacking in our under
standing of economic laws or in our
adjustment TO them when the produc-
ton Of bounteous crops grown by the
hard labor of 13,000, ,000 farmers and
farm U0rRarS and their n mi
permitted to play such large part in
paralyzing our industries and business
at home"
~ Advances in Freight Rates
Large advances in freight rates,
while bearable in time OF high prices,
Mr.. Wallace says, if continued are
bound to involve a remaking or the
American agricultural map.
The simple process OF marking up
the transportation cost a few cents 4
hundred pounds" the secretary writes,
has the same effect on the surplus
producing state as picking it up and
setting it down 100 to 800 miles far
ther from the market. Agriculture Is
depressed until the rates are lowered
or until population and industry shit
TO meet this new condition"
With the heavy consuming popula-
ton of the country massed near the
eastern coast long distances from the
producing areas, Mr.. Wallace says,
substantial advances in the transpor-
ttion costs have the effect of imposing
a differential against American pro-
ducers in favor of their competitors in
foreign lands, particularly those to
the south of this country, who have
the advantage OF cheap water trans
portation.
The agriculture secretary thinks
that when the country finally emerges
from the present condition it will find
itself at the beginning OF a new ag-
ricultural era, Pointing to the large in
crease in the country's population and
the fact that most of the easily cult
waited land has been taken up, he said
the time is not far distant when home
needs will require practically all that
American farms produce in the aver
age years.
This means" he adds, {. a more
intensive agriculture, with larger pro
duction per acre and lessened cost; If
We are to meet foreign competition
and still maintain our standard OF Iiv-
ing"
VIII Meet New Conditions
The department is planning to meet
these new conditions, Mr.. Wallace
continues, by Strengthening certain
phases OF its work, more especially
the scientific research, the applica-
ton Of the result of research to farm
practice, more -extended studies or
marketing farm crops with a view to
reducing costs, investigation of both
production and consumption at home
and abroad for the purpose of better
adjusting American production to mar
ket needs, and studies looking toward
making available to the farmer those
devices of modern business which pro
vide needed credit on easy terms and
which may help to distribute produc-
ton risks more equitably.
The amounts asked for this work
in the coming fiscal year have been
reduced to the minimum" the sec
retary says, adding that in the future
the appropriations should be increased
just as rapidly as needed. In this con-
nection, Mr.. Wallace draws attention
to the advisability of congress grant
ing permission for the combining of
the Bureaus of Markets and Crop Es-
Inmates and the Office of Farm Man
agement, into which would be merged
all the forces of the department that
are engaged in agricultural economic
work.
Matters Of National Concern
In his discussion Of present condi-
tions, Mr.. Wallace declares that the
difficulties of the farmers are a mat
ter of national concern and one that
should be given attention by every
thoughtful citizen.
I'VE must accept the cold fact" he
declares, that agricultural product
ion in adequate measure can not be
continued for any length OF time on a
basis which does not give the producer
fair price," and proceeds to show
how inadequate prices to the farmer
lessons the nations buying power
\ throwing men out of employment and
creating what he calls "a vicious cir
Gle" that it is difficult to break
Through.
Congress has aided in improving the
situation, he says, by passing at the
sspecal session legislation Of con-
,structive character that will be more
helpful than is now realized" He
points to the extension of the power
of the War Finance Corporation; the
increase in the capital Of the Federal
farm Land barks, and the bringing OF
the packers and market agencies and
the grain exchanges under the gov
sernment supervision.
Reviewing the work OF the various
bureaus OF the department, Mr.. Wal
lace says that during the past year
more improved roads were built under
the federal aid road act than during
IL