Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1921-12-03
s.asiIirina Agricultural Production

Business and Agriculture is the title of paper
b. T. Meredith, secretary OF agriculture in
the North American Review for October, reprint
copy of which have just received from Mr.. Mere
dih. In answering the question, What is the mat
ter with business viewed from agricultural
standpoint replies: lack of orders due to the
reduced purchasing power of the farmer" We think
that the business men, the merchants of this COM
rnunity will accept the a correct
That agriculture is fundamental is generally
agreed and 1t should receive special treatment
We mean. should given special privilege at
the expense of business-we think all thoughtful
sons viii agree. All other forms of production regu-
late themselves regulated by the law of sup
ply and demand much clothing, too many u
tomobes too many or too much of other en-
produced production lessened without
general disturbance.
II agricultural production is regulated in other
way. it too will be regulated by supply and demand
but its regulation downward inevitably results in
general disturbance of business.
Steps therefore should be taken stabilize agri-
cultural production. Mr. Meredith therefore proposes
that the government should engage 10 take the
plus production after the needs of the year have
been met; that is the surplus of the 1922 wheat
should be taken over by the government in 1928 at
price fixed planting the crop.
In the meantime farmer would 1922 crop
what he could, but he would not likely, under
severe pressure, a price which
he had been assured at the time he planted it. This
fixed price would be determined by the government
by conditions time of planting. the cost Of
production
This plan would be made easier of adoption il
people would put mind effect of the export
bug-a-boo. The exports so small in comparison
with home consumption that they may be disregarded
AT the present time the inability of European
purchase agricultural products has had
little to do with the present low prices of farm
ducts. Mr. Meredith points out the condition the
farmers in 1898 when part of their could be
laid to the lack of a foreign demand.
Mr. Meredith says:
Granted that some method had been devised to
reduce price products gradually and that
we had reduced the value of the 1920 crop but bill
lion dollars instead of five billion dollars, giving the
farmer last years crop four billion dollars
than he received the prevailing prices what would
have been the situation? There 100000 farms
in the United States upon which are engaged thlr-
teen million These farms are, in effect, $500,
600 separate manufacturing plans, needing
wire fence, tractors, trucks wind mills, homes with
all Of their equipment, clothing, Shoes lumber for
harms tile for drainage steel different
purposes. These plants do other plants do buy
equipment when they have money pay for it. Bust
ness is but exchange trade of one article for
another article of commerce The farmer trades his
wheat or his for tractor truck other
equipment and the fact that one buys his wheat and
avs for it in dollars. farmer using the money
pay for does not essentially change the
situation. VIII anyone deny that if the farmer had
four million orders to place Of a thousand dollars
each-had property in the way of agricultural pro-
duets valued at four billions of dollars than
they were valued,-he would have delayed making
these trades?
Mr. Meredith disavows purpose to supplant by
the government the agencies of business by which
these changes are made. There is a year for
operation of these agencies make these exchanges
for the crops of that year after which the govern
nt steps in and the surplus, leaving these
agencies the disposition of the crops for the
ceedins year An effect of this arrangement would
be to balance production.
This nlan Mr. Meredith makes clear is not en-
,5rl for the benefit farmer but for the bust
ness of The country. He is not sure that the farmers
,,,,,s accept the suggestion kindly having yet in
mind the fact that the minimum guaranteed price Of
wheat during the war became the maximum price
rs,- What VIII become of the surplus crop Of any
ason, NJ. Meredith says:
yy..5 the prices announced one year in advance.
,s ~.r. deemed desirable 10 curtai the production