The Washington herald., 1921-07-31


at a price not including a fair rate
of interest on investment to hold up
the total of farm production.
A rough comparison Of capital In
vestment in agriculture with the
manufacturing. mining and railway
INDUSTRIES, based on the 1910 census
appears as follows:
Agriculture ....... 50, ,o00, 900 900 Joet
Manufacturers ....... 1900 0O0. 600 2Sqs
Railways ........... 1s.O00. 600. 900 23R
Mines ............... 1000, 900 80
OF this capital the. farm owner
had approximately 80 per cent of his
own Individual capital in his bust
ness. while in the other lines, out
standing stocks, bonds and other
Indebtedness represented practically
100 per cent of the total. In addi-
ton to this a large percentage OF
farmers have provided their own
operating capital without using
credit except for brief periods when
the crops were being .marketed.
While IL has been the great in
crease in values of farm production
that has multiplied the farmers
credit needs during the recent year.
OF high prices. the growing total Of
value through recent decades has
been steadily increasing the need
for more. liquid capital, and this
need will not disappear by any
means when prewar prices are
reached on all farm products. The
cost OF production of farm productk
is steadily increasing, and thu.
alone develops the need for more
liquid capital. The investment In
farm machinery during the past de-
cade has increased Is4 per cent, and
while some OF this is due to the
nigh prices of machinery in the CEN
sus year 1920, most or II must ne
attributed to the larger amount OF
machinery required on individual
farms for current operation.
The appeal for additional capital
IN agriculture has peen expressec
sy farmers in the call for improved
rural credits, first in the form of
mortgage loans from the sale of
bonds This is provided for through
the land banks and has brought IN
considerable volume of outside
capital, but not in PROPORTION to the
general increase in value The pres
eht agitation for greater credit for
marketing. the result of the high
cost OF marketing during the mas,
two years. represents secopo
method by which agriculture is TO
be assisted by more money in the
form of operating capital.
The recent suggestions for Ier,.-
iation, such as the Norris bill, and
others, described as emergency nro.
posals. are really expressions Of the
need
OF supply Of funds for farm op.ra-
ton and marketing. As yetC no
plan for providing capital for pure-
ly protective purposes has been
fully worked out. except insofar as
iaho bank loans are used for tni.
purpose. The recent shifting from
the Norris bill plan to an extension
or the services Of the War Finance
corporation shows a disposition by
the government to treat the whole
matter as a temporary ICED rather
than one for which a permanent
remedy is required.
The main problem which the gov
ernment faces is that of deciding
whether Federal aid shall be pro-
Vided to take care OF the farm sur
plus which safeguards the nations
food supply or whether through
legislation favorable 10 cooperative
organizations among farmers ther-
selves the producers will be encour-
aged TO organize their own cor.
porations. both marketing and A.
nancial. to carry and marker the
surplus.
There is feeling among farmers
that Congress must settle this oues-
tion one way or the other at an
early date IL agricultural proour-
tion is not to suffer because Of can
ital needs for production and mar
keting. The cooperative moyeme1,
has great strength and is growing
rapidly. and with clear definitions
or its held under the law the farm
ers are prepared to continue TO carr~
the greater part of the load NJ A.
nancIng their industry as they have
dohe In the past. II the fear a.
monopoly so apparent in some
quarters. is to prevent the enac,-
ment of legislation to define the
neId or agricultural co-operstion.
thereby discouraging farm organi-
zation, then the only other altern,-
tive so far proposed is government
organization of a method Of carry
ing the surplus
The need for a cleancut nationa,
policy on this question has been an
parent for several years ana ~.
present depression and return TO
pre"ar price levels has not re-
moved 1t. 1t is Of greater import
ahce TO the nation which needs an
ABUNDANT food supply. than IL is TO
the individual farmer who may be
oenehtted more by a curtailment Of