Evening star., 1921-05-29
POOR CROP PROFIT.
EAR'SPRED|CT|ON
BY FARM EXPERT
Lucky to Get S Gents an
Hour, Says H. A. Wallace
to Money League.

Farmers Of the United States dnr-
ing the next year will be lucky +"
realize cents an hour for their
labor.
A gradual Improvement in busi-
ness conditions is to be expected dur
ing the next eighteen months in the
cities. but the farmer who has ex-
hausted his savings from wartime
prosperity will face a desperate sit
uation.
These predictions were made hv
II. a. Wallace. son of the Secretary
of Agriculture and editor OF Wal
lace's Farmer in an address delivered
at the Raleigh Hotel yesterday aft
ernoon before the newly formed sta
Bile Money League.
Mr. Wallace indorsed the stable
dollar plan OF Prof. Irving Fisher Of
Yale University. who yesterday was
elected a member Of the executive
committee OF the league. He expressed
the opinion it would gain the favor
of the farmers.
Attack nsOund Theories.
Mr.. Wallace. Representative Luce
of Massachusetts and other speakers
all emphasized the danger To the
country of demagoGues seIzing upon
the present situation OF discomfort to
popuiarize unsound economic theories.
They commended the plan of the
league 10 wage a campaign OF educs
tion. designed to bring about the
establishment of a stable currency.
Robert ID. Kent. president OF the
Merchants Bank of Passaic, \. j..
proposed the characterization OF gold.
defining the dollar in terms OF A com
posite unit of commodities chasen az
standard. and making ii eXchaneeable
for warehoused and proportionedIag-
gregates of these commodities.
Prof. Fisher discussed the advan-
tages to the banker of stabilization
Suggestions advanced by the speak
ers will be considered by the execu-
tive committee. which proposes 10
canvass the country'S economic ills
gram for relief which viii be advo-
Gated actively in every state.
Analyses Economic Situation.
Representative Luce of Massachu-
setts gave an analysis of the coun-
try's present economic situation. he
spoke of the constant hammerinC for
class legislation to which Congress il
subjected. mentioning that one farm
ers' organization now is engaged IN
raising a fund of S15,000.o00 with
which to advocate legislation OF par
ticular benefit to them. This organ
ization's representative in Washinsnpn
he said, is paid a salary of $4,000 n
year.
He said railroad employees wave the
menace of strike before the country
in order to maintain the advantages
they gained during the war. and that
the struggle of each group of citizens
engaged in particular pursuit is to
| hold what is derived from the abnor-
NAL war situation
The problem of adjusting the ma
tion's economic fabric is coming to
the fore Representative Luce con-
tinued the greatest issue in
politics. and the next campaign may
| be fought on the money question.
| 1t would be well, he stated. for
the country to consider whether it
wishes to eXtinguish its war debt
| quickly or over an extended period.
| for if deflation continues. he pointed
! out. the burden of paying the debt
will be greater as the time Of pay
ment is postponed.
Representative Luce said there are
four million people in the country
now who are not getting one cent
an hour for their labor, He pre-
dicted Congress would not institute
any monetary reforms at this session.
F; HIS advice to the league was that. in
| fstead of launching its campaign in
the direction of the Capitol. it should
| organize the intellect of the coun-
/ try and SO shape public opinion that
Congress would readily respond to
demand for sound and constructive
legislation.
characterization of Gold.
Proably the most radical suggestion
that went before the league was that
advanced by President Kent of the
Passaic, y. j.. Merchants Bank. who
was elected vice president of the
organization. This was the proposal
for demonetiZing gold.
1t is part of the plan TO estab-
| iish government warehouses and de-
posit in them iron, coal. cloth. wheat
! leather and similar commodities sus-
ceptible of storage without undue de-
terioration within limited period
! According to Mr.. Kent. there are
strong movements abroad al the pres
ent time to establish such warehouses
in order to take out of the hands OF
certain classes of middemen the control
and major profits OF vital products.
The number of commodities select
ed should be small enough to keep
the scheme simple said the speaker
1T should be large enough to guard
against any violent effect upon the
value of the aggregate due to a fall
TIRE in the crop. such as cotton. or 10
crop failures in a geographical sec
tion. such as readily imaginab BILE
case in which the south might have
a very bad year in cotton. tobacco and
grain.
"A suitable composite unit should be
constructed. perhaps with reference to
the average consumption Of a normal
family for year. certificate should
be issued upon the deposit OF due
proportions Of the chosen commodi-
ties. The dollar should then be de-
fined in terms Of the unit aggregate
of these commodities and OF fractions
OF the unit.
THE fluctuations OF the Wade OF the
dollar would necessarily pe very
small. and that Is what We set out to
accomplish. Any given commodity,
service or right would continue tn
vary in response to the law of supply
and demand and to any other economic
law which should govern II"
In explaining his own stable-dollar
plan, Prof. Fisher said it's purpose is
to counteract any tendency Of gold
to depreciate by increasing the gold
content OF the dollar We know"
he said. such procedure would
actually work on the same principle
that the price levels OF Mexico and
the United States are inversely pro-
portional to the weights OF the gold
dollars in the two countries,