, 1922-12-08
WALLACE SEE
IMPROVEMENT IN
FARM SITUATION
Disadvantages Not All
Wiped Out, However
Secretary Says

farmers. comprising about sne-thirt
q the oOuntry's population, finl
themselves. Notwithstanding theli
hard work and large production thi,
year. SAN hborinE under a ser4ou,
~disadvantAge Of prices. secrefa-y
wallace Of h department of agri
culture told President Harding and
congress In his annual report.
There Il food In superabuncance.'
AR. Wallace said. and this contrib
utes TO thu prosperity OF business and
industry for a kline. but the made.
quate return which the farmer is re
ceivfnE. and has three years. newt.
ably must result IN readjustments In
h number Of people on the farms
and IN the cities. which wall not be
fer the continuing good OF the ma
ton"
Thars has been n greatly aecsler.
atet movemeut OF farmers, and e.
pecially farmers rons from the farms
20 the citiea and Industrial centers,
h secretary reported. declaring
that bess estimates "lndicate that
during July. August and ssptember
twice as many persons left the farms
for the cities as normally"
The secretary renewed his recon-
mendation for rural creiits legislation
asserting that action should be taken
. PROMPTLY TO increase .he maximum
which a farm loan hank may loan to
en- ~indiviCual from $4,000 to S25 900.
He advocated also a rcad3ustment. OF
the term par may run. saying a
system should ba established by
which the farmer could borrow for
periods OF from six months to three
years. Creation Of a new bureau OF
home economics was urEed by the
sarrctary to enable the department to
extend Its efforts toward better eco
nomic systems in the rural commu
nifty.
Another problem requiring immedl-
ate attention. the secretary said. was
''the necessity OF working out and
IMPLYING n comprehensive plan OF
projecting. r~egrowing and utilizing
Cur forests" He declared forest leg
isfetion should be enacted extending
federat cooperation 10 the states in.
the protection o. forests. co-ordinat-
ing state and federal service in the
growing and distribution OF forest
planting materiai. extending pur-
chase OF timberlano las rapid'y as
the condition OF the treasury will
permit and converting into national
forests some areas now comprised in
indian reservations. g.
The secretary reported good prog
ress IN organization of The packers
and aooekyards administration and
the grain futures administration. in
The campaign against plant pests.
and IN the various other lines of serv-
ice In which his department is inter
ested.
This year would ve a prosperous
year Tor agriculture and consequently
n prosperous year for .he nation. 10
the relationship OF prices now was
such as existed before the war. Sec
retar Wallace said. There has been
some Increase in prices of farm prob
ucts. but there has not been much
Improvement in the general relation
sa'p between the prices OF the things
tae farmer produces and the things
Lee buys,
Among the causes which contribute
70 the normal relationship of farm
prices to the prices of other things,
Secretary Wallace mentioned these;
orer-production OF many farm
crops.
Continued high freight rates.
Maintenance Of Industrial wages at
near wartime levels.
Economic depression and oeprec!-
ated currency in European countries.
Interference with the efficient
functioning Of necessary industries.
Unreasonably high costs of cistri-
button OF some farm products.
Some contend there is no such
thing as o-verproduction OF farm prod
,icts and can not be so long as there
are people In the world who suffer
for food and clothing" said Secretary
Wallace. "On the same line of rea-
soning 1t can be argued that h pro
duction of automobiles will be made
quate until every man n woman
and every boy and girl Of high school
age owns one. There is overpro6fuc-
ton. as far as the producer is con-
cerned. whenever the quantity pro
duced can not be marketed at a price
which viii cover all costs and leave
the producer enough 20 tempt him to
continue production. And whenever
there is such overDroduction the out
put will be reduced either by on-
scious effort on the part Of the pro
ducers out OF business. The fact is
that for three years in succession the
farmers of the Unied tSates nave
produced more OF some crops h
could be sold at prices high enough
TO cover producing costs.
"It will never be possible for the
farmers to relate their production to
profitable oemand with the nicely of
Il manufacturer. both because they
can no. control the elements which
influence production and cnnnot est
mate demand SO closely. Neither Will
the farmers eyer be able to organize
as have the labor unions. and by
rules and regulations and disciplinary
measures compel obedience to polio