Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-24
THE FARM PROBLEM

i doubt as potent as economic reasons in
inducing the President TO arrange for a
conference on agricultural conditions.
The farmers are suffering from the same
economic depression that affects men In
every other form of industry. They are
as deeply Interested as every one else in
the discovery Of way TO better conditions.
But unfortunately they are more disposed
than other business men to be hoSpitable to
Quack remedies. A gathering Of representa-
tives Of the farming industry such as as
sembled in Washington yesterday may, how
ever, be able to reach some sound Conclu-
sions on the best methods of relief.
But whether any economic advantage fol-
lows the conference, it has demonstrated
that the Administration is interested in the
troubles Of the farmers and recognizes that
their relief is important and that it Is
committed 10 such legislation as seems best
fitted 10 improve conditions. When there
is q farmers bloc in Congress doing its
best TO hold up legislation until it gets what
It seeks, It is politically important that
something be done to bring the farmers
themselves to take n reasonable view and
to persuade them that their troubles nre
only part of the troubles from which the
whole Nation Is suffering.
The men attending the conference are
said to be conservative for the most part
seek Endorsement Of n greater degree of
governmental relief than Is wise. For ex-
ample, some of the radicals wish the Gov
ernment to guarantee prices for the prin-
cipal farm crops. In the war emergency
the price Of wheat was guaranteed in order
to induce the wheat growers to raise large
crop There was considerable dissatisfac-
tion because the price was not high enough
to satisfy the farmers who wished to take
advantage of the worlds necessities. Many
of them said that IL It had not been for
the interference of the Government they
could have got from fifty cents to 81
bushel more for their wheat. Yet the fnct
remains that this experiment with u Gov
eminent promise that wheat should not go
below fixed price has convinced many
wheat growers that it should be the per-
manent policy.
The only way they can be convinced Of
their error Is by showing them the remedy
would be worse than the disease. For
tunately the evidence is easily available in
the experience Of one of the Brazilian states
Il few years ago in validating the coffee
crop. There had been an unusual crop, a
crop so big that the price fell below the
cost of production. The Government fixed
a minimum price and bought the surplus
crop and held It on the theory that a poor
crop the next year would make market for
what Il held. But under the stimulus OF
the profitable price fixed by the Government
the planters intensified their cultivation and
produced another big crop and the surplus
had to be bought once more. The plan
broke down because It was costing more
than the Government could afford and was
rapidly turning into governmental subsidy
to the planters. What happened in Brazil
would happen IN the United States or wher-
ever else the validating plan might be
adopted.
The demand Of the farmers, however, that
arrangements be made for financing them
in the same way that manufacturers are
financed Is reasonable. The manufacturer
has n quick turnover, while the farmers
turnover occurs but once year in the case
of grain and but once in three years in the
case Of livestock. The farmer naturally
wishes to be able to get money for a year
at least without the necessity Of frequent
renewal Of his notes and without the risk
Of having the notes called before his crop
Is ready 70 sell. Tie Farm Loan Board
has provided way for the farmer TO get
capital with which 10 buy his farm. What
he seeks now IL q way to supplement his
working capital. The President is com
mitted 10 the support OF any feasible legis-
lation which will meet this issue
II the conference brings about anything
Ike an agreement among the delegates on
what can be done and what it would be
unwiSc to do It will Justify itself.