The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1922-05-26

8 3 3 8 8 8 & 3 9 : 3 3 : : :
FARMERS NHDD MORE TIl1n, aAYl
BXPHnT - PnDSDNT CONDITION.
RUSH HIM TO A MARKET THAT
10 NOT IN TAvORAnLD CONDITION
BY EUGENE MEYER JR.
Managing Director War Finance
Cooperation.
Editors Note.-Eugene Meyer Jr. ID
managing director Of the War Finance
Corporation. an organization that did
much to help relieve . situation that
at che time threatened more than
''hard times to the entire agricultural
interests Of the nation. His investsga-
tions have led him to believe that
present methods Of marketing ana a.
nacing the farmer are not satlsfa Glory
and are injurious to the best intereets
OF the entire economic structure.
Between the farmer and the man
who eats the farmers wheat and po-
tatoes, or smokes his tobacco. Or
stands an Intangible but formidable
barrier-time. Over niety per cent ct
the wheat In the United States % har-
vested In June, July ard Aug lst: but
It may take . year for 1t l.. get into
the bakers ovens. Over ninety psr
cent Of the tobacco 10 harvested In
August. September and October. but
the smokers pun away ~ hard in
January ~ they do in October. And
90 Il 10 with most Of cur staple agri-
cultural products-between production
and consumption Their 70 an interval
that may stretch out to whole year
or even longer.
Here 10 q fundamental factor in the
marketing Of the farmers output that
perhaps has received too little atten-
ton. The American producer has
grown accustomed to dispostng Ct his
crop shortly after the harvest, leav-
ing to some one else the task OF pro.
vtding storage facilities ana the nee.
essary hnacing fer carrying It until
needed by the consumer. Such a sys.
tenn may work smoothly no long ~
those who assume the burden OF taxi
ing care Of the time element IN the
marketing process are fairly sure OF
gcd returns. But It may break down
when the farmer needs It most when.
because Of uncertain markets and ua-
favorable business conditions gener-
ally, his bank calls IN the note on
which he has secured funds Tor his
producing operations. The farmer then
10 LETT to held the bag. Tie may have
cotton. corn. cattle or other products
sufficient under ordinary conditions to
meet his obligaticns. but he needs
time to market them In an orderly
way. And because. in the good years.
he has depended largely on others to
take care Of the time element. he has.
ON the whole. developed NO adequate
machinery for taking care Of It him
self when adverse conditions make It
necessary for him to do %.
During the past tvs years the agri-
cultural producer has been confronted
with q new situation-a situation
brought about by the war and tire
changed economic conditions resulting
from 1t. He and his banker have been
forced to assume . considerable part
Ct the burden. which In ordinary times
10 distributed al along the lire. Of
carrying and financing his products for
. longer period--until the American
3obber. Who'll esaler. manufacturer and
retailer. or the foreign buyer. are
ready to take them.
Gotten 10 our greatest agricultural
export commodity anc the market for
It depends largely upon the demand
from abroad. A a result Of Develop.
ments growing nut cf the war. Eurc.
pean buyers chanssd their buying
practice. They had been accustomed
to take 30 per cent y the'- annual
needs in the !,rss six months IT the
cotton year: sfter the We. they heRan
taking only nifty per cen. II. the same
six months. On account Ct fluctuations
In the rates OF exchanges, they were
unable to calculate. with any degree
Of accuracy. wht Their they would satn
orlose by buying ahead cotton, which
would have to be paid fer In !Ameri-
can dollars and sold In terms Of de-
prectated European currency. So. In.
stea dol faying in the greater part Of
their annual supply shortly after the
harvest. they bought only to- meet
current needs. spreading their pur.
chases over the year. This left sew
eral million bales for the American
producer to take care Of until they
were waDee6 abroad. He had to wait
from one tc six months longer Tor his
money. He had not cal culated on this
waiting.
with the economi. activity and
buying power OF the grower seriously
impaired. the whole cotton producing
section Of the country was disastrous.
" affected. They way to relieve the
situation was to put the producer in
position to market his crop over .
longer period and. At the same time.
to 20 on with his regular operations.
With this end In view. the War ri.
nance Corporation financed. under the
export powers. the shipment Of con-
siderable quantities Of cotton to for
eign buyers for cash 10 It was needed.
TAis acticn WAS followed BY . loan OF
eS.eeo.ooe to Aississ'ppi cooperative
marketing ASSOCIATION to finance the
carrying Of leo.eee bales In public
waFehouses in tho DATED States unit
N - a a.