The St. Johns herald., 1922-02-02
Some Aspects of the Farmers Problems By BERNARD M. BARUCH
 (Reprinted from Atlantic Monthly)
By BERNARD M. BARUCH

built up. All this is generally conceu- ed to be to the advantage of the con- sumer. Nor does the steel corporation lncOnsiderately dump Its products on the market. On the contrary, 1t so acts that 1t Is frequently a stabilizing influence, as Is often the case with oth- CT large organizations. It is master of it's distribution as we'll as of its pro- duction. If prices are not satisfactory the products are held back or produc- tion is reduced or suspended. It Is not compelled to send a years work to the market at one time and take whatever 1t can get under such circumstances. It has one selling policy and its own export department. Neither are the grades and qualities of steel determin- cd at the caprice of the buyer, nor does the latter hold the scales. In this sin gle lntegration of the steel corporation Is represented about 40 per cent of the steel production of America. The rest Is mostly In the hands of few large companies. Tn ordinary times the steel corporation, by example, stabilizes all steel prices. If this Is permissible Git Is even desirable, because stable and fair prices are essential to solid and continued prosperity why would 1t be wrong for the farmers to utilize central agencies that would have simi- lar effects on agricultural products1 Something like that is what they are aiming at
 Some farmers favored by regional compactness and contiguity, such as the citrus-fruit-raisers of California, al ready have found a way legally tc merge and sell their products inte- grally and in accordance with seasonal and local demand, thus Improving their position and rendering the con sumer a reliable service of ensured quality, certain supply, and reasonable and relatively steady prices. They have not found 1t necessary to resort to any special privilege, or to claim any exemption under the antitrust legislation of the state or nation. With out removing local control, they have built up a very efficient marketing agency. The grain, cotton, and to- bacco farmers, and the producers of bers and the vastneSS of their regions and for other reasOnsS have found integration more difficult task though there are now some thousands of farmers cooperative elevators warehouses, creamerieS, and other en terpriSes of one sort and another, with turnover of a billicn dollers year They are giving the farmers business experience and training. and, so fal as they go, they meet the need Oi honest weighing and fair grading; but they do not meet the requirements Oi ratiOnally adjusted marketing in any large and fundamental way.
 The next step, which will be pat tern for other groups, Is now being prepared by the graln-raiSers through the establishment of sales media which shall handle grain separately or col lectively, as the individual farmer may elect. It Is this step-the plan of the Committee of Seventeen-which has created so much opposition and is thought by some to be in conflict with the antitrust laws. Though there is now before congress a measure de signed to clear up doubt on this point the grain-producers are not relying on any immunity from antitrust legisla ton. They desire, and they are en titled, to coordinate their efforts just as effectively as the large business in terests of the country have done. IF connection with the selling Organiza lions the United States Grain Grower: Incorporated is drafting a scheme ol financing instrumentalities and auxill ary agencies which are indispensable to the successful utilization of mOderr business methods.
 It Is essential that tAe farmers should proceed gradually with these plans, and aim to avoid the error Oi scrappIng the existing marketing ma chinery, which has been so labOFiOusly built up by long experience, before they have 6 tried and proved substl ute CT supplementary mechanism They must be careful net to become enmeshed In their own reforms anc lose the perspective of their place il the national system. They must guard against fanatleal devotion to new doc tr4nes, and should seek articulation with the general economic system rather than its reckless destruction a' 1t relates to them