The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1922-12-27
FARMERS GETTING WELL ADVISED.

Mr.. ]. R. Howard, president of the American
Farm Bureau federation, appears to be an ex-
ceedingly level-headed representative of the agri-
cultural industry, who does not believe that the
great economic laws governing commerce can be
set aside by legislative enactment.
In this he differs from many of the profess
friends of the tillers of the soil, who try
to make the latter believe that their ills can be
out by congressional Intervention
thus, the Republicans endeavor to make the great
wheat growers think that a high tariff on that
cereal would raise the price of wheat in the home
s< 4xA zgee
Time and again the Miner has called attention
to the settled fact that it is the surplus of any
which has to be sold abroad, which fixes
the price of that product in the home market.
Mr.. Adam Smith, one of the greatest political
economists of his day, laid down that principle,
and in a recent interview published in "Our
World" Mr.. Howard refers to this as follows:
Adam Smiths bean story has not, and
never will be successfully contradicated. IF
10 bags of beans are produced and there is a
market for only nine, the tenth bag sets the
price for all, and the whole 10 bags will not
bring as much returns, usually, as would the
nine, If the tenth bag had not been produced.
Our problem is to market that tenth bag"
What hope do you see in the European
situation, just now? What is the way out,
from the farmers viewpoint? ?" l inquired.
Mr.. Howard reflected a moment. Evidently
his mind was roaming back home to his Iowa
farm. Finally he said:
ut seems to me that a nation isn't must
different from an Individual I'M many re-
spects. If l should turn off my hired men
out there in Iowa, nail up my front gate, let
most of my land and machinery lie idle and
gradually eat up my cattle and burn my barn
piece by piece for fuel, it would be only a
matter of time until the sheriff paid me a
visit. I would be a bankrupt.
well, that seems to be the path that some
OF the European countries are travelling. The
only solution that l can suggest is work.
Production is not only the antithesis of bank
ruptcy-it is the cure for it.
There are at least three things which if
accomplished in Europe, would greatly help
American agriculture. These are, the bal
anclng OF European budgets, the final set
tim OF German PREPARATIONS and the stabil-
izing of exchange.
Let me illustrate how farm crop prices
IN America are affected by exchange rates
abroad. On December z of last year. Nav
wheat in the Chicago pit sold at 81. O9h. On
May l, it was $1.41K. The Improvement in
price amounted to 20 per cent. Between
these same dates sterling advanced 2 per cent.
the French franc % per cent, and the Italian
lire 26 per cent. We believe that this tendency
was founded on something much more import-
ant than mere coincidence.
The greatest fundamental need, in nv
opinion, is to have exports and imports of
goods and services between nations more
nearly IN balance. This in turn can be ac-
compllshed only by resumption of business
activity in countries now disorganized. in
order that they may have more goods to sell
and with which to make purchases of our
products. 1t is a part of our obligation to
furnish Europe the opportunity through
credit or other economic tools, to solve her
own difficulties through renewed productive
effort"
Take the whole talk, and it is something q
a revelation, for it shows the farmers of thi
country are being given a real insight into thos
great principles which govern trade and commerce.
Already there are indications that the tiller
OF the soil can not be so readily misled by dema
goglc politicians as they used to be. for they ar
studying economics themselves, and MANY of then
are better advised on these subjects than sewers
# the self-advertising lawmakers in congress-.
1t will be noted that Mr. Howard takes exactl,
ne same position ia relation to the necessity "a
oreign trade that the Miner has been aettinI
orth for months bask-Butte Miner.
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