The New York herald., 1922-01-24
want. Permanent Relief.

20 ameliora;e the condition OF agricul-
tnre. In the effort 70 finance crop
movements, 10 expand foreign mar
ie,s 90 expand credits az home and
abroad. much has been accomplished.
These have been. 8; l. true. largely In
the nature OF emergency measures.
So long as the emergency continues.
II must be dealt with as such but at
The same time there Is every reason for
us TO consider those permanent modi-
fications OF policy which may make
relief permanent. may secure agricul-
ture 50 far as possible against the
danger that such conditions viii Srise
again, and place II as an Industry In
the firniest and most assured position
fer the future
You men are thorougly familiar
with the distressing details OF present
conditions in the agricultural commu-
nifty. The whole country has an acute
concern with the conditions and tue
problems which you are met 20 con-
slider. II is truly national interest.
and not entitled TO be regarded as
primarily the concern OF either class,
a bloc or a section.
Importance of Fsrmins.
Agriculture is the oldest and most
elemental OF industries. Every other
activity is intimately related 10 and
largely dependent upon II. IL Is the
first industry to which society makes
appeal in every period OF distress and
difficulty. When war Is precipitated,
the first demand Is made on the
farmer. that he will produce the where
withal for both combatants and the
civil population 10 be fed. and in large
part also to be clothed and equipped.
1t is a curious fact that agriculture
has always been the first line os sup
port Of communities in war. and too
commonly the victim of those dis
tresses which emanate from great con-
flicts Perhaps 1 may be pardoned a
word by way of developing this idea.
Until comparatively very recent times
the land was the first prize of victory
in war. The conqueror distributed the
subjugated soil among his favorites,
and gave them his prisoners as slaves
TO work it. Thus the ownership OF the
land became the symbol OF favor and
aristocracy. while the working OF 1t
was regarded as the task Of menials.
dedicated to iil-paid toll in order that
the owners of the land and the rulers
of the State might be able to maintain
themselves in luxury and to enforce
their political authority.
Coming down through the ages, we
see the advance of civilization gradu-
ally emancipating the soil from this
low estate. We see the institutions OF
serfdom and villenage under the
feudal order succeeding those of
slavery. Later. we see the creation of
q rural peasantry. comprising broadly
those who till the soil. but in most
x.-r,A
litical rights are very restricted. 1t
Is, indeed. not until we come to very
recent times and to our own country's
development that we see the soil lifted
above the taint of this unjust heredity
ard restored to the full dignity and
independence to which il Is entitled.
Lacked United Effort.
Even in our own times and under
tho most modern and enlightened
establishments the soil has continued
TO enjoy less liberal institutions for
its encouragement. and promotion than
many other forms of industry. Com
merce and manufacturing have been
afforded ample financial facilities for
their encouragement and expansion
While agriculture on the whole has
Jagged behind. The merchant. the
manufacturer. the great instruments
Of public transportation have been
provided methods by which they enlist
necessary capital more readily than
dces the farmer. A great manufac-
turing industry can consolidate under
the ownership of single corporation
with a multitude OF stockholders. a
great number OF originally separate es-
adjustments and thus effect economies
and concentrations and acquire for
itself a power In the markets where 1t
must buy. and in the markets where it
must sell. such as have not been made
available to agriculture. The farmer
Is the most individualistic and inde-
pendent citizen among us. He comes
nearest to being self-sufficient, but
precisely because OF this he has not
claimed for himself the right TO employ
those means of cooperation. coordi-
nation and consolidation which serve
so usefully i'm other industries. A
scoro or moro of manufacturers con-
solidate their interests under a cor
porste organization and attain
great increase OF their power In the
markets, whether they are buying or
selling. The farmer. from the very
ncde OF his life. has been estoppcd
from these effective combinations.
therefore. because he buys and sells
as an individual IL Is his fate to buy
in the dearest and sell In the cheapest
market.
Farm Credit Needs.
The great Industrial corporation
sells its bonds In order 10 get what
we may call its fixed or plant capi-
tai. just as the farmer sells a mort
gage on his land in order to get at
least large part of his fixed or plant
capital. ! am not commenting the
bonding or mortgage system OF capi-
ializa ton. rather only recognizing a
fact. But there in large part the
analogy ends Both the nanufsc-
turer and the farmer still require pro-
vision OF working capital The manu-
facturcr, whose turnover is rapid,
finds that In the seasons when he
needs unusual amounts OF working
capital he can go 10 the bank and
borrow on short time notes. His
turnover is rapid. and the money
will come back In time 10 meet his
short term obligation. The merchant
finances his operations In tho same
way. But the farmer is In different
case. His turnover. period is a long
ono: his annual production Is small
compared 10 the amount OF invest
ment. For almost any crop the turn
over period Is at least year. for live
stock II may require two or three
years for n single turnover Yet the
farmer Is compelled, IL he borrows his
working capital TO borrow for short
periods, 20 renew his paper several
times before his turnover Is possible.
and to take the chance that IL he IS
called upon untimoly 20 pay Off his
notes he may be compelled to sacrifice
growing crops or unfinished live stock.
Obviously. the farmer needs to have
provisions, adapted to his require
mcnts. for extension Of credit TO pro-