The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1922-03-02
= ference between the values of what
he sells and what he buys.

ference between the values of what
he sells and what he buys.
CURTAILMENT ONLY RECOURSE.
The only recourse of the Ameri- |
can farmers in the current period of |
distress is one that he and many |
others have employed before-that
is, heavy curtailment of buying. !
Farmers purchases were far below
normal in 1921, and they remain at
low levels. Meanwhile the prices |
of practically everything the far
merS buy have been constantly work
ing lower until we now find that the |
single item of increased cost Of trans
portation almost, if not wholly, rep
resents the reduction of the purchas-
ing power of a given unit of farm
produce today, as compared will the
pre-war period. This increased trans
portation cost decreases the price of
what the farmer has to sell and also
increases the cost of what he must
buy.
While the farmer has endeavored
to meet the present situation by tenn
rorarily buying less, he cannot in that
way escape the burden of fixed
charges, based on enhanced land val
ues, which must be met regardless of
the price he obtains for his products.
One solution of the problem that
suggests itself is better system of
marketing farm products. The de-
vising of such a system would pre-
sent more difficulties than those that
have been met by cooperative ef-
forts like the various growers asso-
Citations of California, but they are
not insuperable. If foodstuffs can be
carried over when there is surplus
that not only will stabilize agricul-
ture, but will provide insurance
against possible food shortage in
the following year.
FooD SHORTAGE Nor IMPOSSIBLE.
Even though crops are now sell
ing below cost of production, it is
not visionary to consider the posi-
bility of food shortage.
America has repeatedly been an
importer of wheat in the past. The
indications today are that while the
1921 crop was sold below a fair
price, the surplus going abroad at
less than the cost of production, it
is possible and even probable that
we shall be importing wheat in 1922.
Aside from the question of food sup
| ply, these facts constitute powerful
argument for better system of crop
marketing.
Under such system the farmer
could avoid the necessity of selling
under pressure at too low a price,
and the worlds greatest grain grow
ing nation would be spared the econ
omic absurdity of importing wheat
to meet its domestic requirements.
WHY Nor INSURE AGAINr SHORT
AGE?
Nations and municipalities pro-
vide sinking funds against future
contingencies. Any well managed
business builds up reserves in pros
porous times against such a period
of strain as the present. Why, then,
should not we make an effort to pro-
vide a reserve as insurance against
shortage of the essentials of life,
when such a provision would in a
great measure stabilize the value of
the farmers crops and also would
protect the whole people against the
distress that would inevitably follow
any serious shortage in the worlds
food production?
Much study and considerable time
would be required to put such plan
into operation. mediate relief for
our agricultural classes might be
found in better financing-in making
available of sufficient funds at reas-
enable rates, and thus enabling the
farmers to carry on" until the con-
ditions improve. There are ample
funds in the country seeking invest
|ment and there could be no safer ba-
sis of investment than the credits
of the American farmer.
Immediate financial relief should
not be considered solely as FIRST
! aid treatment. If funds we're more
readily available in emergencies at
more equitable rates Of interest, the
necessity for forced marketing of
crops would disappear and the mar
keting would be done more system
atically, with consequent gain in
the average price received.
In some oil the older countries
grain crops are not rushed to mar
ket in any such brief period as with
US, but are stacked in sheds or under
other cover and are threshed and
marketed throughout the year. With
better storage facilities and inanc-
ing the American farmer could, by
a similar process. avoid some Of the