News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1922-02-08
Some Aspects of the
Farmers Problems
By BERNARD M. HARucH
(Reprnted from Atlantic Monthly
(Reprinted from Atlantic Monthly
BY BERNARD M. BARUCH

the steel Industry, in which the model
Is the United States Steel Corporation,
with its iron mines, its coal mines, it's
lake and rail transportation, its ocean
vessels its by-product coke ovens, its
blast furnaces, its open hearth and
Bessemer furnaces, it's rolling mills, its
tube mills and other manufacturing
processes that are carried to the high
est degree Of finished production COM
patible with the large trade 1t has
built up. All this is generally conced-
ed to be to the advantage Of the con
sumner Nor does the steel corporation
inconsiderately dump Its products on
the market. On the contrary, 1t so
acts that it Is frequently a stabilizing
| influence, as is often the case with 9th
er large organizations. 1t is master of
| its distribution as we'll as of its pro-
ductlon. If prices are not satisfactory
| the products are held back or produc-
| ton is reduced or suspended. 1t Is not
| compelled to send a years work to the
market at one time and take whatever
| it can get under such circumstances.
1t has one selling policy and its own
export department Neither are the
| grades and qualities of steel determin-
| ed at the caprice of the buyer, nor does
the latter hold the scales. In this sin
| gle indignation of the steel corporation
| is represented about 40 per cent of the
steel production Of America. The rest
is mostly in the hands of a few large
companies In 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 SINH
lar effects on agricultural products?
Something like that Is what they are
aiming at
Some farmers favored by regional
compactness and contiguity, such as the
citrus-fruit-rasers Of California. al
ready have found a way legally to
merge and sell their products inte-
orally 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 it 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 |
hides and wool because of their num-
bers and the vastness of their regions,
and for other reasons, have found I
Indignation a 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 billion dollers a year.
They are giving the farmers business
experience and training, and so far
as they go, they meet the need Of
honest weighing and fair grading; but
they do not meet the requirements OF
nationally adjusted marketing in any
large and fundamental way.
The next step, which will be a pat
tern for other groups, is now being
prepared by the grain-raisers through
the establishment Of sales media which
shall handle grain separately or col
lectively, as the individual farmer may
elect. 1t is this step-the plan 81 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
rs effectively as the large business in
-erests Of the country have done. In
with the selling organiza-
ions the United States Grain Growers
is drafting a scheme of
instrumentalities and auxili-
Try agencies which are indispensable
o the successful utilization of modern
business methods.
1t is essential that the farmers
hOuld proceed gradually with these
,lans, and aim to avoid the error Of ! |
crapplng the existing marketing ma
hinery. which has been so laboriously |
'uilt up by long experience. before '
hey have a tried and proved substi- {
ute or supplementary mechanism. :
hey must be careful not to become D
In their own reforms and c
Dse the perspective of their place In {
be national system They must guard c
gainst fanatical devotion to new doc f
rines, and should seek articulation a
18th the general economic system :
lther than its reckless destruction as b
relates to them. D
81
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