Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-12-10

petitors in world markets in farm
products we export.
"Unfavorable exchange rates with
European countries, together with
financial difficulties in those coun-
tries which need our surplus make 1t
more difficult for them to buy and
GU. export outlet for farm commodi-
ties Is narrowing. Aside from this
difficulty, 1t is to be expected that as
the countries of Europe get on their
feet, they will strive to produce more
of the things they need and buy less
from us, and this must be considered
in planning our future production.
1.-THE costs of retail distribution of
farm products are unreasonably
large, thus enhancing the price to the
consumer and depriving the farmer
Of the benefit Of increased consump-
ton which ought to follow lower
prices which result from large pro-
duction.
"Stddies indicate that AZ percent
of the farmers feel that their finan-
cia1 difficulties are due to low prices
of farm products; to high taxes, II
percent; high costs Of farm labor,
IL percent; high freight rates, 10 per-
cent; high interest, 10 percent;
reckless expenditures during boom
period, percent, and too much
! credit, percent.
ITO frequently persons who have
not inquired into the matter express
the opinion that the farmers diff
culties are due to reckless eXpendi-
lures for land, speculative securities,
and other purposes during the flush
years. The percentage who suffered
in this way, however, does not seem
to be very large. The farmers trou-
bles are due primarily to the low
prices of their farm products and the
high prices for the services and ar
ticles they must buy"
A very complete report on the
wheat situate in all of it's aspects
has been prepared by his department,
Secretary Wallace said. He discWs-
sed the many suggestions of ways to
aid the wheat growers out Of their
present distressing situation. A re-
duction of acreage, he said, was go
ing on at a rate much greater than
generally realized, and as rapidly as
could be expected. Diversification of
crops in sections heretofore special
izing in wheat was making substan-
tial progress. The idea that the gov
eminent arbitrarily fix a price COW
ering production costs was no longer
entertained by any considerable
number. The bringing in of foreign
farm laborers to reduce production
costs seemed visionary because high
industrial wages would pull them
away from the farm. The purchase
and holding by the government of
surplus wheat might prove of tenn
porary help provided an advance in
price, which is the object suoght,
should be protected by the necessary
advance in the tariff. The proposal
to sell a considerable part of the sur
plus to some country which could not
buy for cash but which is in urgent
need of food, selling on long time and
taking evidences of Indebtedness, is
sued by state or municipal govern
ments, was worthy of conSidera ton.
The organization Of wheat growers
into a successful powerful coopera-
tive marketing organization might
enable them to control the flow of
wheat and reduce marketing costs
but was a work requiring years.
THE existing tariff has given a
substantial measure of protection to
the growers of certain varieties of
wheat" said Mr.. Wallace. but not
sufficient to make good the difference
in cost of production and marketing
here and in some competing coun-
1.-Two W iSiA al AtlStO . eiA SOiNSA iAShs
Any effort which has the effect of
advancing wheat prices at home must
be supported by an advance in the
tariff on wheat
Mr. Wallace outlined his sugges-
! ton for an export corporation. which
| he first announced recently in an ad-
dress at Chicago, to take care of sur
plus agricultural products.
| Many objections, some of real merit.
can be urged against the scheme
proposed" said the Secretary. ut is
conceivable that there are some OBJ
stacles which may not be easy to
| overcome. However, there seems to
me so much, merit in the PROPOSAL
| that it is worthy of the most pain
/ stalking analysis and the most criti-
cal scrutiny. The principles invoked
are such as have been successfully
/ applied in times past by private in
! itiative by industries which have sue
cessfully disposed abroad of an en-
barassiig surplus.
''1f farmers could control their pro-
| duction as does organized industry,
| of if they could exact :; price for their
labor as does organized labor. I'M
usual acton by government might
not be demanded so urgently. 1t is
| just as well to keep in mind that both
| industry and labor are beneficiaries