The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1923-10-26

culture as we'll as industry, but which
requires slight additional machinery
before the benefits to the former class
are more than a fiction, Chester c.
Davis, state commissioner of agTicul-
ture, laid before the members of the
War Finance Corporation at the Hell
ena hearing this week a plan which
he, as we'll as all the farm Orgniza-
tions Of the state are confident will
eliminate the present disparity in
price levels between manufactured
and farm commodities and will do
more than any other one thing to
bring prosperity back to the farms.
While recognizing the value of CO.
operative marketing, Commissioner
Davis believes it will take years to
make its influence fully effective on
prices and that it will not reach to
the root of present conditions soon
enough. The proposed plan is a SIM
pie one. The American manufacturer
produces an article in greater quanti-
ty than is required for home con-
sumption. He disposes of the surplus
above home consumption for what he
can get abroad and sells the remain
der at home under the protection of
the tariff. The export surplus never
depreSSes the market.
Commissioner Davis and the farm
Organizatios believe that if the wheat
produced above this country's needs
is exported and sold, the remainder
will bring a price based on the world
market, plus the tariff and the carry
ing charges, instead of at present the
world price, less the carrying charg-
es. Corn, oats, hogs and cattle would
follow the wheat level and the bene-
fits would be distributed over all agri-
cultural America. The plan calls for
the creation of an expert commission.
Say the wheat crop was 100000
bushels and domestic requirements
00,000,00O bushels. The export COM
mission would sell 100,O0O,00O bushels
on the world market, and whatever
loss was incurred would be pro rated
on the balance of the crop, which
would automatically bring the world
price, plus the tariff duty and the
freight. No price fixing is contem-
plated and no additional taxes. The
plan offers no incentive for farmers
abnormally to increase their wheat
acreage, for the larger the crop, the
more wheat must be sold abroad and
the bigger the loss to be pro rated on
the bushels for home consumption.
Must Meet The Problem
1.-THE situation in Montana and other
farm states demands of every farmer
and business man who is interested
in agricultural reconstruction that he
look closely into suggested methods
Of relief, and test each one by the
question: does it meet the problem as
/ know it to exist in my state? ?" said
Commissioner Davis.
Low price levels for most farm
products and particularly for wheat
in comparison with high price levels
for manufactured commodities, labor
and everything the farmers buy, con-
stitute the great basic fact in what is
wrong with the agricultural situation.
Another phase of this difficulty is the
terrifying debt which stands on the
land, the chattels and the individual
farmers. Most of the debts were con-
tracted by farmers in the three-year
period prior to the summer of 1920,
an era Of high prices. 1t means that
the farmers are struggling to pay
1925 wheat debt with 80 cent wheat.
The need is to restore agricultural
prices to an equality with other prices,
and when that is done the farm Situa-
tiOn will speedily right itself with re-
sultant relief to the bankers, mer-
chants, professional and other inter
ests whose business welfare depends
on a prosperous agriculture. Subject
all proposed remedies to this test. If
they do not tend toward speedy and
complete restoration of farm prices,
they will certainly fail to avert still
heavier losses in this and other states.
Restore Price Equality
'There is little disposition on any
ones part now to question the value
or the desirability of farmer cooper
ative marketing organization. At the
same time, even the most optimistic
of the leaders of the wheat growers
movement do not expect to be able to
reach the point where their marketing
influence will correct this disastrous
price relationship, until years have
been spent in work and struggle. In
the meantime farmers continue to
trade a dollar worth 100 cents, for one
worth only 70 cents, in every business
transaction they make.
Neither does the proposed reduc-
able that may be in a national sense,
meet the situation in Montana. In
the main the debt that was contracted
growing wheat, will have to be paid.
if it is paid at all, by producing
wheat. Montana's present position
among the states is near the top of the
natural wheat producing list.
"The United States stands at pres
ent committed to a policy of protec-
ton for industry by a protective tar
Tiff. Agricultural products stand on
the protected list. With wheat and
cattle and hogs and other important
farm commodities of which we an
nually grow a margin for export, the
factor that fixes price is the figure at
which that portion of the crop that
is exported sells, rather than the for
eign price level plus the tariff.
A Leaf From Industry
IF manufacturers or a combination
of manufacturers find themselves with
necessary abroad at whatever figure