The daily star-mirror. (Moscow, Idaho) 1911-1939, 1923-08-21
WALLACE PREDICTS
REDUCED ACREAGE
SECRETARY SEES FARMER IN BAD
WAY-SAYS PRICE OF PRODUCTS
MUST BE INCREASED

I'LL ODI De lNChEASED
shingtOn-Thousands of Ameri
can farmers will go bankrupt wit
wheat selling at considerably les
than cost of production, Secretar,
Wallace declared, while thousands O
others will be able to hold on onl,
by the most grinding economy.
the present plane Of prices of com
mOdities other than agricultural is tt
be maintained, he added, then to have
general prosperity prices Of farm pro
ducts must be increased.
Eastern railroads could help by
making substantial reductions in
freight rates on agricultural products
especially if destined for export, Mr.
Wallace asserted, pointing out, how
ever, that until agriculture, industry
and commerce are brought into a
more normal relationship, acute ag-
ricultural problems will develop, one
after the other
The ruinously low price of wheat
is not new agricultural disease, y
said the secretary in statement. " 1t
is just one more acute symptom of
the general trouble from which ag-
riculture is suffering. The disease it.
self is the distorted relationship be-
tween prices of farm products and
prices of other commodities
Commodities Too High
sThe sooner the people engaged in
commerce and industry frankly rec
ognize the trouble, the better it will
be for all of us. The farmer could
get along fairly well with present
prices of what he has to sell if prices
at which he must buy were down ac-
cordingly. But prices of other things
remain high; that is what hurts.
Wages in industry and on the rail
roads are almost twice as high as
before the war. The taxes are about
twice as high. Freight rates are from
SO to Is per cent higher. Metals,
building materials of all kinds are
from so to 100 per cent above pre-
war prices. All of these are items in
the farmers cost Of production. I'm
til a fair relationship is restored be-
tween agriculture and industry, agri- |
culture will be upset and will have
room to complain.
The pressing question is what |
can be done to help the wheat |
growers get more nearly the cost of |
production for this years crop?, .
Some urge that the government ought
to fix fair price. That could be
lone only by the government prepar-
ing to buy unlimited quantities at
he price fixed. Others suggest that
he government go into the market
md buy 200,O00,000 bushels Of wheat
and store it on the theory that the
aking off the market of that quantity
would send up the price to fair
igure.
Fears Consequences
am not hopeful of good results
rom either of these plans. How
would the government dispose of the
urplus accumulated? What effect
would either action have on wheat
creage? What effect would it have
n the acreage and price of other
rains and of livestock? Would the {
anne policy be adopted in case of ;
uinOusly low prices for other farm
roducts? The wheat situation is bad {
nough in all conscience, and GER
ainly the majority of our people {
vould favor any practical method of t
elping, but we ought to be reason I
bly, sure that the remedy attempted s
vfll do the farmer more good than s
arm and will not make our situA- {
on worse instead of better.
" Whetner these acute situations I
light be relieved, if the government t
nould set up an agency with large I
uthority to handle our surplus farm v
roducts in it's discretion and provide i
with ample funds, I do not know, a
do not believe any one knows" a
The low price of wheat this year
i'll bring some reduction in acre S
ye, Mr.. Wallace predicted, adding u
lat +" it is terribly hard situation e
II the individual but those who re- a
ain will be benefited" Il
In reference to the export situation, h
} said: s.
GA gradual decline in our exports f
grains and meats is to be expected. c.
e cannot expect to keep them at the 81
gh rate of recent years. But these s.
ports are not going to vanish over Il
ght Europe will continue to buy "
rye quantities OF us for some time" 81