The Delta independent., 1923-10-12
FARM PRICES HAVE NOT KEPT
PACE WITH WAGES IN THE
INDUSTRIAL WORLD
(By Hsmy G, wallace. Secretary
OF Agf4culturo.)

ship between prices OF tarm produceo
and prices oe other commodities. This
IL not . new dtagnosis. It has been
painted out from time to time for The
past two and one-haf years. The soon
er people engaged in commerce and
industry frankly recognise the trouble.
the better It win be for an OF NJ. The
farmer could got along fairly wen
with present prices on what hs has 70
sell II prices Of whist he must buy
were down accordingly.
But prices OF other things reuain
high. That II what hurts. Wages In
industry and on the railroads ere a.
most twice a. high a. before the war.
Taxes are about twice ~ high. The
freight rates are from 80 70 76 Per
cent higher. Metals. building matsr-
ials Of all kinds. are from so to 100 Per
cent above rre-w~r prices. AL Of
these items are In the farmers cost
Of production.
Balance Must Be Restored.
Until a fair relationship is restored
between agriculture and industry and
commerce, agriculture will be upset,
and will have reason to complain. II
the present plane OF prices of COM
modities other than agricultural 10 to
maintained. then to have general pros-
perity agricultural prices must be
brought up. That probably means that
agriculture must be gotten off the
International market.
With wheat selling for considerably
less than the cost OF production, hun
dreds OF thousands Of specialized
wheat farmers are having mighty
hard time Of it. In the diversified
farming region east Of the Missouri
river wheat is but one OF several
crops and the trouble rs not 30 SER
ious. But in the spring wheat belt OF
the Northwest and the winter wheat
belt OF the Southwest where wheat is
the main crop. wheat growers are suf-
fering severely. Thousands OF wheat
farmers will go bankrupt. Other
thousands will be able to hold on only
by the practice of the most grinding
economy.
What Can Be Done?
The pressing question is, what can
be done to help the wheat growers to
get more nearly the cost Of production
for this years crop Some urge that
the government ought to fix a fair
price. That could be done only by the
government preparing to buy unlimit-
ed quantities at the price fixed. Others
suggest that the government go into
the market and buy 200, 100000 BUSH
els of wheat and store It, on the
theory that the taking off the market
OF that quantity would send up the
price to a fair figure.
l am not hopeful of good results
from either of these plans. How
would the government dispose Of the
surplus accumulated. What effect
wauld either action have on wheat
acreage? Whist effect would It have
on the acreage and price Of other
grains and Of livestock? Would the
same policy be adopted IN case of
ruinously low prices for other farm
products? The wheat situation is bad
enough in an conscience, and certain
ly the majority Of our people would
favor any practical method Of helping
but we ought to be reasonably sure
that the remedy attempted will do the
farmer moro good than harm and will
not make our situation worse instead
of better.
Almost everyone who comes back
from Europe tells us Of large crops,
and assures us that Russia viii this
year export large quantities of wheat.
do not think many Of our European
travellers have an opportunity to Sc
cure reliable information on this
point, but all such stories tend to have
a bearish effect on our own wheat
prices. A gradual decline in our eo-
ports Of grains and meats II to be ex-
pected. We can not hope to keep
them at the high rate Of recent years.
But these exports are not going to
vanish overnight. Europe will con-
continue to buy large. quantities off us
for some time.
Our railroads could help in this
trouble by making some reduction in
freight rates ON farm products. How
far the western grain-carryinE roads
can 80 In this direction under their
present operating expenses I am not
prepared to say. but the roads running
east from western primary markets
ought to be able to make some sub
stantial reduction in freight rates on
all grain. flour. livestock and meat
products. especially when destined for
export II our railroad rate men
would take the farm situation to
heart and get down and study It as
one OF their own problems, ! believe
they could help a great deal.
Wheat Acreage Production,