The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1923-11-01
WOULDPAY GROWER
ON DEFICIT BASIS
Continued from first page.9

nesota, g; North Dakota, 3 b; South
Dakota. 1.9. Had these states pros
duced an average crop hety would
have produced 103,521, 900 bushels
more than they actually produced
this year.
states in 1923 with the average 1or'
the United States, produces an even
more startling result. Had eacn OF
these states produced yield equiva,,
lent to the average for the United
States for spring and winter wheat,
they would have produced 143,l25,-
800 bushels more than they actually
did produce this year. Outside OF
this area the crop this year averaged
. above normal. 1t is clear, then, that
the present difficulty arises primarily
out of the deficiency OF production
confined to these eight states west OF
sthe Mississippi river. In other words,
when the present wheat situation IS
separated from the general agrlcul-
,4ural situation, it is automatically re-
duced, to a local problem.
5 1--WE have now traced the wheat
roblem to it's lair west of the Missls-
sippi river and are squarely con-
flonted with the question OF what
we are going to do with it. Is this
a condition which justifies direct or.
Indirect intervention of the federal
government? If so, what should this
actor be?
!. Assuming a farm value OF 81 per
bushel of this deficiency of produc-
ton. we have loss of purchasing
power in these eight states this year
Of upwards of 500, 00O,OO0 winch.
has ITS effect not alone upon the
farmer but as well upon the pros
perity Of the industries dependent II,
whole CT in part upon farm purchas-
ing b. wer.
Mot in 20 years has the yield in
Kansas or Nebraska been as low rs
II as t,,is year. This deficiency ott
prod ttion and its effe:t upon the
farmer is increased by the fact that
there was in Kansas an abandonment
of what acreage equivalent to 28 per
cent and in Nebraska to % per cent.
Gin the spring wheat area OF North
and South Dakota and Minnesota,
three years of drought, 1919, 1920,
1921, preceded the exceptionally low
Yields of 1923. In this section bank
failures have approached numbers
exceeded only in times OF acute
financial panic. Business failures like
wise have increased tremendously.
The number of farmers going into
Bankruptcy and of foreclosures OF
mortgages on farm lands has in
creased four or five times. Delinquent
taxes have increased enormously and
very large part of the interest due
upon farm mortgages remains I'M
liauidated. All of these conditions
lend force to the conclusion that we
have, here, condition approaching
a local economic catastrophe, justify
ing sonre form of governmental aid.
''If there is to be governmental ac-
tion-and I grant this is very large
sif'-what form should the action
take? Ought we to set up the artific-
ial means for raising prices?
Assuming an average cost OF pro-
duction in North Dakota of $15 per
acre-and this is probably far below
the actual-it would require a price
in excess of So per bushel on the
farm to produce cost of production in
North Dakota. Such price would
mean about $3.50 bushel in Ohio
and on a yield of 19.5 bushels per
acre would produce a return prob
ably very considerable in excess OF
the cost of production there.
"No possible price adjustment can
equalize the returns upon the ex-
tremes of yield per acre this year.
Besides, before such action could be
accomplished Of government, more
than TO per cent of the crop will
have moved out Of the farmers hands
and the benefit resulting from price
increases would insure to the grain
dealer, the miller and the Spectator,
rather than to the farmer.
.Besides, it is impossible either