The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-08-21
Wallace Urges
Lower Freight
for Farmer
Agriculture Suffers From Lack
of Balance With Manufac-
iured Goods, Secretary
Declares.

Washington, Aug. 20.-Thousands
Of American farmers will go bank
rupt with wheat selling at consid-
erably less than cost of production,
Secretary Wallace declared today,
while thousands of others will be
able to hold on only by the most
grinding economy. II the present
plane of prices OF commodities other
than agriculture is TO be maintained,
he added, then, to have general pros
perity, prices Of farm products must
be increased.
Eastern railroads could help by
making substantial reductions in
freight rates on agricultural prod
ucts, especially IL destined for export,
Mr.. Wallace asserted, pointing out,
however. that until agricultural in
dustry and commerce are brought
into a more normal relationship,
acute agricultural problems will de-
velop one after the other"
''The ruinously low price Of wheat
is not new agricultural disease" :"
said the secretary in a statement. ut
is just one more acute symptom OF
the general trouble from which agri-
culture Is suffering The disease It
self is the distorted relationship be.
tween prices OF farm products and
prices Of other commodities
THE sooner the people engaged in
commerce and industry frankly rec
ognize the trouble. tie better It VII
ne for all Of us. The farmer eoule
get along fairly well with present
prices OF what he has to sell IL prices
of what he must buy were down ac-
cordingly Butprices 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. Taxes are about
twice as high. Freight rates ara
from so TO 10 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
tho farmers cost of production. Tn
I'll a fair relationship is restored BE-
tween agriculture and industry and
commerce. agriculture will be upset
and will have reason to complain.
Doubts Proposed Remedies.
"The pressing question is. What
can be done to help the wheat grow
ers get more nearly the cost Of pro-
duction for thi. years crop? Some
urge that the government ought II
fix fair price. That could be done
only by the government. preparing to
buy unlimited quantities at the price
fixed. Others suggest that tine gov
ernment go into the market and buy
200 600 900 bushels OF wheat and store
it, on the theory that the taking off
the market OF that quantity would
send up the price to fair figure.
II am not hopeful Of good results
from either Of these plans How
would the government dispose OF the
surplus accumulated What effect
would either action have on wheat
acreage? What effect would it have
on tho acreage and price Of other
grains and of liyestocka Would the
same policy be adopted In case Of
ruinously low prices for other farm
produets7 The wheat situation is bad
enough in all conscience. and GER
tainly the majority Of our people
would favor any practical method Of
helping. but we ought 10 be reason.
ably sure that the REMEDY attempted
viii do the farmer more good than
harm and will not make our situation
worse instead OF better