The Mankato free press., 1923-10-19
FEDERAL AGENCY
WHEAT HANDLING
Governor Nestos Suggests
Aid To Farmers
NEED QUICK RELIEF
North Dakota Executive Ex-
pressed Views In West
Baden Speech
[Assoclated Press Dispatchl

lIuilI6uluIe SSldpilSuihSAI Va % 6~'
ernmentaI agency with adequate
powers to segregate the exportable
American surplus Of wheat and to
dispose of it in the markets OF the
world upon the best terms obtain
able was urged as a means OF aid
ing the wheat farmer by Governor
LR. A. Nestos of North Dakota, in an
address here today. The address
was made before the annual con-
ference OF governors Of the United
States, in session here, and Cover
nor Nestos asked each executive
to lend his assistance.
The speaker said he also believed
there should be provided by the
government for the use of this
agency a working capital in the
amount of the profit from wheat made
when it limited the amount that
the wheat farmer might receive for
his product below what it would
have been under the free operation
of the law of supply and demand.
Painted Drab Picture y
"This agency should then coop
crate fully with the Farm Bureau
Federation, the American Wheat
Growers, and other similar farmer
mutations both in selling to and
in making settlements with the
foreign powers and for that purpose
make the capital provided available
to the farmers who need advances in
| order to join in the program OF a
more orderly marketing Of their
, wheat" he added. This agency
should be made to function without
delay and any additional powers or
organization required to malne the
agency most helpful and efficient
should be provided as soon as Con-
gress convenes."
| Governor Nestos painted a drab
picture of the future of the wheat
! farmer unless speedy remedy is
| forthcoming. He quoted figures On
the cost of production in North
Cakota in 1923, saying the average
per bushel among 122 farmers was
1 40, while the average price at this
time is about 81 cents in the home
market, a loss Of 81 cents bushel.
Records for the last five years show
an average loss in the state Of 3S
5ents bushel, he added.
Speedy Remedy Needed
The governor asserted that unless
a speedy remedy was effected,
thousands of these farmers will
lose their all, <be driven from their
lands and disaster oyertake many
of our communities and cities and
thereby injure or greatly endanger
our national economic structure and
national welfare"
Explaining his plan for a govern
ment agency to handle the wheat
situation, Governor Nestos said that
during the process of reducing the
American wheat surplus and while
there still is such surplus to sell
abroad, the agency should be en-
powered to sell our wheat to some
of the European nations, who are
now indebted to us almost beyond
their ability to repay. for whatever
price may be'agreed upon and that
the agency be. authorized to grant
such nations a reduction in their
indebtedness to us equivalent to the
amount invested by them in our
wheat during the next three to five
years."
Must Dispose of Surplus
81 believe that this can be done
with such safeguards and under
such conditions as to insure the
ready disposition of our surplus and
at the same time help our European
neighbors restore the morale and the
working power of their people re-
build their industrial life, and leave
them in position where there will
be chance that in time they may
Indebtedness to u.s." ne declared.
In addition to eliminating the
wheat surplus, the governors from
many states were told that the Am
erican people must be taught to eat
more wheat. To speed the event,
the speaker added, the farmers must
| increase the number Of diversified
products in each state. He also said
the high freight rate, which was
detrimental to United States farm
ers in competition with Canadians,
despite the duty of thirty cents,
presents another strong argument
for the early completion Of the
Great Lakes-st. Lawrence deep
waterway"
Have Not Quit Wheat Raising
Governor Nestos said farmers In
New York. Ohio. Illinois and Mis-
souri, began raising more wheat at
the call of the government during
the world war and that they had not
| quit the big production. These farm
profit even now because of the mar
kets. he said. "In a. way, IL, seems
unfair that these states, which be-
cause of their nearness to the mar
kets can raise successfully and mar
ket proftably great variety of
crops which the Northwest because
Of its location cannot profitably
raise, should also continue to raise
a large crop OF wheat and by so
doing create the surplus which pre-
vents the farmers OF the Northwest
from raising profit on their main
CROP" he declared.
"It Is essential" the speaker con-
| tinued, "that we should create mar
keting conditions that Will make 1t
possible to supply the wheat at such
time as it is needed for milling pur-
poses. To accomplish this, 1 believe
that the success of the labors OF the
! Farm Bureau Federation and the
! National Wheat Growers is Of the
utmost Importance, and that 1t is
through such voluntary cooperation
that the ultimate solution Of this
problem will come and lasting
prosperity for our farmers establish
ed"
Farmer Had Inning
The farmer had his inning this
morning before the conference. Dis
cussions of agricultural problems
occupied the greater part of the
forenoon program. -
Wheat, the wheat farmer and the
solution Of the depressing wheat
price situation was discussed at the
oDeninp of the session hv Governor