Evening star., 1924-02-06
in TODAY'S SPOTLIGHT
BY PAUL Y. COLLINS

The agricultural crisis confronting
the northwest, and to a less degree
the farmers throughout the country,
is SO serious that unless Congress
devises some means of practical re-
lief millions of acres of abandoned
farms will become weed-grown this
summer. Hundreds Of thousands of
farmers. together with bankers and
merchants doing business with them,
are facing bankruptcy, and a faS
greater number are being foreclosed
and turned out in poverty. losing the
savings OF their lifetime.
In 1910 the bankruptcies in the
spring wheat states-AIinnesota. the
DakotaS and MOntana-were of farm
ers, 1873 per cent of all bankruptcies.
In 1920 farmer bankrupts numbered
lis per cent of all bankrupts, in
1921 27.5 were farmers, in 1922 4S.S
and in 1923 54.3 per cent We're
farmers.
Such a condition cannot continue
without affecting the business of the
entire country. Food costs are eX
orbitant today and have been so since
the early part of the world war, even
while food producers were going into
bankruptcy because cost of produc-
tion was mounting. If now there is
coming a great exodus of farmers
from their fields of production to the
city ranks of consumers and wage
seekers, food costs must increase be-
yond possible calculation. Not even
labor unions will be able to main
a
been adding to the cost of farm pro-
duction, as well as to the cost of
everything produced in the cities
clothing, food. building rents and
There are four bills now pending
in Congress looking toward solutions
of the farm problem.
One is by Senator Gooding to fix
the minimum price of wheat at S1.50
a bushel in the terminal warehouses
of Portland (Oregon), Seattle. Min
neapolis. Duluth, Chicago, Buffalo.
Galveston, New Orleans and New
York. The market price today in
Chicago is about s1.13 bushel. I'm
could not be sold on the market at
more than $3.50 bushel would be
bought by the government at that
price. This law would expire July
/, 1926, and therefore is intended
only as temporary relief.
The second measure is fathered by
Senator McNary and Representative
Haugen. 1t would establish an ex-
port commission, whose object would
be to buy or build elevators and lease
vessels and to buy such quantities Of
wheat and other farm surplus as nee
essary to stabilize the market and
give the farm products the ratio of
purchasing power that they had be-
fore the war.
The purchases would all be made at
market price. but 20 per cent of the
payment thereof would be made in
scrip, which would be redeemable
in money only after the close of the
year, when the net profits of all
transactions. would be known and
co comparatively on the basis Of the
scrip each then held. 1t is estimated
that of the S0o,000,000 bushels of
wheat raised last year, 200,000,000 is
surplus This would be bought up
by the commission and dumped upon
the foreign market as judiciously as
possible. and there sold at whatever
it would bring-undoubtedly at less
than present market prices abroad.
The loss would be borne by all Amer
lean wheat producers, but, through a
tariff wall against admitting Ca
madam or other foreign grain into
this country, the domestic price
would be forced up to $1.50 or more.
while the loss on the dumped wheat
so that the farmers would net about
$137h instead Of an average now
of s1.13 per bushel.
The third proposal is the Norris
Sinclair bill. This would establish a
government-owned corporation, with
a capital Of $100,000,000. to be sub
scribed by the government. This