The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1924-10-23


would certainly be helpful If the gov
eminent should guarantee their pay
ment. This would cost the govern
nent nothing, for, as l shall show
later, the corporation would have
ample resources with which to retire
the bonds at maturity.
In order that this corporation might
function without difficulty, it should
be given express authority to place its
grain in all public warehouses suit
able for its reception. All grain ex-
changes should be required to admit
the corporation to their membership
In other words, the corporation should
enjoy all the privileges of any other
large dealer.
II must be understood that the
reason the price of wheat in this coun-
try is, under present conditions, de-
termined by world prices is that we
produce surplus of wheat for ex
port. Since the legislation which
am pointing out as necessary to pre-
vent the exportable surplus from de-
termining home prices is intended to
benefit the producer, it appears to me
to 90 without saying that the producer
should pay the costs OF the corpora
ton. These costs would include what
ever losses are incurred on grain ex-
ported, since the producer is respon-
sible for the exportable surplus. Ii he
we're relieved of this responsibility we
are justified in believing that price
such as have above suggested for
his grain would probably induce him
to increase very greatly the amount
of the exportable surplus In order
to prevent him from doing this, it IS
necessary to make him pay penalty
for it.
There may be several methods OF
collecting from the grower the money
TO pay the expense of operating the
corporation, including losses on grain
exported. shall merely suggest one
possible method. To illustrate how
this method would work, let us sup
pose that we have already determined
that our exportable surplus for Civ
en- year win be approximately POO,
900, 900 bushels and that there will be
approximately 4OO,0O0,OOO bushels sold
by the producer for consumption in
This country. Suppose also that it Is
known that the loss on the exportable
,urplus will be Approximately 20 cents
bushel, including the cost OF oper-
ating the corporation. This would
would amount to 10 cents bushel on
wheat sold for home consumption.
AS means of collecting this deficit
from the producer l would suggest
that the government issue scrip to be
sold through postmasters generally
to any one desiring it. Under the
conditions which / have just assumed
every dealer in wheat would be re-
CURED to use, say, 20 centsta bushel
in scrip in buying every bushel OF
wheat sold by the primary producer,
and the producer would have to be
required by law to accept this amount
IF scrip. After the seasons opera
lions are finished and it is definitely
known just how much per bushel of
wheat sold for consumption in this
country the costs and losses on ex
ported wheat amount to, which for
purposes of illustration we may as
sumo to be IL cents a bushel, the an
Of this fact would make
his scrip worth the difference be-
tween 20 cents and IL cents, or 81
cents per bushel. The producer hold
ng the scrip or any one to whom he |
nay have transferred it may take the |
scrip to the postmaster and collect 5 |
cents on each 20-cent piece of scrip. |
The price he would ultimately get for
his wheat would thus be the upset |
price fixed by the corporation on the
basis of cost Of production determined
w tuc uOpui tihChS Va aSAASuituAC anu
The cost of operating the corporation,
losses on export wheat.
If this system were in operation it
ought to increase materially the price
farmers receive for their grain. All
,ur past experience tends to convince
Is that where increase in production
8 possible, as it is in the case of
wheat, rise in prices causes an in
,rease in production. But the facts
rs to this win always be known ap-
at the time when new
.rop begins to come onto the market.
have no doubt that if system
ike that outlined above were put in
o practice it would for the first few
vears lead farmers to increase their
production materially. But the sys-
EN- would also penalize them heavily
or such increase. / think that after
ONE three to five years farmers
would learn that they can not beat
he system and that public sentiment
mong farmers would after while
ring about an adjustment betweenl
reduction and demand that would en-