Evening star., 1924-07-13
Farmers and the European Market
BY FREDERIC J. HASKIN

American farmers, legislators and
flnanciers who are looking to an ex-
panding European market for the
agricultural products of this country
as a solution in large part Of the
problem as to what Is to become of
the farming industry are looking up
a blind alley
Such is the conclusion reached as
the result OF a survey Of American
agriculture and the European market
made by Edwin G. Nourse with the
aid of the council and the stan Of the
Institute Of Economics. The subject
Is treated exhaustively in volume
| that has Just been issued as one OF
the Institutes publications on eco
nomic problems.
No attempt is made to develop in
the volume . plan or program by
which all tho troubles OF the farmers
of the United States may be cleared
away: 1t attacks merely the one
questionable real conditions that
confront Amer erican Agriculture so far
as a transatlantic market Is con-
nitely answered we shall make little
progress in effecting a solution of
present farm problems" says H. G.
Moulton, the director Of the institute,
while the author Of the book says:
Whatever longtime programs or
be adopted. wise action can be had
| only II we appraise the European
| market at it's correct value"
AS to the situation in Europe, Mr.
Europe in the position of a heavy
creditor of the United States was de-
clining in importance as market
for our Agricultural products at pre-
war price levels, a less prosperous,
not to say crippled, Europe, shorn Of
tremendous scale, cannot be expected
to be q good market at present and
prospectively higher levels of costs.
Hence Agricultural exports may be
to drop stu st tI5shes in .c isa4
culture to plan her future building
on the foundation OF an expected re.
vival and growth of the European
market would, therefore, mean build
ing on quicksand."
CAn't Pay, Hence Can't Buy.
The nub Of the matter is that Eu-
rope must pay for her imports of
farm products and foodstuffs with
| exports of her manufactures, and the
| industrial development Of the United
States makes this country q constant
| ly poorer market for what Europe has
to sell. If Europe can't pay she
cannot buy. She will turn for what
| she needs to those countries where
| Agriculture production costs are low
or, and hence prices are lower, and
| where there is q wider demand for
the output Of her mills and factories.
Mr.. Nourse in his study of the
question shows that until almost the
close Of the last century the United
| States was q land of relatively sparse
population with exceptionally rich
| on the other hand. was a land of
dense population and relatively in
| ferior farming possibilities. Western
Europe was thus the natural work.
shop Of the world, while the United
| States was it's granary. as we'll as its
| live stock farm and cotton planta-
Imports Of food and agricultural
| raw materials from this country at
! cheap prices contributed greatly to
| ism, and Europe's ready market con-
| tributed greatly to our national
But by the time the European war
| the United States, the end Of free
| land and the increase in our own pop
ulatfon had caused domestic consump-
| tion more and more to overtake home
supply. Tho n4tOral result was tndt
| - prices here rose and as our own
| market for manufactures was more
| nearly supplied by domestic produc-
| ton, Europe turned in larger measure
| TO newer or less industriAlized coun-
| tries such as Argentina, Canada, Rus
| ala and Australia.
| our agriculture had barely attain
| ed this better economic balance, says
| MP. Nourse, and American farmers
/ were hardly yet accustomed to this
| Tione-deferred prosperity, when the
| coming Of the world war gave our
| agricultural production an unprec-
| edented stimulus. War prices in
creased the farmers prosperity for a
| brief period, only to hur1 him down
| to severe depression through the col.
| lapse Of tho European market for his
l surplus, while yet he seemed unable
| to curtail that surplus-
| No scheme thus far brought Tor.
| ward has served to restore . pfof1t-
| able foreign market for the farmer.
to adjust supply to the impaired de-