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

CONTINUED from LIST page.)


make use of in order to be able to
do with the wheat crop or any other
product which we export in consider
able quantities just what the larger
business organizations of the country
do with their products. / want TO
make it clear at the beginning thar
in outlining these principles / am deal
ing with them not as representative
of the United States department OF
agriculture, but merely as a private
individual who has devoted good
deal of time to the study of problems
of this character. In other words, the
plan shall outline for stabilizing the
price of wheat is not one that has
been endorsed by my superiors in the
department. of agriculture nor by any
organization whatever. | hope to be
able to make it merely plain state
ment of facts and principles, which
every one can understand.
conceive the problem to be that
of putting farmers in position to do
just what the most capable business
men of the country do regularly. The
reason farmers have not done this be-
fore. is because of the difficulty of
getting them to act in unison.
Suppose the government would auth
orize the formation of a corporation
with the necessary capital and legal
authority to act for farmers in the
matter of exporting our surplus wheat.
Suppose also that the bureau of ag-
ricultural economics had already de
termined what price of wheat would
be necessary in order that the bulk
of the crop, say, three-fourths of it,
might be produced without loss. 1t
would certainly not be wise to put the
price of wheat at the point that would
make wheat production profitable
where the yield is only five or sia
bushels to the acre. 1t would not be
fair to the public to make them pay
the cost of producing wheat on such
land. We can produce all the wheat
we need without making use of such
land.
Just for the purpose of illustration
let us assume that this fair price OF
wheat should turn out in given
year to be $140 bushel. When thi
fact has been determined the wheat
export corporation announces that il
viii pay $1.40 for any and all wheat
offered to it. If the corporation were
in position to do this (and it is pos
sible to put it in this position) farm
ers would certainly not sell their
wheat to any one else at lower
price. Millers in this country would,
therefore, have to pay for the grain
they grind at least this upset price OF
the wheat corporation.
1t is assumed in what is said here
that this undetermined price is suf
fieiently near the world price that
wheat could not be imported over our
tariff wall at lower price.
am assuming tariff rate equal
to the difference between the upset
price in this country and the cost OF
producing wheat in other countries.
If the tariff at any time is less thar
this difference, then the upset price
will have to be lowered accordingly.
In other words, it would be imprac
ticable for the corporation to place Sc
high price on wheat as to enable oui
millers to get foreign wheat cheaper
than American wheat. That is a point
that would always have to be taken
into consideration in fixing the price
the export corporation would pay.
AS the corporation buys wheat it |
exports it as rapidly as practicable.
In that way it would have fairly
rapid turnover, so that it would not all |
at any one time require any large
amount of capital. This capital might
be obtained from two sources. Wheat |
in bonded warehouse is, under our
present laws, good collateral for loans
from federal reserve banks. A large
part of the capital required by the
could therefore be secured
through established channels.
But it is probable that the price the
export corporation could obtain for
the wheat abroad would be less than
the corporation had had to pay for the
grain. There would thus be some loss,
which would have to be made up from
other sources. viii deal shortly with
he question of who should stand this
oss. Just at present l want to deal
With the problem of the capital re-
Iuired by the corporation and how
hat capital might be secured.
1t is not at all necessary that the I
overnment should advance any of the
apital. It could, however, authorize
he corporation to issue bonds !
a such quantity as might re required,
1hich probably in no case would ever
xceed $1oo,Ooo,oOo or s2o0,oOo,oOo t