Evening star., 1925-03-31

result there was something like d
hundred million pounds more of but
ter produced in 1924 than in 1928.
This is about ) per cent OF the total
GnnuaI production of butter in the
United States. Domestic conSump-
ton of butter had increased In this
time about 5O,000,000 pounds. So there
was in reality a surplus of butter of
but 0,000,0 as compared with the
year before, or about 2l2 per cent of
the annual consumption. What hap
pened? The price Of butter decreased
from 90 per cent to % per cent. And
other dairy products went down as
well, for the price of butter largely
controls the prices of all other dairy
products"
What does this mean in dollars
and cents?"
"The total value of dairy products
from the farm in 1928 was about
S25OOOOO,OO0 So this decrease in
market prices resulted in a loss to
the dairy farmers of America of abou:
half a billion dollars in 1924"
Well what's the answer. COVER
nor? Has it not always been that
way?'
Says Organization Needed.
Suppose the corn growers and the
milk producers had been completely
organized during these years, do you
believe this condition could have
come about? No. The corn farmers. if
organized, would have adjusted the
supply to the actual demand before the
price became demoraliZed. For the sup
ply of any commodity which affects the
market price is not the entire stock of
the commodity in existence at the time,
but only that portion of il which Is
offered for sale.
IF the dairy farmers Of the United
States had Jointly purchased this " u
per cent surplus and held it off the
market, they would have received
$500. 600, 900 more than they did"
What would you suggest should
be done with this surplus?"
This question of surplus exists
mostly in the minds of those whose
interest ii is to depress prices. Take
cotton-the 1924 crop was 100000
bales. In 1923 il was o, 0o0,0 600 bales,
and Yet the 100000 were worth
about 100000 more than the 49,,
100000. No one has suggested that
the world has a surplus of cotton.
There is probably a shortage.
Make mistake. Temporary
prosperity in certain grain products
will not solve the farm problem.
There is a farm problem, and it will
continue to grow in Importance until
the adjustment between production
and consumption becomes intelligent
ly regulated. The problem is not
production, but marketing"
What suggestion have you?"
Says Cooperation Is Answer.
Large scale cooperation market
ing associations for every agricul-
tural product with the object OF uI-
timately establishing an Intelligent
adjustment between production and
consumption"
You would arbitrarily try to fix
prices?"
mo. You assume in that question
that there are only two ways in
which prices are made-through mo-
nopolistic control or by an indis-
criminate throwing upon the market.
as at present, at whatever price is
offered by the we'll organized buyers.
There is a third method
Il do not deny the law of supply
and demand and it's influence upon
farm prices, but l do deny that il is
self-operating so as to preserve nice
ly perfect balance between sup
ply and demand. 1t does determine
the so-called normal price. Capital
Will not Indefinitely remain in any
industry which does not pay returns
proportionate to those in other indus
tries, SO the normal price can only be
determined after a series of years
The farmer in the meantime is ruined.
What Mr.. Farmer is interested in is