Douglas daily dispatch., 1926-12-08


which fails to supply a fair return
on labor expended and capital in
vested. While some localities and
some particular crops furnish ex-
eeptions, in general agriculture is
continuing to make progress in re-
covering from the depression of 1921
and 1922. Animal products and food
products are in a more encourag-
ing position, while cotton, due to
the high prices of past years sup
plemented by ideal weather condi-
tions, has been stimulated to a
point of temporary over production.
Acting on the request of the cotton
growing interests, l appointed a
committee to assist in. carrying out
their plans. AS result of this
cooperation sufficient funds have been
pledged to finance the storage and
carrying of 100000 bales of cotton.
Whether those who own the cotton
are willing to put part of their
stock into this plan depends on them
selves. The federal government has
cooperated in providing ample facil-
tiles. No method of meeting the
situation would be adequate which
does not contemplate reduction of
about one-third in the acreage for
the coming year. The responsibility
for making the plan effective lies
with those who own and finance
cotton and cotton lands.
The department of agriculture
estimates the net income of agri-
culture for the year 1920-21 at only
1876, 900, 900; for 1924-25g $2,656,O0 100000;
for 1925-26, $2,757 70O0,O00. This in
crease has been brought about in
part by the method already referred
20, of federal tax reduction, the
elimination of waste, and Increased
efficiency in industry. The wide gap
that existed a few years ago between
the index price of agricultural prod
ucts and the index price of other
products has been gradually CLOSING
up, though the recent depression in
cotton has somewhat enlarged it.
Agriculture had on the whole been
going higher while Industry had
been going lower. Industrial and
commercial activities, being carried
on for the most part by corporations,
are taxed at a much higher rate
by individuals. This will inevitably
make industrial commodity costs high
while war taxation lasts. 1t is be-
cause of this circumstance that ma
tional tax reduction has very large
indirect benefit upon the farmer,
though it can not relieve him from
the very great burden of the local
taxes which he pays directly. We
have practically relieved the farmer
of any federal income tax.
There is agreement on all sides
that some portions of our agricultural
industry have Jagged behind other
industries in recovery from the war
and that further Improvement in
methods. of marketing of agricultural
products is most desirable. There is
belief also that the federal govern
ment can further contribute to these
ends beyond the many helpful meas
ures taken during the last five years
through the different acts of congress
for advancing the interests of the
farmers.
The packers and stockyards act
Establishing of the intermediate
credit banks for agricultural purposes
The Purnell act for agricultural
research.
The Capper-volstead cooperative
marketing act.
The. cooperative marketing act of
1926.
The enlargement of the activities
of the department of agriculture
Enlargement of the scope of loans
by the farm loan board.
The tariff on agricultural products.
The large federal expenditure in
improvement of waterways and
highways.
The reduction of federal taxes.
In ALL these compromise a great
series $of governmental actions in
advancement of the special interest
Of agriculture.
In determination of what further
measures may be undertaken it seems
to me there are certain pitfalls which
must be avoided and our test. in
avoiding them should be to avoil
disaster to the farmer himself.
Acting upon my recommendation,
the congress has ordered the inter
state commerce commission to in
Vestigate the freight-rate structure,
directing that such changes shall
be made in freight rates as will
promote freedom of movement of
agricultural products. Railroad con-
solidation which l am advocating
would also result in situation
where rates, could be made more ad-
Vantageous for farm produce, as has
recently been done in the revision
~ IN, h., l.
Additional benefit will accrue from