Evening star., 1926-10-21
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

suit Of that restricted production In
Europe was that, of our 1920 crop.
we exported, in the fiscal year which
ended June 80, 1921. 336,077.O 900 bush
els of wheat. The demand has less
ened year by year since then. until in
the last year. ended June 80. 1926. we
were able to export only 1O6. .12S,OOO
bushels. In 1921. we exported 1872
7SO 900 barrels of pork, and last year
only 457 Jos, 900 barrels
This and similar figures for other
crops show why our farmers, in spite
of the abandonment Of what is equiv
alent to 100000 farms, still have n
burden Of a surplus.
X y \
The demand of a certain element
among farmers that the Govern
ment should step in and handle their
surpluses, guaranteeing prices and
standing the losses in selling the sur
plus in the world markets. Ia resisted
by the administration on the ground
that 1t is socialistic and that II would
tend TO increase annual surpluses.
rather than cure the evils. The Gov
ernment has undertaken to meet the
crisis by lending 5000 900 900 Of Treas
ury funds, through the Farm Loan
finance the gradual marketing OF
their crops themselves, without dump
ing them upon a depressed market.
This may enable manv to hold over
the surpluses. but whatever profit or
loss accrues will go to the owners Of
the products and not to a paternal
Government.
An agricultural authority sums up
the situation as follows:
Summed up, 1t may be said that
the farms of the United States will
go into Winter, once more, with about
the same current resources as they
did last year. Improvement in the
economic situation Is in some degree
cumulative Such replenishment of
their productive plant as farmers
have been able to make during the
last two years-new barns, fences,
drainage, machinery and the like
means so lpuch added leverage for
some time to come.
Generally speaking. the farm bud
get Is once more balanced. For five
years, agriculture unquestionably
drew on it's accumulated resources I'm
order to keep going. 1t underwent a
distinct depreciation of capital. So
far as last year and this year are
concerned, however. current income
little to spare"
In plain English, by hard work. for
which the farm owner gets no pay
beyond what he eats, he Is able to
pay his hands and keep up repairs
Of fences and machinery.
Now comes a widespread agitation
throughout the South, advocating the
IF
Of cotton, to be contributed by the
owners, in order to balance supply
with demand and force up the price.
In Egypt, the cotton raisers are ap-
pealing to the government to forbid
the raising Of any cotton next year
In large section Of northern Egypt.
II cotton burning is resorted to. there
are indications that q similar destruc
ton of food surpluses may be adopted.
Yet millions of people throughout the
world, even now, are suffering for
food and clothing. which commercial
interests propose to destroy rather
than distribute.
The Eastern States of the United
States know little Of the distress OF
the farmers Of the rest Of the coun-
try. Here our two leading cash crops
potatoes and hay-are bringing
good prices this year. as they did
| last season. Fruit Is depressed in
price by the abundant yields. which
| make for the amelioration OF the
| ultimate consumer" without seri-
ously increasing the labor Of the pro-
| ducers.
The logic Of overproduction leads
| the Farmers National Grain Dealers
Association to go on record In opposi-
ton to the further opening Of new
agricultural areas through Federal
reclamation projects. This means
active opposition to the various
schemes for drainage and irrigation
pending before Congress. The associ-
alton claims to cover eleven States
from Oklahoma northward, and fits
officials have been in conference with
President Coolidge.
'lCopyrighh 1890. b. Psui '. oVuaaA1