Evening star., 1926-12-07
Presidents Message Shessng Underlying Causes Of S. Prosperity

industry. The wide gap that existed
few years ago between the index
price of agricultural products and the
index price Of other products has
been gradually closing up. though
the recent depression in cotton has
somewhat enlarged 1t.
Agriculture Going Higher.
Agriculture had on the whole been
going higher while industry had been
| going lower. Industrial and COM
mercial activities, being carried on for
the most part by corporations, are
taxed at a much higher rate than
farming, which is carried on by indi-
viduals. This will inevitably make in
dustrial commodity costs high while
war taxation lasts. 1t is because of
this circumstance that national tax
reduction has very large indirect
benefit upon the farmer. though it
cannot relieve him from the very
great burden of the local taxes which
he pays directly. We have practically
relieved the farmer of any Federal in
| come tax.
There is agreement on all sides that
some portions of our agricultural in.
dustry have Jagged behind other in
dustries in recovery from the war and
|
| Of marketing of agricultural products
is most desirable. There is belief also
| that the Federal Government can
/ further contribute to these ends
beyond the many helpful measures
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 pur-
poses.
| The Purneli act for agricultural re.
search.
The Capper-Volstead cooperative
marketing act.
The cooperative marketing act Of
1929
Amendments to the warehousing
| act.
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 high.
ways.
The reduction of Federal taxes
| in all comprise great series Of gov
ernmental actions in the advance
ment Of the special interest Of agri-
! culture.
| In determine ton of what further
measures may be undertaken it seems
to me there are certain pitfalls which
must be avoided and our test in avoid.
ing them should be to avoid disaster
to the farmer himself.
| Acting upon my recommendation.
the Congress has ordered the Inter.
| cfotA
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 consolidation,
which / am advocating, would also
| result In situation where rates could
be made more advantageous for farm
produce, as has recently been done in
the revision of rates on fertilizers in
the South. Additional benefit will ac-
crue from the development Of our in
land waterways. The Mississippi
River system carries a commerce of
over 5O.000.000 tons at saving of
nearly $1S.OOO,O0O annually.
Highway System Vital.
The Inland Waterways Corporation
operates boats on $500 miles Of navi-
gable streams and through it's rela-
ton with 1865 railroads carries freight
into and out Of 45 States of the Union.
During the past six months it has
handled over 100000 bushels Of
grain monthly. and by it's lower
freight rates has raised the price Of
such grain to the farmer probably
PA cents to 3 cents a bushel. The
highway system, on which the Fed
eral Government expends about $685.
| 900 900 a year. is of vital Importance
| to the rural regions.
The advantages to be derived from
| a more comprehensive and less eX-
pensive system of transporta ton for
agriculture ought to be supplemented
| by provision for an adequate supply
OF fertilizer at lower cost than it is
at present obtainable. This advantage
we are attempting to secure by the
proposed development at Muscle
Shoals. and there are promising ex.
periments being made in synthetic
chemistry for the production of nj
trateS.
A survey should be made of the
relation Of Government grazing lands
to the live stock industry. Additional
legislation is desirable more definitely
to esta blish the place Of grazing in
the administration OF the national
forests. properly subordinate to their
IuIclIOnS OI pTOuuClI1S C1nDor ana
conserving the water supply.
Over 100000 900 acres of grazing
lands are still pastured as commons
in the public domain. with little or
no regulation. This has made their
use so uncertain that 1t has contrib.
uted greatly to the insta bility of the
live stock industry. Very little of
this land Ia suited to settlement or
private ownership. Some plan ought
to be adopted for it's use in grazing,
corresponding broadly to that already
successfully applied to the national
forests.
The development of sound and
strong cooperative associations is of
Fundamental Importance to our agri-
culture. 1t Is encouraging to note,
therefore, that a vigorous and healthy
growth In the cooperative movement
is continuing. Cooperative associa.
tions reporting to the Department of
Agriculture 1t the end of 1925 had on
their membership rolls a total of
2,700,0 900 producers. Their total busi
ness in 1925 amounted to approx
mately $2.400. 900 900. compared with
$635, 5000 in 1915.
Legislative action to assist co-opera-
tive associations and supplement their
efforts was passed at the last session
of Congress. Important credit meas
ures were also provided by Congress
in 1923 which have been of inestima-
BILE value to the cooperative associa-
tions. Although the Federal credit
agencies have served agriculture well,
l think it may be possible to broaden
and strengthen the service Of these
institutions.
Attention is again directed to the
surplus problem of agriculture by the
present cotton situation. Surpluses
often affect prices of various farm