The Washington times., 1926-12-07
PRESIDENT COOL DGES TWELVE COLUMN REVIEW OF PROSPEEll

on themselves. The Federal Gov.
eminent has co-operated in pro.
viding ample facilities. No meth.
Cd Of meeting the situation would
be adequate which does not con-
template e. reduction OF about one.
third In the acreage for the com.
ing year. The responsibility for
making the plan effective lies
with those who own and finance
cotton and cotton lands.
Farm Incomes Increase
The Department OF Agriculture
estimates the net income OF agrl.
culture for the year 1927 az
only $375 900 900: for 1870, 30
csc, 000.000 for 1858. 81. IVY,
900. This increase has been orous q
about in part by the method az
ready referred TO-. OF Federal TAX
reduction. the elimination OF Waste
and increased efficiency ~ ndus'
try. The wide gap that exlstedE
few years ago. between the iaiasA
price OF agricultural products ana
the index price OF other produ
has been gradually closing ups-
though the recent depression N
cotton has somewhat enlarged Y.
Agriculture had on the whole neeil.
going higher while Industry nae
been going lower. Industrial ana
commercial activities. being car.
ried on for the most part By cor
noraftons. are taxed at g raucn
higher rate than farming. which
Il carried on by individuals. This
viii inevitably make Industrial
commodity costs high while war
taxatfon lasts. It is because o.
this circumstance that national
fax reduction has q very large III
direct benefit upon the farmer.
though il cannot relieve him from
tina very great burden Of the local
taxes which he pays directly. we
have practically relieved the
farmer Of any Federal income tax.
Government Can Aid
There Is agreement on all sides
that some portions Of our agrl-
cultural industry have Jagged be;
hind other industries IN recovery
from the war and that further I'M.
nroyement in methods Of market.
ing 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 Con.
gress for advancing the interests
OF the farmers.
The packers and stockyards act,
Establishing or the intermediate
credit banks for agricultural pur.
Ths =. Rurnell act f0i agricultural
the capper. voIstead co.upera.
tive marketing act.
The cooperative marketing act
Amendments to the warehousing
The enlargement OF the activi
ties Of the Department OF Asricul-
Enlargement OF the scope Of
loans BY the Farm Loan Board,
The tariff on agricultural prod.
ucts.
The large Federal expenditure
in Improvement of waterways ana
highways,
The reduction Of Federal taxes.
in all comprise aNgreat series o.
governmental actioAs II ttie al
vancement Of the spAcidl interest
or agriculture.
III determination Of what Iur-a
Their measures may be undertaken
1t seems to me there are certain
pitfalls which must be avoided
and our test in avoiding them
should be to avoid disaster TO tie
farmer himself
Freight Rate Probe
acting upon my recommends
ton. the Congress has ordered
the interstate Commerce Commits.
sion to investigate the freight
rate structure, directing that sucn
changes shall be made in freight
rates as will promote freedom OF
movement Of agricultural pro"
ducts. Railroad consolidation
which / am advocating would
also result in a situation where
rates could be made more adj
vantageous for farm produce. as
has recently been done in the
revision OF rates on fertilizers In
the South Additional benefit will
accrue from the development OF
our inland waterways. The Mis-
sissippi River system carries a
comnerce OF over 50.000,000 tons
at a saving Of nearly $1S,O0O,OOO
annually. The Inland Waterways
Corporation operates boats on
$500 miles OF navigable streams
and through its relation with
1855 railroads carries freight into
and out Of forty.five States OF the
Union. During the past six
months It has handled over