Evening star., 1927-12-06
Presidents Message Lays Peace and Prosperity Enjoyed BY

disaster. A Government subsidy
would work out in the same way.
1t can not he sound for all of the
people to hire some of the people
to produce a crop which neither the
producers nor the rest of the people
want
Price fixing and subsidy will both
increase the surplus. instead Of iii
minishng it, Putting. the Govern
ment directly into business is merely
a combination of subsidy and price
fixing aggravated by political pres
sure. These eXnedients would lead
logically to telling the farmer by law
what and how much he should plant
and where he should plant it. and
what and how much he should sell
and where he should sell it. The
most effective means Of dealing with
surplus crops is to reduce the sur
plus acreage While this can not he
done by the individual farmer, 1t can
he done through the orga nizations
already in existence. through the in
formation published by the Depart.
ment of Agriculture, and especially
through banks and others who sup.
ply credit refusing to finance an acre
age manifestly too large.
1t is impossible to provide by law
for an assured success and prosperity
for all those who engage in farming.
If acreage becomes overextended the
Government cannot assume RESPONSE
bility for it. The Government
can, however. assist cooperative
asSoCia tions and other organiZa
tionS in orderly marketing and
handling n surplus clearly due to
weather and seasonal conditions. in
order to save the producer from pre-
ventabe loss. While it is probably
impossible to secure this result at a
single step, and much will have to
to worked out by trial and rejection,
q beginning could I've made by setting
up Federal board or commission Of
able and experienced men in market
ing. granting equal advantages under
this board to the various agricultural
commodities and sections OF the
country. giving encoura cement to
the cooperative movement in aeri-
culture, and providing revolving
loan fund at "A moderate rate OF in
terest for the necessary financing.
Such legislation would lay the foun-
dation for a permanent solution OF
the surplus problem.
This is not proposal tn lend more
money To the farmer. who is already
fairly we'll financed. but to lend
money temporarily to experimental
marketing associations which will no
doubt ultimately he financed by the
regularly established banks. as were
the temporary operation of the War
Finance Corporation. Cooperative
marketing especially would be pro
vided with means Of buying or build
ing physical properties
The National Government has al.
most entirely relieved the farmer
from income taxes ky successive tax
reductions. but State and local taxes
have increased, putting on him a
grievous burden. A policy of rigid
economy should he applied to State
and local expenditures. This is clearly
within the Legislative domain Of the
States. The Federal Government has
also improved our banking structure
and system Of agricultural credits
The farmer will he greatly benefited
hy similar action in many States. The
Department of Agriculture Is under
going changes in orga MIA ton in or
der more completely to separate the
research and regulatory divisions.
that each may he better admins
tered. More emphasis is being placed
on the research program. not only
by enlareing the appropria tions for
State experiment stations but by pro-
viding funds for expanding the re.
search work Of the department. 1t Is
in this direction that much future
progress can be expected.