Evening star., 1927-11-13
Business Mems Commission Presents
Views on Problems OF Agriculture

by in reaslng foreign competition
through Keeping European farm
workers at home or diverting them To
newer agricultural countries Fur
therino.e. quota restriction In all like
lhood has deprived American agrf
culture of types Of immigrant farmers
who by long experience and tradition
| are well qualified tn farm successfully
and may have tended to depress agri
culture as a whole by the free athnis
sion of low-standard farm labor.
Tariff IA Obstacle.
The shifting OF the United States
from the position OF debtor TO that
Of creditor nation i'm international
transa ctions, the steady extension Of
tariff protection to the manufacturing
industries and the increas" in the tar.
III level in postwar years have fur
ther tended to inrfeasa TIL" difficulties
fCf American agriculture. both in re.
spect to the foreign market for it's
products and it's cost Of production.
Tho enormous incrs1se in govern
mental and private foreign indebted
ness to the United States has com
peTed. the debtor nations to reduce
their imports. increase their exports
md become more seif-suflicient in re
spect to agricultural products. The
fun effect of this change has been de
ferred hy continual foreign loans. but
tho decreased purchasing power OF
foreign markets for American. prod
ucts has been more seriously felt by
the farmers than by other industries.
and the effect Of our creditor position
in this RESPECT is likely to be more ap-
parent in the future.
go The conditions cited. which have
arisen in recent years. have combined
with certain other factors which have
been in evidence for longer period
to make FOR persistent agricultural
dcpressiUn.
The decline If FOR capita consump.
ton of certain goods. due 10 urhaniZa-
ton and changed occupations, as we'll
rs changed dietary habits and new
methods i'm the preparation ana distri-
button Of foods. the substitution 0f
mechanical for animal power 0fi farms
and in cities, changed clothing h1hits.
together with the development of suh-
stituteS for textiles. Al have combined
to reduce the domestic consumption Uf
farm products.
Declining foreign and domestic dc.
mn nd for farm products has followed
a icng period OF persistent ovcrrxttan
sion Of farm acreage due to the long
the abundance Of available land. gov
ernmsntal and private land settlement
poii6ies. rising lard values and the
ever r-prescnt tendency toward specua-
ton i'm farm real estate. This un
sound expansion of production and
the unsound forms Of land tenure ac.
compa anyin- it have contribut"d to ex-
p,oi.ation and wasteful use 0f our soil
resources. -
Conditions Reflected.
Conditions sucl, as these have tend
cd To bear especially heavy on agricul-
ture because Of the low gross return
Of the, average farm enterprise. it's
increasing cohimefc.aifzation or de-
pandonre on market conditions accet1-
! ttiated by excessive rcgu'at lion of prod
uce exchanges. its lack of advantages
of economies in production and mar.
ketins which organization has made
possible in other fields. its slow adjust
ment to changing economic require.
ments and the rapidly increasing com
parative economic advantage of the
Misunderstanding industries in the
United States reflected In the declin-
ing role played by farm products in
| our export trade.
Some of thesa factors are clearly to
be regarded as aspects of the post
var adjustment process. 1t appears
that the worst phases OF postwar re.
adjustment in agriculture are over.
Prices Uf farm products shav', ,sen
since 1J23. due to contraction of acre
age ard decrease in the nunbe. ns
farmers. while prices of manufactured
goods have tended to decline owing to
increased productive efficiency and in
tansiye competition. ReadjuStment To
postwar conditions, however. should
not be allowed 10 obscure the larger
problem of securing a balanced and
stable relationship between a2rieul-
ture and other industries and Of
achieving some sound adjustment to
the deeper lying forces which over a
long period of time have tended per.
| s;stently to depress the relative eco.
1oUiiC position OF the farmer.
The findings and dsrecommendatio tions
herewith made public*a ere the commits
sions own conclusions and We're ar.
| rived at Independently OF the two or.
ghnisatDfis which created the commits.
son. that is the National Industrial
Conference EOa rd and the Chamber OF
| ch'nmeics OF the United States
The following served as members
of the commission: Charles Nagel.
chairman. of Na.el & Kirby. St Louis
IL. \. brown chairman Of the board,
At. Louis Sab Francis%,o Railway TO-.
New York City: T.. NJ. Kerr. president
Westinghouse E'ectric 4 Manufacture
Ing Co. New York City: J. q. Ions.
dale. president National Bank of Com.
mefce. st. Louis: A. +. McKissiek. vice
president Alice Mills. Greenville. s. c.:
Clay Miller Of Cay Miller 4 Co. San
Francisco. railf.' Arthur r. Rogers,
president Rogers Lumber Co.. Mime.
apolis: John stuart. president Quaker
Oats Co. Chicago; Alfred Swayne. vice
president General Motors Corporation.
New York City: Paul M. Wariurg.
chairman international Acceptance
Corporation. New York City.