Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-17

supply IOE tIe utAt SuCCecuAllB 40
months.
Forced Depression Called Evil.
1.-THE natural result of this procedure
is to depress the price on all agricul-
tural products. In addition to this,
there is deducted from the farmers
product every cost necessary or Incl
dental in getting it to market. The
freight is deducted; the salaries of those
engaged in representing the miller and
spinner in procuring their supplies OF
raw material also are deducted, taxes
are deducted, all expenses incidental to
preparing his product from the raw
state to the finished article is deducted,
while the things that he buys, all the
expenses incidental to preparing 1t in
the form in which he is TO ultimately
use 1t, are added; in word, the farm
ers of America, particularly those en-
gagged in producing what commonly are
termed the standard crops, grain and
textiles, pay all the costs incidental in
marketing his stuff and in the process
ing and marketing of what he buys.
Throughout the entire country, under
the present system of marketing farm
products, he Is forced to sell by neces-
sity in such comparatively short time
as to depress his own commodity first,
and second. having all the costs de-
Quoted from the already depressed
prices and then to buy with all the
costs and profits added to what he pur-
chases. r~44 % i.
I'm a word, the problem of the farmer
Is not in production. It is not so much
in the skill and scientific development
of the processes of production: the
solution of it ultimately must come by
the farmer having the same bargain
ing power In the market places as those
who buy his products.
Until there shall have been made
process by which he may add all the
overhead costs plus reasonable profit
and can so distribute his sales that he
can supply the market at price which
will cover these the farm problem will
be az st has been through the ages, a
perennial one.
Consumption Figures Known.
zone of the difficulties that has
added to the farm problem heretofore
was the lack Of facilities for conmuni-
cation and transportation. These have
been practically eliminated The tele-
phone, telegraph and now the radio
have brought all the world instantly
together. Steam, electricity and gas
have revolutionized transportation.
The conditions existing throughout
the world as to the probable consump-
ton, of any given article or any given
product can be known instantly SO that
1t would be possible for the wheat
growers of America to know the needs
of the world for American wheat and
what prices he might demand. The
c q G If
These facilities for transportation
and communication should be available
for the farmer as they are for other
trades and industries and the costs of
their using charged in the prices that
he should receive so that in the last
analysis. the American farm problem
resolves itself into the solution of these
factors. How to organize and finance
his business as TO give him the power
to fix his price so as to absorb the
cost Of production, plus a reasonable
profit.
Tariff Considered Faulty.
"It is idle to speak of the tariff as
beneficial to the farmer SO long as he
has no power to fix the price of his
product SO as to benefit by the tariff
So long as the buyer of his article has
the power to fix the price at which he
sshall buy, he can and has and will
ignore any tariff that may be placed
on the farmers product.
"A Few years ago, We passed an
emergency tariff act increasing the duty
OF wheat AZ cents bushel and wheat
went down something like 40 cents a
bushel. The industries of this coun-
try are and have been so organized and
combined that they can and have and
do profit practically to the full extent
Of the tariff. They have practically
eliminated competition in the quality
quantity and price of their products
and the only question with them is
production to meet the demands of the
American consumer at the tariff raised
prices.
Il will not say that the elimination
OF all foreign farm products might not
In the speculative market help the
farmer, but 1t would be a very indirect
help because his prices would not be
the measure of his needs, but the rela-
tive strength or weakness of the specu-
lative element in the market that has
no regard for him whatever. And as to
cotton. tariff could not aid at all
because the price of American cotton
fixes the world price.
Problem Tremendously Difficult
The enormous number engaged in
farming. the different conditions under
which individuals comprising this mass
operate, their unorganized condition,
their lack of adequate finances and
organization to market their product,
the difference In the sizes Of the farms.
makes the problem tremendously diff
cult one. but 1t can and must be solved.
1T win take a resolute determination
on the part of the Government with the
full support and cooperation of the
farmers to solve this problem. 1t can
not be solved in a day nor year, but
the foundations can be laid upon which
an ultimate solution will be achieved
and a measure of immediate relief OBJ
tanned. The farm problem is not a new
one.
1T has been rendered more acute and
pressing since the World War and par
ticularly since defiation In 1920. The
plane of living has been tremendously
raised In comparatively few years.