The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-01-27
Editorial Comment
But a Loan Can't Eat Butter
(Minneapolis Journal)

The Farm boards designation Of the Land oIakes
creameries to handle a Sterilization loan that may reach
1-,cO0yO0O ~brightens the present economic prospects of
many thousands Of dairymen throughout the West.
But a Frightening Of present economic prospects Coes
economic prospects. The butter industry's present plight,
the depression which has carried selling prices below pro-
nor to foreign competition, but to the failure Of Ameri-
cans to consume butter as rapidly as they are now prod
uo:c; butter.
A large government loan, 1t is true. makes possible the
!: ION Of immediate market pressure. But If the but
tr surplus continues to grow, then relief through govern
M. credit merely ~postpones. rather than does away
with, the day of reckoning.
And this is something that is now recognized both BY
the Farm board and the organized dairymen. Both
3rc"..s are aware that permanent prosperity for Ameri-
can dairying can rest only on a matching OF, domestic
production and consumption. This can be achieved by
latter method is much to be preferred: for m~anifestly
the farmer can make r.ore money selling a large produc-
ton OF butterfat at a profitable price than by selling a
reduced production at a profitable price, though he can
m e no money at all by selling either a large or a
reduced production at an improbable price.
How, then, to increase butter consumption in America?
One way is to induce the use Of more butter and less
butter substitute. not only in the cities and towns. but
also on the farms. The Farm board and other agencies
have recently pointed out that stores whose customers
are mostly dairy farmers sell more oeomargarine
than tutter. AS william F. schilling, Farm board n n
to a considerable extent. for this situation. A great many
6: t. I'm are losing dollars on cream in order to save ZEN
But they are not entirely to blame. as J. c. Morrison
points out in the Morris Tribune. Studying retail store
advertising in numerous dairy towns. MI. Morrison finds
plenty Of mention Of butter substitutes, but little or no
mention Of butter itself. the product on which the ZANE
towns largely depend for their own prosperity. There
can be, ard there doubtless will be, intelligent campaigns
+ these dairy farm towns promote the consumption
Of butter. both in the villages and on the surrounding
farnsteads. With the price spread between real butter
and butter substitutes narrower Just now than It has
been for q long time, there never was q better opportunity
for I, tn. t missionary work to convert margarine cat
5ers into butter eaters. M
But the failure Of the farm to consume its due share
OF butter Is not the sole reason for q bulging surplus.
Tie pr--I.t bothersome GAL. In the consumption Of but
ter substitutes over butter consumption has been ~ no
means confined to the rural districts. The nottingham,
IN areas Of industrial depression, cannot afford the nut
ter he formerly bought for his family.
The dairyman produces = commodity that Is In the
semi-luxury class II millions Of urban households. These
households buy butter only when wages are good and
employment certain. How utterly foolish, then, from
the datrymans own standpoint, was the demand heard
hc--- ,ou.s last year that the agricultural West. throueh
the Coalitions control of the Senate, wreak vengeance
Oh the industrial East ~ slashine existing industrial
to- rates "al along tho line.