Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-05

Of this country. In the first place, each
contemplates substituting disposal Of the
surplus in foreign countries, Such &C.
! ton Is nothing more nor less thar
dumping. Most Of the importing coun.
tries have countervailing duties or othel
restrictive measures, some going to the
extent OF an embargo, against the dump
ing on their markets of imports at prices
below those in the country where the
commodity was produced. One thing tc
be remembered Is that the larger i'm
porting countries have their farm prob
lens the same as we have farm
problem.
Depressed Prices Foreseen.
I'm the second place, the dumpirx OF
large quantities of wheat on folSIgu
markets such as would result from op-
Grafton of either the equalization fee OF
debenture plan would tend to depress
the world price. The economists tell us
that the amount of this depression very
likely would equal or exceed the subsidy
and thereby defeat the whole purpose
OF that subsidy. It will do no good to
make the tariff effective on commod-
lily II at the same time you depress the
world price by the amount of the tariff.
The way to help the grower Is for the
tariff to be made effective on his COM
modify without interfering with the
world price level.
Sterilization efforts, in our opinion,
can cope successfully with seasonal
surpluses such as might be produced
by an especially heavy crop yield in
any one year. If our production were
well ba1anced-that is to say, a uuanti-
ty that was in line with the market
demand-it would be reasonable to
state that the years of underproduc-
ton would Offset the years of overpro-
duction, but 1t Is quite impossible to
make this apply to a cumulative, con-
stantly increasing surplus such as we
have had since 1925.
Among the duties imposed upon the
Farm Board by the agricultural mar
keting act are these:
To keep advised from any avail
able sources and make reports as to
crop prices, experiences, prospects, sup
ply and demand, at home and abroad.
To investigate conditions of over
production of agricultural commodities
and advise as to the prevention of such
overproduction.
"You will thus readily see that IL Is
our duty to give to the American farm
er the information you have Just heard.
In addition we think it far better to
tell the grower these facts as they are
rather than to let him 60 blindly still
deeper into what appears to be an i'm
possible situation, namely, to compete
in the market of the world with Amer
ican-grown wheat and Still expect to
get a price comparable with the gen.
eral price level and standard of living
in this country.
1T is our considered Judgment that
there is just one way that the Ameri-
can farmer can hope to get a profit
able price for his wheat, and that is
Tor production in this country to be
adjusted downward so that 1t will not
exceed domestic requirements. That
is necessary II tariff protection is to
be effective. Once this Is done, in
creased production elsewhere in the
world will make no difference to our
producers, for Congress can be relied
upon to afford them whatever protec-
ton may be required for them to MAIN
tain their place with other groups in
this country. Accordingly we are rec
ommending to farmers q gradual slow
ing down of production with the object
OF eventually balancing our production
with domestic consumption.
Remedy Is Suggested.
I'VE have given the facts TO the
growers in regard to wheat acreage
adjustment and suggested the remedy.
what Is accomplished depends pretty
largely upon their willingness to act
when 1t Is demonstrated to them that
they VIII get more for producing less.
While some progress is being made in
curtailing wheat production we feel
that growers will not get the full bene-
fits OF such action until they are or
gained. In position to act collectively,