The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-03-12
The Farm Board So Far
tChristian Science Monitor)

IAAOO NACASNC WSAAAoSA(
Or July Is, 1923, the federal farm board was consti-
tuted with the broad objective of placing American agri-
culture on a basis of equality with other industries. The
world has been watching the experiment with undated
interest. Naturally, the immensely of the problem, which
besets all modern states, precluded any quick solution.
And the first year was unpropitiOus for any experiment
in price fixing, for the board came into existence on
the eve of a worldwide decline in prices which had a
momentum immeasurably stronger than any counter
acting effort it could muster.
But the board has a distinct achievement to its credit
In the impetus 1t has given to farmer organization. Agrl-
culture is the last refuge of individualism in a world OF
increasing collectivism. Not only is this a great handi-
cap. but, having a world market, most farm products
are subject to world prices, which are at the mercy OF
all manner of circumstances. Moreover, the time-lag
between planting and marketing besets the farmer with
risk and speculation.
ance of a fair monetary return for agriculture. Accord
ingly, the constructive activities of the board have cen
tered in building up cooperative marketing associations.
For that work it is entitled to much credit.
The farm board has constantly advised the reduction
of acreage so as TO reduce the possibility OF surpluses
which drag down prices. In the meantime it has elected
to tackle the price problem created by tnese s1lp'u sed
Subsidiary to the organization of cooperatives, the emo
sought by congress, in the Interpretation OF the boaro, Is
to moderate or eliminate undue and excessive" fluctua-
lions in prices. In other words. the board should act
toward agriculture as the federal reserve system acts
toward the money market-as q cushion for the SHOCKS OF
severe readjustments. For this purpose It was endowed
with a revolving fund of $500, 00,O00. It has used all
but $780, 0 0,00O.
The ~cushioning of the shock Of falling prices by loans
to farmers on wheat was supplemented by the entrance
into the market of the Grain Sterilization CORPORATION,
which, together with the cooperatives affiliated with It,
held control at the end of the first year OF q quantity
Of wheat equal to approximately ore-half of the visible
supply. On June 80 it owned over 100000 bushels OF
wheat and futures. and today holds more than ~12O,O0O.OO0
bushels, acquired at substantially higher prices IMAM
prevail at present.
AS in wheat, so in cotton, and with the same results.
Cotton prices are now around 9h cents q pound, as COM
| pared with nearly double that amount, or 1871 cents, IA
August, 1929. Cotton operations of the board went
! through the same phases as It's wheat operaNons-from
| loans. on a lucent basis to the establishment OF q stann-
ization corporation to withdraw cotton from the market.
On the basis of these two major activities much ques-
tioning has arisen in many quarters as to whether TINS
agricultural cushion Is worth the price that WIN p1on-
ahly have to be paid for 1t. No lack OF sympathy ioz
the position Of agriculture is involved in these doubts
The point Is: Is this the right way to put agriculture
On q basis Of economic equality with other industr1es3
Il u true that 20 far the operations Of the farm board
have been conducted in the teeth Of : business depres-
Ion, Yet the lesson Of experience Is that pr1ce-ffxana
as applied to commodities having . world market :
economically unsound and socially unwise. British ano
brazilian valorization Of rubber and coffee. respecfively
are outstanding ~signposts Of the course that Seems
destined for American wheat and cotton as long IS 8
world market is desired for these commodities.