The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1931-03-07
An English View Of American
Farm Relief
(Neu, vnrk Times

New York TimeS)
Operations Of the federal farm board, as described IN
its first annual report, were far from satisfactory. The
farmers seem ungrateful for a form Of relief which has
not yet relieved. Remote from the heat Of Chairman
server in Lombard street, the Anglo-International Bank,
reviews this second American experiment." 1t con-
cedes that the plan of organizing the farmers was "for-
mally sound" though it points out that the unorganized
farmer, by means of the radio and otherwise, may con-
.stantly keep in touch with the market. One duty OF the
board imposed by the agricultural marketing act IS to aid
in preventing and controlling SURPRISES in any
agricultural commodity, through orderly produc-
ton and Distribution, so as to maintain advan-
tageous domestic markets and prevent such sur
pulses from causing undue and excessive fluctua-
tons or depressions in prices for the commodity.
According to Lombard Street, the administration mis-
judged prices in 1929. It took the view of the farmers.
The board should lend to cooperativeS and the Grain
Sterilization Corporation for the purpose Of holding crops
off the market only when the price is "exaggeratedly"
low. Such a price is sure to rise sharply and before long.
Steadiness Of prices IS to the general advantage. It Is
AN entirely good thing" that farmers should be enabled
to withhold supplies from the market when prices are
exaggeratedly low. The farm board made an incorrect
judgment to start on. With some h~esitations and renun-
Citations it continued to do the wrong thing. It will be
remembered that 1t admits that its major error" was
its inability to foreSee "the extraordinary contraction
of import purchases" of wheat.
The surest sign of the defeat of the boards policy Is
that
at present, with its large stocks Of wheat and
cotton. it appears to potential buyers as .
potential seller, whose sales may put prices fur
tlleI uOWN. rdIulc1S 1UOuSuOut Vic WIN AlA6As
thus claim that in trying to help their own farm
ers the American administration has made the
prospect more risky for everybody.
With one hand the board gives out advice to re-
strict crops. With the other 1t lends money that seems
an invitation to enlarge cultivation:
When the competent farmers are planning to
win through the difficulty Of diminishing sales
by improving the quality Of their output, the less
competent have thus been encouraged to increase
their output and to make up their losses by sell
Ing It on . falling market. The farm boards
loans have thus encouraged the less competent to
do just what. In its publications. it has warned
the competent against doing. Such encourage
ment to the incompetent Is the effect that needs
to be most carefully avoided by the planners OF
organized markets. whether the plan be q farm
board or q customs tariff. Another example Is
thus given to those who like to argue that states
always bungle plans for economic .betterment.
Whatever merit there may be in these London opin'
ions, they will not commend themselves to the Repub
Ncen right, centre or left. The implied sneer at thu
magical mother Of prosperity cannot be forgiven; ant
even to mention those impatient sinners who wan
to keep an al-wise government out Of business is II
bad taste. II not positively immoral