Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-15

the trade when the market is active
regardless of the price to the consumer;
duplication of service and, excessive
handling are not checked effectively
and, very important, profits from mer-
chandisfng service are determined
largely by the volume handled and not
by the price the producer receives.
Adjustment of production to probable
marketing requirements is regarded by
the Farm Beard as fundamental. The
declared purpose of the agricultural
marketing act is to place agriculture
on a basis of economic equality with
other industries. This can be accom-
plished only if agriculture follows the
most basic principle of other industries,
which is to regulate production to the
quantity and quality that can be mar
keted at satisfactory prices. No matter
how good the marketing system, 1t is
ineffective when there is a surplus far
in excess of the consumer demand. One
of the duties imposed upon the Farm
Board by Congress is to study the over
production of agricultural commodities
and advise growers as to the proven
ton of such overproduction," the theory
being that it is better not to produce a
surplus than to produce one and then
try to control it.
Gradual REDUCTION
Acting on the best available infor-
nation as to the world wheat outlook,
the board has recommended that pro-
duction be reduced gradually over a
period of years to the quantity that can
be consumed in the domestic market.
This was done because we believe from
the facts before us that the world mar
ket level in the next few years will be
unsatisfactory to the American grower.
Some of the other exporting countries,
including Russia, are increasing their
production, notwithstanding the fact
that there already is a burdenSome
world surplus. So long as the Ameri-
can grower produces substantially more
than can be sold at home, he will have
to be content with the world price for
his entire crop. AS a permanent propo-
sition there is no effective way for him
to dispose of the surplus abroad with
out that action affecting the domestic
price level.
Despite the fact that most Of the
importing countries of Europe the past
year have indicated Enthusiastically that
they will not tolerate the extensive
dumping of agricultural products on
their markets, there are those in this
country who continue to agitate the
adoption of a plan to subsidize the ex-
theory is that by such action the tar
if can be made effective In the domes-
tic market to about the extent of the
export subsidy. But, like the United
States, these nations have farm prob
lens of their own and can be counted
upon to protect their growers, just as
this country protects its growers against
dumping from abroad. Even though
dumping were permitted, the stimu-
lated rush of. exports from this coun-
try would have depressing effect on
the world price level, probably as much
as the amount of the subsidy, thereby
defeating its very purpose.
Russia Dumps Wheat.
What can happen when a compare
lively small quantity Of wheat is
dumped on an unwilling market was
amply demonstrated in Europe last Fall.
Russian activities along that line were
largely responsible for demoraliZing the
world market and necessitating a re-
newal of the wheat sterilization oper-
atoms the middle of last November to
prevent further effects of that collapse
from being felt in our own market.
I would like to suggest to our wheat
growers and other agricultural produc-
ers that the desired result cannot be OBJ
tanned at the expense of agricultural
producers in other countries. which is
contemplated in the various proposals
to subsidize the expectation of our
crop SURPRISES, but requires action on
the part of our growers. They must
make whatever adjustments in produc-
ton that are necessary and this can
be accomplished on an equitable basis
If they are properly organized.
In the DEVELOPMENT OF the Nation