Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1936-08-20
People
Must Pay

N@ @OPsS government y
Must Pay tempts to interfere
with nature.
American farmers these days are
| threshing their wheat crop. The
production is that of reduced acre
age, an acreage that was planned
on theory by the Department OF
Agriculture. The result is that this
years American wheat crop will
approximate 640,O00,000 bushels.
That is about 145,000,0 bushels
less than the average crop during
the five years from 1929 to 1888.
The result is shortage.
| Department of Agriculture fig
ures indicate that the total wheat
crop in the world this year will be
/ something like 650,000,000 bushels
below the annual production. In
other words, the wheat crop is
short everywhere on earth and the
result is obvious.
In our own case, there is normal
ly a carry-over each year Of about
125, 100000 bushels but due to the
shortage of the crop this year that
carry-over is insufficient to make
up the needs of domestic consump-
ton.
Consequently, we soon will see
heavy importations of Canadian
wheat, wheat that can be blended
in milling with our own production
and a very satisfactory flour re-
suits. Yet, it must be remem-
bered that on all irnportations of
wheat from Canada or anywhere
else, tariff of AZ cents a bushel
must be paid. 1t is clear, therefore,
that consumers of bread must pay
that tariff because the importers
are going to pass that item of ex-
pense along as part of the cost Of
the flour. In addition to the short
age in the United States, Canadian
wheat production is reported to be
something like 100,000,000 bushels
under normal. There is sufficient
production in Canada to permit of
export, of course, but the shortage
is bound to be reflected in the
prices.
And mention of the price brings
us back to the Individual effect Of
the combination of acreage, re-
duced by government edict, plus
the act of nature in visiting a
drouth upon us. Scarcity always
results in higher prices. 1t is the
operation of the law of supply and
demand. The Roosevelt farm pol
icy has been predicated on the the
ory that scarcity would produce
higher prices and thereby add to
the farm income. But drouth and
other production hazards cannot be
predicted and, therefore, the Amer
lean people find themselves in a
position where the unpredictable
has happened and the farmers are
not getting the benefit of higher
prices on a natural and normal
production.
| There seems to be a stronger
demand for wheat now than at any
time during the
Industry last five or six
Opens Up years. It indicates
restoration of
buying power on the part of the
masses. In other words, industry
again is opening up to some ex-
tent and employing workers al
though the increase in employment
has been small thus far.
In consequence of this combina-
ton of circumstances, there is
now sellers market in wheat in
stead of a buyers market in wheat.
To say it another way, there are
more people seeking to buy wheat
than there are seeking to sell it
and the consumers of flour will pay
the bill. By way of contrast with
present conditions, it may be point
ed out that world wheat consunp-
ton has exceeded world wheat pro-
duction in every year except one
since 1929. In the 1882 crop year
there was slightly more wheat pro-
duced in the world than was con-
suned. The result of the steady
growth in consumption over pro-
duction in the last few years has
oeen to wipe out all Of the carry
over-wheat stored in bins and ele-
vators throughout the woodland
in every country users of wheat are
scraping the bottoms of their bins.
The tragedy of it all is that, be-
cause of the reduced acreage and
the drouth in the United States,
American farmers are not in a po-
sition to take advantage of the high
err prices thus established by the
sale of surplus wheat which
may have been accumulated if the
acreage had been normal.
Instead of the United States real
ly controlling the market for wheat,
we are in position where a good
many other countries may be en-
couraged to grow more wheat. The
natural and obvious results of this
will be to further curtai1 the outlet
for American wheat which so long
has been relied on by many foreign
nations that are non-producers OF
wheat.
I do not know how far the New
Deal intends to go in revising its
basic economic policy regarding