Evening star., 1936-12-13
:TAR|FFSDECLARED
:: H|NDER|NG FARMS
Economist Says Foreign
karts Must Be Opened
to Avoid Low Prices.
BY BLAIR BOLLES.

The United States ana the rest OF
the world must level their tariff bar
riers before Americas 5000, 900 farm
ers, whose income in 1896 will total
$3.50, 900, 900, can enjoy permanent
prosperity, an influential adviser of
Secretary Wallace told his chief yes
terday.
Even though the farmers are max
ing II per cent more money this year
than In 1885 and 81 per cent more
than in 1882, the bugaboo Of possible
surpluses In the future, driving down
prices, remains unless foreign markets
are opened wide. and we at the same
time welcome goods from abroad,
DR.. A. G. Black, chief of the Bureau
Of Agricultural Economies, declared
In his annual report.
I'VE continue to have an agricul-
tural plant In this Nation that, in
years of average weather, can produce
considerably in excess Of existing
market demands, even allowing for
considerable advance in domestic de-
mand," Black said. There Is some
Improvement in foreign markets for
our farm products, but this improve
ment Is taking place slowly.
Resistance to Trade.
In most channels of commerce
trade barriers offer resistance that
did not exist when our agriculture
was SO greatly expanded during and
after the World War. Domestic de-
mand cannot be expected to advance
to a point that will assure an ample
market with satisfactory prices for
all that American farmers can pro-
duce. Governments, Federal and
State, should be prepared to take
whatever steps are necessary to meet
this situation"
The reciprocal trade agreements are
only q starter toward the elimination
OF trade walls, Black said. He pointed
out that without the drought last
Summer, there would have been q
wheat surplus in this country above
our domestic needs Of $4,000 900
bushels, about half Of the harvested
crop.
How to dispose of surpluses that
we have reason to expect in future
years with the return Of normal
weather, despite greatly reduced for
eign demand for our farm products, is
q problem that the Nation must be
prepared to meet" wrote Black, who
predicted generally bright farm out
look for 1887.
"A most serious factor, of course
continues to be the bars that this and
other nations have raised against the
international exchange of goods. It is
possible that with normal weather the
production Of such crops as wheat and
cotton may increase much more rap
Idly than foreign demand
More Liberal Import Policy.
The bureau believes that a more
liberal import policy will improve
greatly the prospects for a substan-
tial recovery of our exports of certain
agricultural products, notably cotton.
tobacco, fruit and lard. These prod
ucts will be bought in substantial
quantities provided we are willing to
sell them at competitive prices and
to help increase foreign purchasing
power for these products by import
ing more goods and services from
abroad.
Our studies show conclusively that
the recent increase in competitive
agricultural imports by the United
States has been due largely to un-
favorable weather conditions. With
improving economic conditions there
Is reason to believe that the imports
OF some products such as we have al.
ways imported in substantial ouanti.
ties to supplement domestic produc-
ton will increase. but that these i'm
ports will have no significant bear
ing on the question of agricultural
adjustment in this country"
Misfortune Of Drought.
Despite its protection of the price
OF wheat, the drought, Black said.
lis a serious misfortune to agricul-
ture" and indicates the need for
measures that will contribute to the
security and stability Of farm in
come" Among the measures sue-
gested by him Is crop insurance. with
accompanying COMPENSATION OF the
farmers for contributing to an ade-
quate and continuous supply of farm
products'by by being given a more Sc
cure income"
But even with free exchange of
goods across the seas, Black predicted.
1t Is possible that our production of
cotton, wheat and live stock may in
crease more rapidly than foreign de-
mand. even though today most sur
pluses, which constituted a serious
problem in 1882, have been elimi-
mated.
There are fundamental weaknesses
In the position of agriculture that still
require vigilance-and action" Black
declared.