Evening star., 1939-01-01
Aid Not Complete Success but Farmer Fares We'll as Others
Agricultural Income
Only II Per Cent
Below 1887 Mark
Holds at 81, SOC, 900, 1000
Despite Problem of
Large SurpIuses
By Cambridge Associates,

by SdmDrlQee associates.
With the close of 1888 come two
realizations with respect to the farm
problem-flrSt a further strength
ening of the community of interest
between agriculture and industry,
and second that no experiment yet
tried to help the farmer has been
an unqualified success Neverthe-
less, the Bureau of Agricultural
Economics has estimated that cash
farm income in 1888 reached a total
of $7,625, 100000, only II per cent
under that of 1887. In spite of large
Surpluses, agriculture Jared no worse
than industry.
Starting with crop control to i'm
prove the battered price structure
of agricultural commodities, the
Government has gone long way on
the path of experimentation only to
see the ire of the farming COM
munity register itself at the first re-
versal. While Secretary Wallace was
philosophical in his acceptance of
the verdict of the polls, he must have
felt that his ambitious program had
failed to generate the loyalty he
could reasonably expect. For no pro-
gram could have brought a net in
crease in farm income in the year
1888.
dumping" Policy Weighed.
Crop restriction is less in the lime
light than formerly, in spite of the
surplus in wheat and cotton. In
stead, a more reasonable program
OF seeking new outlets is receiving
attention. This is at best a slow
process and one fraught with many
obstacles. At first it was proposed
that the Government subsidize ex-
port of surplus production to meet
lower world prices and climb tariff
barriers. This proved unpopular both
at home and abroad. Wheat-pro-
producing nations Immediately OBJ
jected to the trespass on their nat
ural markets. At home opposition
was expressed to the use of the
taxing power of the Federal Gov
ernment to make bread cheaper in
other countries. Why not give our
own needy the benefits of such a
dumping" policy?
Soundings of public opinion on
the practical aspects of subsidized
domestic distribution of surplus
commodities have already been
made. The answer to the question
of who should receive the benefits
was obviously the low-income group,
including the relief recipient. In
order to do this Government super
vision must follow the raw mate
rails through processing and distri-
button. This involves degree of
supervision of private industry
which has not yet been seriously
suggested on large scale. Or it
means processing and distribution
by the Government itself.
Two-Price Plan Objections.
In either case it is difficult to see
how limitation could be fixed on
the maximum income which would
entitle a consumer to be on the
subsidized list. Pressure in the di-
rection of extension of the rolls
would be felt and it would be
strong government indeed which
could keep within strict limits. On
the other hand, manufacturers and
distributors of unsubsidized goods
would be suspicious of any extension
of benefits, since even in the lowest
Income groups there are potential
customers.
There is a great likelihood that
plan of this type would be unable
to surmount these difficulties and
would eventually become direct
subsidy to all farmers unable to get
an agreed price for their products
The cotton and wheat loan policies
have accomplished probably as
much as can be hoped for without
undue disturbance of existing insti-
tutions; they may be extended
further.
Continued Control Predicted.
Surplus problems this year are
largely confined to wheat, cotton,
corn and some small crops. The
livestock cycle is in an uptrend, but
the supply is still small. and prices
are satisfactory. Dairy products
continued on an even keel through
out 1888, and demand for eggs was
we'll maintained despite smaller
consumer incomes.
Continued control of prices, acre
age restrictions and land conserva-
ton practices, with variations of re-
cent procedure, will undoubtedly |
continue at least for several years |
The reciprocal trade agreements are |
designed in part to relieve the pres |
sure on the farmer. and they have |
had a measure of success. but the |
avenue of export trade will remain
narrow and tortuous as long as the |
world is as unsettled as at present. |
Economic f-sufficiency is still the
watchWord of practically every ma !
ton, even at the cost of lower |
standard of living.
An increase in the national in
come such as is projected by the
administration, giving better |
break to the lower-income classes,
would contribute to greater pros
perity for the farmer through max |
ing balanced diets possible for those |
who now suffer deficiency, but the
potentialities of this prospect are
not OVerWhelrnlng.
Farmer Looks to Chemist.
The greatest hope of the Amer
lean farmer still continues to be
the development of industrial proc
esses to use farm products for pur-
poses other than food. The sub
stitution of grain alcohol in part for
automobile fuel was suggested some
years ago, but it never received
serious consideration because it was
both expensive and less satisfactory
than the product in use. The intro
duction of soy beans to this coun-
try, however, furnishes an example
of enterprise which has brought re-
wards Further diversifcation of
crops will keep the land in use so
that it may be converted to the pro-
drction of food necessities whenever