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IV
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w -ovm?.- xnvzc t T-r.
Some Aspects of the
Farmers' Problems
By BERNARD M. BARUCH
(Reprinted from Atlantic Monthly)
f J
I The whole rural world Is in a fer
Wnt of unrest, nnd there Is an un
paralleled volume and Intensity of de
termined, If not angry, protest, and an
ominous swarming of occupational con
ferences, Interest groupings, political
movements nnd propaganda. Such a
turmoil cannot hut an est our atten
tion, Indeed, It demands our careful
etudy and examination. It Is not like
ly,?lmt six million aloof and ruggedly
Independent men huve cotne together
nnd' banded themselves Into active
unions, societies, farm bureaus, and bo
forth, for no sufficient cause.
'"Investigation of the subject conclu
sively proves that, while there Is much
overstatement of grievances nnd mis
conception of remedies, the farmers
lire right In complaining of wrongs
Jong endured, and right In holding that
It Is feasible to relieve thejr Ills with
lien'ellt to the rest of the community.
This being the case of nil industry
thnt contributes, in the raw material
form alone, about one-thlid"of the na
ilonul annual wealth production and
5s the means of livelihood of about 40
per cent of the populutlon, It Is ob
vlous that the subject Is one of grave
concern. Not only do the farmers
juuke up one-half of the nutlon, but
jilte well-being of the other half de
fends -upon them. -
So long as we have nations, a wise
jiolltclal economy will nlni at a large
legrec of national self-sutllclency and
Kclf-contnlnmcnt. Home fell when the
food supply wns too far removed from
'the belly. I.Ike her, we shall destroy
uir own agriculture und extend our
Mturces of food distantly and preen rl
iMly, If we do not nee to It that our
farmers are well and fairly paid for
their services. The fnrm,. gives the
nation men as well as food. f Cities
derive their vitality nnd are forever
renewed from the country, hut nn Im
poverished countryside exports Intelli
gence and retains uhlntelllgencc.
Only the lower grades of mentality
mid character will remain on, or seek,
i he farm, unless agriculturists capable
f being pursued with contentment nnd
ude'qunte compensation. Hence, to em
hitler and Impoverish the farmer Is to
try' 'up nnd contaminate the vital
Kourcerf'o'f the nation.
The ivlir showed convincingly how
dependent- the 'fiullbn Is on the full
productivity of ' the farms. Despite
Jiereule'nn efforts, agricultural produc
tion kept only a few weeks br months
nhend of consumption, nnlTthnt only
liy Increasing the acreage of certnln
utaple crops at the cost of reducing
,-ihtft of others. We ouglit not, to for
ef that lesson when we ponder on
.the farmer's problems. -They are truly
ii'omtnon problems, nnd there should
jtte.no attempt to dent with (hem as
bf-ihey were purely selfish demands
of. a clear-cut group, antagonistic to
(the rest of the community. Ituther
should we consider agriculture In the
light of broad national policy, Just
hi., we consider oil, coal, steel, dyer
Ktuffs, and so forth, as sinews of na
tional strength. Our growlng'populn
tlbn and a higher standard of llvlrvt
demand Increasing food supplies, add
more wool, cotton, hides, nnd jhe rest,
With the disappearance of free or
cheap fertile land, additional pcreage
nnd Increased yields can conje only
from costly effort. This we need not
xpect from nn Impoverished or un
3mppy rural population.
It will not do to take n nnrrow view
of the rural discontent, or to appraise
It -from the standpoint of yesterduy.
riijs Is peculiarly nn age of flux und
-liauge and new denls. Ilerituse a
thing always has been so no longer
means that It Is righteous, or always
t hull be so. More, perhnps, than ever
Itefore, there Is n widespread feeling
that all human relations can be tin-
In-overt by taking thought, and that It
s not becoming for the reasoning anl
nul to leave his destiny largely to
I'lmuce and natural incidence.
Prudent and orderly adjustment of
production and distribution In tit-cord-mice
with consumption Is recognized
us .wise munageiiient In every business
hut thut of farming. Yet, I venture
to, say, there Is no other industry In
Nvljlcli It Is so Important to the pub
Slcr-to the city-dweller that, produc
tion should ho sure, steudy, and In
i easing, mid thut distribution should
lie'ln (iroportlon to the need. The un
organized farmers naturally art blind
)y and Impulsively und, In conse
ijueni'e, surfeit and dearth, accompa
nied by disconcerting prlce-vurlutlons,
Paras the consumer. One ear potd
toes rot In the fields because of excess
production, nnd there Is n scarcity of
the things that huve been displaced
to make way for the expansion of the
potato acreage; next year the punish
ed fanners mass their fields on some
other crop, and potatoes: enter the
class of luxuries; und so &t
Agriculture Is the greatest and fun
dumeutally the most Important of our
American industries. The cities are
but the- branches of the tree of nu
, ilonul life, the roots of which go deep
y Into the laud.. We all flourish or
decline 'with the farmer. 0, when we
of the cities read of the present uul-
vrsal distress of the farmers, of-n
lump of six billion dollar in the farm
f glut' of their crops iu a 'single jeur,
XryrflfVTyH.'
of their inability to meet mortgages or
to pay current bills, and how, seeking
relief from their lilt, they are plan
ning to form pools, Inaugurate farm
ers' strikes, and demand legislation
abolishing grain exchanges, private
cuttle markets, and the like, we ouglit
not hastily to brand them ns economic
heretics nnd highwaymen, and hurl at
them the charge of being seekers of
special privilege. Itollier, we should
ask If their trouble Is not ours, nnd
sco what can be done to Improve the
situation. Purely fiom self-interest,
If for no higher motive, we should
help them. All of us wnnt to gel back
permanently to "normalcy," but Is It
reasonable to hope for that condition
unless our greatest and most basic In
dustry can bo put on a sound and solid
permanent foundation? The farmers
are not entitled to special privileges;
hut arc they not right In demanding
Hint they he placed on nn cqunl foot
ing with the buyers of (heir products
Mnd wltli other industries?
II
Let us, then, consider some of the
farincr'e grievances, und ee how far
they are real, In doing so, we should
remember that, while there have been,
and still are, Instances of purposeful
abuse, the subject should not be np
prouched with any genernl imputation
to existing distributive agencies of de
liberately Intentional oppression, bui
rather with the conception that the
marketing of farm products has not
been modernized.
An ancient evil; and u persistent
me, Is the undergrndlng of farm prod
ucts, with the result that what the
farmers sell as of one quality Is re
sold as of a higher. Thut this sort of
chicanery should persist on any Im
M)rtunt scale In these dujs of busl
ncss Integrity would seem almost In
credible, but there Is much evidence
that It does so persist. Kven ns I
write, the newspapers announce the
suspension of several firms from the
New York Produce Kxchnnge for ex
porting to Germany ns No. 2 wheat a
whole shipload of grossly Inferior wheal
mixed with on Is, chnff and the like.
Another evil Is that of Innccurute
weighing of farm products, which, It
Is charged, Is sometimes a matter of
.llshonest Intention' nnd sometimes of
nrotecttve policy on the part of the
local buyer, who fcuis that he may
"weigh out" more than he "weighs In."
A greater grievance Is that nt pres
ent the Held fanner lias little or no
control over the time and conditions
of marketing his products, with the
result that he Is-often underpaid for
his products und usually oven-hurged
for marketing service. The differ
ence between what the farmer re
ceives and what the consumer pays
nften exceeds all possibility of Justl
llcntlon. To cite a, single Illustration
Last year, according to figures ntfesti
ed by the railways and the growers,.
Georgia watermclon-rniHcrs received
on the average 7.5 cents for a melon,
the railroads got 12.7 cents for curry
ing It to Ilultlmore and the consumer
pnld one dollar, leaving "0 8 cents for
the seryjee of marketing and Its risks,
ns ngnlnst 20.2 cents for growing nnd
transporting. Tho hnrd ununls of
fnrm-llfe are replete with such com
mentnrles on the crudeness of pres
ent practices.
Nuture prescribes tlint the farmer's
"goods" must be finished within two
or three months of the year, while
financial ami storage limitations gen
erally compel him to sell them nt the
sume time. As n rule, other Industries
are n a continuous process or finish
Ing goods for the markets; they dls-'
tribute us they produce, mid they cad
curtail production without too great
injury to themselves or tho commit
nlty; hut If the fnriuer restilcts his
output, It Is with disastrous conse
quences, both to hlnc-elf und to the
community.
The average fnriuer Is busy with
production for the major put t of the
year, ami Hits nothing to 8q. The
bulk of his output comes on the mar
ket ut once, llecnuse of Inck of stor
uge facilities and of financial support,
the furmer cannot carry Ills goods
through the year and dispose of them
us they are currently noeded. n the
great majority of cases farmers huve
to entrust storuge in waieliouses nnd
elevators and the ilnanclul euro Ing
of their products to otheis.
Fnrm products ure generally mar
keted ut a time when there Is a con
gestion of both transportation and
finance when cars and money are
scuree. The outcome, In many in
stances, Is that the farmors tint only
sell under pressure, und therefore at
u disadvantage, hut are compelled to
take further reductions In net returns,
In order to meet the ehurges for the
service of storing, transporting, financ
ing, und ultimate marketing which
charges they claim, ure often exees
slve, beer heavily on both eou3umer
and producer, und aro under the con
trol of those performing the services
It is true that they are relieved of
the risks of a chunglng murket by
selling at once ; but they ure quite will-
DAKOTA COUNTY HERALD
ml rm rw mm mmttmitiiiiltffinmmmimmmmm
I Ing to tnko tho unfnvornhlp chanc,
j If the favorablo one also le theirs nnd
' they enn relnln for themselves, a part
or tne service ennrges tnnt nr uni
form, In good years nnd bad, wtb
high prices nnd low.
Wlille, in the main, the farmer mnst
sell, regnrdless of market condition;,
nt the time of the maturity of crops,
he cannot suspend production In toto.
He must go on producing If he Is'to go
on living, and If the world Is to exist.
The most .he can do Is to curtail pro
dilution n little or alter Its form, and
tlint becnuse he is In the dark ns to
the probnhle demand for his goods
may be only to Jump from the frying
pnn Into the fire, taking tho consumer
with him.
Even the dairy farmers, whose out
put Is not seasonal, complain that they
find themselves at a disadvantage In
the marketing of their productions,
especially raw milk, becnuse of the
high costs of distribution, which they
must ultimately benr.
Ill
Now thnt the farmers arc stirring,
thinking, nnd uniting ns never before
to eradicate these Inequalities, they
are subjected to stern economic, lec
tures, nnd arc met with the accusation
that they are demanding, and arc the
recipients of, special privileges. Let
us see what privileges the government
has confeircd on the farmers. Much
has been mnde of Section 0 of the
Cln.vlon Anti-Trust Act, which pur
ported to permit them to combine with
Immunity, under certain conditions.
Admitting thnt, nominally, this ex
emption wns In the nature of a special
privilege, though I think It was so In
appearance rather than In fnct, we
dud that the courts have nullified It
by Judicial Interpretation. Why should
not the farmers be permitted to ac
complish by co-operutlve methods what
other businesses are already doing by
co-operation In the form of Incarpora
tjjm? It It be proper for men to form,
by fusion of existing corporations or
Otherwise, a corporation that controls
the entire production of a commodity,
or n large part of it. why Is it not
proper for n group of fanners to unite
for the marketing of their common
products, either In one or In several
selling agencies? Wiry should It be
right for a hundred thousnnd corporate
shareholders to direct 25 or 30 or 40
per cent of Industry, nnd wrong for
)t hundred ' thousnnd co-operntlve
farmers to control u no Inrger propor
tion of the wheat crop, or cotton, or
any other product?
The Department of Agriculture Is
often spoken of as a special concession
to the farmers, but In Its commercial
results, It Is of as much benefit to the
buyers nnd consumers of agricultural
products as to the producers, or even
more. 1 do not suppose thnt nnyone
opposes the benefits that the farmers
derive from the educntlonnl nnd re
search work of the department, or the
help that It gives them In working qui
Improved cultural methods and prac
tices, In developing hotter yiejdlng yn
rlctles through breedlirg nnd rejection
Jn Introducing new varieties from re
mote parts of the world and adapting
litem to our climate and economic con
dltlon' nnd In devising practical mens
tires for the elimination or control of
dangerous and destructive unlmul and
plant diseases, Insect pests, nnd the
like. All these things, manifestly tend
to stimulate and cnlnrge production
nnd their genernl beneficial effects are
obvious.
It Is complained that, whereas the
law restricts Federal Reserve, banks
to three months' time for cotnrnerelu.1
paper, the farmer Is allowed slj
months on his notes. This 1$ not n
special privilege, but merely jucli a
recognition of business conditions ns
iiwkes It possible for country- hanks
to do business with country jWople.
The crop farmer lias only one'' turn,,
over n jenr, while the merchant and
manufacturer have ninny. Incidental
y, I note that the Federal Reserve
Hoard has Just authorized the Fedv
tral Reserve banks to discount export
paper for a period of six months, to
conform to the nature of the busl
ncss. The Furm Loan bunks are "pointed
to us an Instance of s.peclul govern
ment fuvor for fnrmers. Are they not
rather the outcome of laudable efforts
to equalize rural and urban" condi
tions? And about all the government
does there Is to help set up 'an ad
mlnlstrnttve organization mid lend n
little credit nt the start. Kventuully
the fnrmera will provide nil the capi
tal and car"y all the liabilities them
selves. It Is true thnt Farm Loan
bonds nre tnx exempt ; but so are
bonds of municipal light and traction
plants, and new housing Is to he ex
empt from taxation, In New York, for
ten years.
On the other hand, the fnrmcr reads
of plans for municipal housing proj
ects tiuit run Into the billions, of htm
dreds of millions annually spent on
the merchant marine; he reads thut
the railways are being fuvorojl with
Increased rates nnd virtual guaranties
of earnings by the government, with
the tesiilt to him of an 'ncreused toll
on till that he sells and all thnt he
liit.vs. He heurs of many manifest)!
tlous of governmental concern for par
ticular Industries und Interests. lies
cuing the rullvvnys fiom Insolvency U
undoubtedly for the benefit df the
country as a whole, but what can be
of more general benefit than encour
agement of ninple production of -the
principal necessaries of life- and their
even How from contented producers to
satisfied consumers?
While It may he conceded that
special go,crtunentul aid may he nee
essury In the general Intercut, we must
ull agree that It Is difficult to see why
ugtlcutture and the production and dls
trlbutlon of farm products are nut uc
corded the same opportunities thut ure
provided for other businesses; espe
dully as the enjoyment by the ftiuuei
of such opportunities would nppear to
be eyen more coutrlbutory to the. sea
. . .L. ...... ... i
oral gooq ipnn w me ease or oiner
Industries. The spirit of American
democracy Is unnltnruhly opposed,
allko to enacted special privilege and
to the special prlvllcpa of unequal op
portunity that arises automatically
from the . failure to correct glaring
economic Inequalities. I anl opposed
to the Injection of government Into
business, but I do believe that It Is an
essential function of democratic gov- '
ernment to equalize opportunity so
far as It is within Its power to do so, '
whether by the repeal of archaic
statutes or the enactment of modern
ones. If the anti-trust laws keep the
fnrmers from endeavoring scientifically
to Integrate their Industry wlille other
Industries find a way to meet modern
conditions without violating such stat
utes, then It would seem reasonable
to find a way for the farmers to meet
them under the snme conditions. The
law should operate equally In.fnct. Re
pairing the economic structure on one
side Is no Injustice to the other side,
which Is In good repair.
We have traveled a long way from
the old xopceptlon of government as
jtercly a defensive and policing ngency ;
and regulative, corrective, or equaliz
ing legislation, which apparently Is of
n spc'clal nature, Is often of the most
general beneficial consequences. Kvcn
(he First Congress pnssed a tariff act
hat wns avowedly for the protection
df manufacturers; but. n protective
tariff always has been defended as a
means of promoting the genernl good
through a particular approach; und
he stntute books arc filled with acts
Tor the benefit of shipping, commerce,
snd Inbor.
Now, what Is the farmer asking?
Without trying to catalogue the re
nedlnl measures that have been sug
gested In his behalf, the principal pro
posals tjjn,t bear directly on the Im
irovement of his distributing and mar
keting relations may be summarized as
'.illows :
First: storage warehouses for cot
'on, wool, and tobacco, and elevators
for grain, of sufficient capacity to meet
'he maximum demand on them at the
peak of the marketing period. The
'nrmer think9 thnt either private capl
'nl must furnish these facilities, or the
itate mtist erect nnd own the eleva
'ors nnd warehouses.
Second; weighing and grading of
Agricultural products, and certification
.hereof, t be done by Impartial and
llslnteresfed public Inspectors (this Is
ilrendy accomplished to some extent
y the federal licensing of weighers
and graders), to eliminate underpay
pg, overcharging, nnd unfair grading,
tnd to facilitate the utilization of the
stored products as the basis of credit.
Third so certainty of credit sufficient
'o enable the marketing of products
'n nn orderly manner.
Fourth: the Department of (Agricul
ture should collect, tnbulnte, summa
rize, and regularly and frequently pun
ish nnd distribute to the 'farmers, full
informntlpn frdm nil the idnrkets of
the world, so that they Ghnll'be as well
Informed of their selling position as
niiyers now are of their buying posi
tion. Fifth: freedom to Integrate the busl
uess of agriculture by means of con
solldnied selling agencies,' co-ordlnat-'ng
and co-operatlna in such way as to
lilt the farmer on nh equal footing
with the large buyers of his products,
and with commercial relations in othe'r
.ndustrjes.
When n business requires specialized
talent, It has to buy It. So will the
farmers ; nnd perhnps the lyjst wny for
them to get k would be to utilize some
of the present machinery of the larg
est established agencies, dealing In
farm products. Of course, If he wishes,
the farmer may go further and engage
In fioiir-'mllllng nnd other manufactures
of fooq products. In my opinion
however, he would be wise to stop
short of that. Public Interest mny be
opposed to all great Integrations; but.
In Justice, should they be forbidden to
the farmer nnd permitted to others?
The corporate form of association can
not now be wholly adapted fn his ob
Jects and conditions. The looser co
operative form seems more generally
suitable. Therefore, he wishes to he
free, If he. finds It desirable and fens
Ible, to resort to co-operation wlUi his
fellows and neighbors, without run
nlng afoul of the law. To urge that
the farmers should have the snme lib
erty to consolldnte and co-ordlnnte
their peculiar economic functions
which otier Industries In their field
enjoy, Is not, however, to concede thai
any business Integration should have
legislative sunctton to exercise monop
ollstlc power. The American people
are as firmly opposed to Industrial us
to political autocracy, whether at
tempted by rural or by urban Industry
For Inck gf united effort the fnrmers
as a, 'whole are still marketing their
crops by antiquated methods, or by no
methods at all, but they are surrounded
by a business world thut has been
modernized to the Inst minute and h
tirelessly striving fur efficiency. This
efficiency Is due In large measure to
big business, to united hiiflluoss, to In
tegruted business. The furmers now
seek the benefits of ucl lurgeness, iiii
Ion nnd Integration.
The Amerlcun farmer Is a modern of
the moderns In the use of labor suvlug
machinery, and he has made vast
s,trldes'cln recent years In scientific
tillage and efficient farm ninnngement.
but lis a business In contact with other
businesses aglrculture Is a "one horse
shay.'f.ln competition with high power
niitoni'&blles. The Amerlcun farmer Is
the greatest and most Intractable of
Individualists. While Industrial pro
ductfqn and all phases of the huge com
nierctit! mechanism nnd Jts myriad .nc
cessorles huve articulated und co-ordl
noted themselves all the way from nut
urul raw materials to retail sales, the
business of agriculture bus gone on In
much the one man fashion of the back
woois of the first part of the nine
tcenth ceutury, when the .farmer was
ry.iiTjiinimwwiiitiyiMi-ifin'irrrri irflirroeia-iTivimiftJi.
iat tunlcicnt and did not dopdnd upon,
or care very much, whnt the great
world whs doing. Tho result Is thnt
the agricultural group is nlmost ns
tntifli nt a disadvantage In dealing with
qtlicr economic groups ns the Jay form
er of the funny pages In the hnnds of
sleek urban confidence men, who sell
him acrengo In Central Park or flic
Chicago city hull. The leaders of the
farmers thoroughly understand this,
and they are Intelligently striving to
Integrate their Industry so thnt It will
be on nn equal footlng-wlth other busi
nesses. As nn example of Integration, take
the steel Industry, In which the model
Is the United States Steel Corporation,
with Its Iron mines, Its coal mines, Its
lake nnd rail transportation, Its ocenn
vessels, Its by-product coke ovens, Its
blnst furnaces, Its open hearth nnd
Bessemer furnaces, Its rolling mills, Its
tube mills nnd other manufacturing
processes thnt are carried to the high
est degree of finished production com
patible with the large trade It has
built up. All this Is generally conced
ed to be to the advnntnge of the con
sumer. Nor does the steel corporation
Inconsiderately dump Its products on
the market. On the contrary, It so
nets thnt It Is frequently a stabilizing
Influence, us Is often the ense with oth
er large organizations. It Is master of
Its distribution ns well as of Its pro
duction. If prices ure not satisfactory
the products nre held hnck or produc
tion is reduced or suspended. It Is not
compelled to send n yenr's work to the
mm ket at one time and tnke whatever
It can get under such circumstances.
It has one selling policy nnd Its own
expert department. Neither are the
grades and qualities of steel determin
ed at the caprice of the buyer, nor does
the latter hold the scales. In this sin
gle Integration of the steel corporation
Is represented nbout 40 per cent of the
steel production of Amerlcn. The rest
Is mostly In the hnnds of a few large
companies. In ordlnnry times the
steel corporation, by exnmple, stabilizes
nil steel prices. If this Is permissible
(It Is even desirable, because stable
mrt fulr prices are essential to solid
and continued prosperity) why would
It be wrong for the farmers to utilize
central agencies that would have simi
lar effects on agricultural products?
Something like that Is what th'ey are
aiming nt.
Some farmers favored by regional
-ompnetness nnd contiguity, such ns the
.'Itrus-frult-ralsers of California, al
ready have found n way legally to
merge and sell their products Inte
grally and In necordancirwlth seasonal
and locul demand, thus Improving
their position a I id rendering the con
sumer a reliable service of ensured
lunllty, certnln supply, and rensonnble
,md relatively steady prices. They
have not found It necessary t resort
to any special privilege, or to claim
nn$ exemption under the anti-trust
legislation of the state or nation. With
out removing local control, they huve
hullu up a .very efficient marketing
agency. The grnln, cotton, and td
lincco fnrmers, and tho producers of
hides and wool, becnuse of their num
hers nnd the vastness of their regions,
ind for other reasons, have found
integration a more difficult task;
though there arc now sone thousands
if .farmer's co-oprutIve elevators,
warehouses, creameries, and other en
terprises of one sort nnd nnother, with
,i turn-over of n billion dollers a year.
They are giving the farmers business
experience and training, nnd, so fnr
us tney go, fiiey meet lite neeu or
honest weighing and fulr grading; but
they do not meet the requirements of
rationally adjusted marketing In any
large and fundamental way.
The next step, which will be a pat
tern for other groups, Is now being
prepared by the grain-raisers through
the establishment of sales media which
ihnll handle grnln separately or col
'ectlvely, ns the Individual farmer mny
Wect. It Is this step the plan of the
Committee of Seventeen which hns
crented so" much opposition nnd Is
thought by some to be In conflict with
the nntl-trust laws. Though there Is
now before congress n measure de
signed to clear up doubt on this point,
the grain-producers nre not relying on
any Immunity from anti-trust legisla
tion. They desire, nnd they nre en
tilled, to co-ordlnnte their efforts Just
as effectively ns the large business In
terests of the country have done. In
connection with the selling organiza
tions the United Stntes Oraln Growers
Incorporated Is, drafting a scheme of
financing Instrumentalities and auxili
ary agencies which nre indispensable
to the successful utilization of modern
business methods.
It Is essential that the furmers
should proceed gradually with these
plans, and aim to nvold the error of
scrapping the existing marketing mn
chlnery, which hns been so laboriously
built up by long experience, before
they hnve a tried and proved substi
tute or supplementary mechanism.
They must be careful not to become
enmeshed In their own reforms and
lose the perspective of their place In
the national system. They must guard
against fanatical devotion to new doc
trines, and should seek nrtlculntlon
with the genernl economic system
rather than Its reckless destruction as
It relates to them.
To take a tolerant and sympathetic
view of the farmers' strivings for bet
ter things Is not to give a blanket
endorsement to any specific plun and
still less to applaud the vngniies of
some of their lenders nnd groups.
Neither should we, on the other bund,
nllow the froth of bitter ngltutlon.
false economics, and mlstuken radical
Ism to conceal the facts of the farm
ers' disadvantages, and the practicabil
ity of eliminating them by well-con
sldered measures. It may be that the
farmers will not show tho business
sagacity and develop the wise leader
ship to carry Jhrough sound plans; but
that possibility does not Justify tag
1 1 .' 1 ? I? .7ffi "', 1 ' f "" ''I '-' "r ' '
instruction of thalr upward efforts.
We, at city people, see In high and
speculatively manipulated O prices,
spoilage, -iiste, scnrclty, the results
of defective distribution of fnrm prod
ucts. Should It not occur to tt9 thnt
we linvo n common Interest with the
, farmer In his attempts to nttnln a de
gree or emcicncy In distribution cor
responding to his efficiency In produc
tion? Do not the recent fluctuations
In the .May wheat option, nppnrently
unrelated to normnl Interaction of
supply and demand, offer a timely
proof of the need of some such stabil
izing agency ns the grain growers have
In contemplation?
It Is contended that, If their pro
posed organizations be perfected nnd
operated, the farmers will have In
their hands an Instrument that will be
capable of dangerous nbuse. We nre
told that It will bo possible to pervert
It to arbitrary and oppressive price
fixing from Its legitimate use of order
ing nnd stnblllzlng the flow of fnrm
products to the market, to the mutual '
benefit of producer and consumer. I
have no npprehenslons on this point
In the first plnce, a loose organiza
tion, such ns nny union of fnrmers
must he nt best, ennnot be so nrbl
trurlly nnd promptly controlled ns a
grent corporation. The one Is a lum
bering democracy and tho other an agile
autocracy. In the second place, with
ill possible power of organization, the
fnrmers ennnot succeed to nny grent
extent, or for nny considerable length
of time, In fixing prices. The grent
Inw of supply und demand works In
rarlous nnd surprising ways, to tho
undoing .of the best laid plans that
attempt to foil It. In the third plnce,
their power will nvall the farmers
nothing If It be nhused. In our time
nnd country power is of valuo to Its
possessor only so long ns It Is not
abused. It Is fnlr to sny that I hnve
seen no signs In responsible qunrters
of n disposition to dictate prices.
There seepis, on the contrary, to be a
commonly beneficial purpose to realize
a stability that will glvi an 'orderly
nnd nbundant flow of farm products
o the consumer and ensure reasonable
tnd dependable returns to the pro
1uccr. In view of the supreme Importance
lo the national well-being of a pros
nerous and contented agricultural pop
ulation, we should be prepared to, go
i long way !ii assisting the farmers to
set -an equitable share of the wealth
hey produce, through the Innugura
lon of reforms that will procure a
.'ontlnuous nnd Increnslng stream of
.'arm products. They are far from get
!lng n fair share now. Considering
lis capital nnd the long hours of labor
put in by the -average farmer and Ills
family, he Is remunerated less than
iny other occupational class, with the
msslhle exception of teachers, rell
;lous and lay. Though we know thnt
.he present general distress of the
farmers is exceptional ( and Is linked
with the Inevitable economic readjust
nent following the war, ft must be
remembered that, although represent
ing iinc-thlrd of the Industrial product
ttid half the total population of the
inflon, the rural communities erdl
inilly enjoy but n fifth to a quarter of
the net annual national gntn. Not with
ctnndlng the taste of prosperity that
'he farmers had during the wnr, there
Is today a lower standard of living
nmong the cotton fnrmers of the South
'ban In nny other pursuit In the country.
In conclusion, It seems to me that the
formers nre chiefly striving for a gen
erally beneflcinl Integration of their
business, of the snme kind nnd chnrnc
lor thnt other business enjoys. If It
should be found on examination thnt
the nttalnment of this end requires
methods different from those which
3ther activities have followed for the
same purpose should we not sympa
.hetlcally consider the plea for the
right to co-operate, If only from our
own enlightened self Interest, In ob
taining nn abundant und steady flow ot
farm products?
In examining the agricultural situa
tion with a view to Its Improvement,
we shall be most helpful If we main
tain a detached and Judicial viewpoint,
remembering thnt existing wrongs may
be chiefly an accident of unsymmetrl
cal economic growth Instead of a crea
tion of malevolent design and conspira
cy. We Americans nre prone, ns Pro
fessor Dnvid Friday well says In his
admirable book, "Profits, Wages and
Prices," to seek a "criminal Intent be
hind every difficult and undesirable eco
nomic situation." I can positively as
sert from my contact with men of
Inrge affairs, Including Jiunkers, that,
as a whole, they are endeavoring to
fulfill as they see them the obligations
that go with their power. Preoccupied
with the grave problems nnd henvy
,tnsks of their own Immediate nffulrs,
they haH not turned their thoughtful
personal attention or their construc
tive abilities to the deficiencies of agri
cultural business organization. Agri
culture, It may be said, suffers from
their preoccupation nnd neglect rather
than from nny purposeful exploitation
by them. They ought now to begin to
respond to tho farmers' difficulties,
which they must realize are their own.
On the other hnnd.jny contacts with
the farmers have filled me with respect
for them for their sanity, their pa
tience, their balance. Within the last
year, and particularly at a meeting
called by the Kansns Stute Hoard of
Agriculture und nt another called by
the Committee of Seventeen, I have
met many of the lenders of the new
fnrm nm eminent, and I testify In nll
sincerity that thuy are'endeuvorlng to
deal with their problems, not- as pro
moters of a narrow class Interest, not
ns exploiters of the hapless consumer,
not as merciless monopolists, but as
honest meiit bent on the Improvement
of the coinmcn weal. -J
We can and mint meet such men -und
such a cause half way. Their
business Is our business the nation's
business. , fe -.
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