Aided by the sound principles adopted by the Government, the business of
the country has had an extraordinary revival. Looked at as a whole, the
Nation is in the enjoyment of remarkable prosperity. Industry and commerce
are thriving. For the most tart agriculture is successful, eleven staples
having risen in value from about $5,300,000,000 two years ago to about.
$7,000,000,000 for the current year. But range cattle are still low in
price, and some sections of the wheat area, notably Minnesota, North
Dakota, and on west, have many cases of actual distress. With his products
not selling on a parity with the products of industry, every sound remedy
that can be devised should be applied for the relief of the farmer. He
represents a character, a type of citizenship, and a public necessity that
must be preserved and afforded every facility for regaining prosperity.
The distress is most acute among those wholly dependent upon one crop..
Wheat acreage was greatly expanded and has not yet been sufficiently
reduced. A large amount is raised for export, which has to meet the
competition in the world market of large amounts raised on land much
cheaper and much more productive.
No complicated scheme of relief, no plan for Government fixing of prices,
no resort to the public Treasury will be of any permanent value in
establishing agriculture. Simple and direct methods put into operation by
the farmer himself are the only real sources for restoration.
Indirectly the farmer must be relieved by a reduction of national and local
taxation. He must be assisted by the reorganization of the freight-rate
structure which could reduce charges on his production. To make this fully
effective there ought to be railroad consolidations. Cheaper fertilizers
must be provided.
He must have organization. His customer with whom he exchanges products o
he farm for those of industry is organized, labor is organized, business is
organized, and there is no way for agriculture to meet this unless it, too,
is organized. The acreage of wheat is too large. Unless we can meet the
world market at a profit, we must stop raising for export. Organization
would help to reduce acreage. Systems of cooperative marketing created by
the farmers themselves, supervised by competent management, without doubt
would be of assistance, but, the can not wholly solve the problem. Our
agricultural schools ought to have thorough courses in the theory of
organization and cooperative marketing.
Diversification is necessary. Those farmers who raise their living on their
land are not greatly in distress. Such loans as are wisely needed to assist
buying stock and other materials to start in this direction should be
financed through a Government agency as a temporary and emergency
expedient.
The remaining difficulty is the disposition of exportable wheat. I do not
favor the permanent interference of the Government in this problem. That
probably would increase the trouble by increasing production. But it seems
feasible to provide Government assistance to exports, and authority should
be given the War Finance Corporation to grant, in its discretion, the most
liberal terms of payment for fats and grains exported for the direct
benefit of the farm.