Bemidji Daily Pioneer Newspaper, January 16, 1922, Page 9

The Pioneer is the only within' 100 miles of Bemidji and has the largest cireulation in North- ern Minnesots. 5 & daily VOLUME XIX. NO. 228 e — AR N M ‘BEMIDJI. DAILY PIONEER O LD 0 Sy |' SEC R —— "BEMIDJI, MINN., MONDAY EVENING, JANUARY 16, 1922 85¢c PER MONTH ED BY BEMIDJI MERCHANTS AReprinted from 1 1 : 'The .whole rural ment of unrest, and there is an un- paralleled volume and intensity of de- termined, if not angry, protest, and an ominous swarming of ‘eceupgtional con- ferences, ‘interest grouping® political movements and; propaganda.. Such a turmoil cannot but arrest our atten- Some Aspects of the Farmers’ Problems . By BERNARD M. BARUCH b world is in a fer- - > ) Atlantic Monthly) class of Nixuries; and s6 om. Agriculture is the greatest and fun- damentally the most important of our American industries. The cities are but the branches of the tree of na- tional life, the roots of which go deep- ly into the land. e all flourish or decline with the farmer. So, when we of the cities read of the present uni- versal ‘distress of tlie farmers, of a tion. Indeed, it. demands our careful || slump of six billion dollars in the farm study and examination. -1t Js not.like-. 1y that six million aloof and ruggedly" independent men have come: together- and banded: themselves: -into. active unions, socleties, farm bureaus, and so forth;:for no:sufficient: cause; - Inyestigation of the subject conclu- slvely proves that; while there {s much _value_of their crops in a single ‘year, 0; their 1napiity to meet mortgages or to pay current bills, and how, seeking relief, from -their ills, they are plan- , ning:t6 ‘form. pools, inaugurate farm- ers’- strikes,” and ‘demand legislation abolishing - grain - exchanges, private _cattle markets, and the like, we ought ‘not ‘hastily to brand them as economic oversfatement of grievances and mie- | heretics and highwaymen, and hurl at conception -of remedies, the farmers are right in complaining of wrongs long endured, and right in holding that it is feasible to relieve their ills with * benefit,to the rest of the community. ‘This' being the case of an industry that' contributes, in the raw material form.alone, about one-third of the na- tional ‘annual wealth production and is the means of livelihood of about 49 per cent of the population, it is ob- vious that the subject is one of grave concern. Not only ‘do the farmers make up one-half of the nation, but the wellbeing of the other halt de- pends upon them. . So long as we have nations, a wise politcial ‘economy will aim-at a large degree of national selfsufficiency and self-containment. " Rome fell when the Tood supply was too far removed from the belly. Like her, we shall destroy | our own agriculture and extend -our sources of food distantly and precari- ously, if we do not see to it that our farmers ‘dré well dnd fairly paid for “their services, The farm gives -the nation men as -well as food. Cities derive their vitality and are forever renewéd from the country, but an im- poverished countryside exports intelli- gence and retains unintelligence. Only the lower grades of mentality and character will remain on, or seek; . the farm, unless agriculture is capable of being pursued with contentment and adequate compensation. ‘Hence, to em- bitter and impoverish the farmer is to dry up-‘and- contaminate the vital sources of the nation. The war showed convincingly how dependent the nation iS on’ the full productivity of the- farms, Despite herculean' efforts, agricultural produc- tion kept only a few weeks or months ahead of consumption, and that only by increasing ‘the acreage of certain staple crops at the cost of reducing that of others.. We ought not to for- get that lesson when we ponder on the farmer's problems. They are truly common problems, and’ there should be no attempt to deal with them as if they were purely selfish demands of a_clear-cut group, antagonistic to the rest .of the community. . Rather should we consider agriculture in-the light of broad national policy, just as we consider oil, coal, steel, dye-, stuffs, and so forth, as sinews of na- tional strength. Our growing popula- tion and @ higher sfandard of living demand Increasing food supplies, and more wool, cotton, hides, and the rest. With the disappearance of free or cheap fértile land, additional acreage and increased -yields can come only from' costly effort. ' This ‘we need not expect from an impoverished or un- happy rural population. 1t will not do to take a narrow view of the rural-discontent, or to appraise it from the standpoint of yesterday, This is peculiarly an age of flux ana change and new deals. Because & thing always has been so mo longer means that it is righteous, or always shall be so. - More, perhaps, than ever before, there is a widespread feeling that all human relations. can -be im- proved by taking thought, and that it is not becoming for the reasoning ani- mal to leave his destiny largely to chance and natural incldence. Prudent and orderly adjustment of production and distribution in accord- ance ‘with consumption is recognized as wise management in every business but that-of farming. Yet, I venture to say, ther? is no other industry in which it is so important to the pub- lic—to the city-dweller—that produc- tion should be sure, steady, and in- creasing, and that distribution slhiould be in proportion to the need. The un< organized farmers naturally act blind- Iy and impulsively and, in conse- quence, surfeit and ‘dearth, accompa- nied by disconcerting price-variations, harass the consumer. One year pota- toes rot in the fields because of excess prodiction, and there is a scarcity of the things that have been displaced to make way for the expansion of the potato acreage; mext year the pumis ‘ed farmers mass their fiélds on some biligr_crop, and potatoes enter theA A - age facilities and of financial support, :‘them the charge of being seekers of special privilege. Rather, we should ask if their trouble is mot ours, and see what can be done to improve the situation.. Purely from self-interest, If for no higher motive, we should help them. All of us want to get back permanently to “normalcy;” but is it reasonable to hope for that condition unless our greatest and most basic, in- dustry can be put on a sound and solid permanent foundation? The farmers l.are not entitled to special privileges; but are they not right in demanding that they be placed on an equal foot- Ing with the buyers of their products ‘and with other industries? I Let us, then, consider some of the farmer’s grievances, and see how far i they are real. In doing so, we should remember that, while there have been,’ and still are, instances of purposeful abuse, the subject Should mot be ap- proached with any general imputation to existing distributive agencles of de- liberately - intentional oppression, but rather with the conception that the marketing of farm products has-not been modernized. An anclent evil, and a pérsistent one, {s the undergrading of farm prod- ucts, with the result that what the. farmers sell as of one quality 18 re- sold as of a higher. That this sort of chicanery should persist on any im- portant scale in these days of busl- ness integrity would seem almost In- credible, but there is much evidence that- it does so persist. Even.as I write, the newspapers announce the suspension of several firms from the New York Produce Exchange for ex- porting to Germany as No. 2 wheat a whole shipload of grossly inferior wheat mixed with oats, chaff and the like, Another evil is that, of inaccurate weighing of farm products, which, it 1S ‘charged, is sometimes a matter of dishpnest intention and sometimes of prol;ec(ive policy on the part of the local: buyer, who: fears that he may “weigh out” more than he “weighs in.” Al greater grievance is that at pres- ent-the fleld farmer has little or no control over the time and conditions of marketing his products, with the result that he is often underpaid for his products and usually overcharged for. marketing service. The differ- ence between what the farmer re- celves and what the consumer pays often exceeds all possibility of justi- fleation. To cite a single illustration. Last year, according to figures attest- ed by the raflways and-the growers; Georgia - watermelon-raisers received on the average 7.5 cents for a melon, the railroads got 12.7 cents for carry- g it to Baltimore and the consumer paid one dollar, leaving' 79.8 cents for the service of marketing and its risks, as against 20.2 cents for growing and transporting. ‘The hard - annmals of farm-life are replete with such com- mentaries on the crudeness of pres- ent practices, Nature prescribes that the farmet’s ““goods” must be finished within two or three months of the year, while financial and storage limitations gen- erally compel him to sell them at the same time. As a rule, other industries are fn a continuous process of finish- i ing goods for the-inarkets; they dis- tribute as they produce, and they can curtail production without too great injury to themselves or the commu-. nity; but if the farmer restricts his output, it is with disastrous conse- quences, both to himself and to the community. The average farmer Is busy with production for the major part of the year, and has nothing to sell. The bulk of his output comes on the mar- | ket at once. Because of lack of stor- { the farmer cannot carry his goods through the year and dispose of them, ! f | i 48 they are currently needed. In the great majority of cases, farmers have to entrust storage—in warehouses and elevators—and the financial carrying of their products to others. Farm products are generally mar- keted at a time when there is a con- gestion of Dboth "transportation and finance—when cars .and money - are scarce. The outcome, in many in- stances, Is that the farmers not only sell under pressure, and therefore at a disadvantage, but-are compeiled to take further reductions In net returns, in order to meet the charges for the service of storing, transporting, financ- ing, and ultimate marketing—which chavges they claim, are often exces- sive, bear heavily on both consumer and producer, and are under, the con- trol of those performing the services. ‘It is ttue that they are relleved of the risks of a changing market by selllng at once : but they are quite will- ing to take the unfavorable chance, if the favorablé,one also Is theirs and they can retain for themselves a part form, in good “years and bad, with high prices and:low. % " “While, {n the main, the farmer must gell, regardless- of market conditions, .at the time of the maturity of crops, he canngt 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- duction g litfle or alter its form, and that—because he Is ih the dark as to the probable demand for his goods— may be only to jump from the frying pan Into the fire, taking the 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, because of the high costs of distribution, which they must ultimately bear. I Now 'that the farmers are stirring, thinking, and uniting as' never before to eradicate these inequalities, they are subjected. to stern economic lec- tures, and are met with the accusation that they are demanding, and are the recipients of, special privileges. Let us see what privileges the government has' ¢onferred on the farmers, Much has been made of Section G of the Clayton Anti-Trust Act, *which pur- ported to permit-them.to-eombine with {idtidnlly, under certain conditions, Admitting. that, nominally, this ex- enption was in the nature of a special _privilége,—~though I think it was so In appearance rather than in fact,—we find that the courts have nullified it by jiidicial interpretation. Why should not the farmers be permitted to ac- complish by.co-operative methods what other businesses are already doing by co-operation In the form of Incorpora- tion? If it be proper for men to form, by fusion of existing corporations or otherwise, a corporation that cohtrols the entlre production of a commodity, or a large part of it, whyIs it not proper for a group of farmers to unite for the marketing of their common -products, either in one or.in several selling agencies? Why should it be right for a hundred thousand corporate shareholders to direct 25 or 30 or 40 -per cent of an industry, and wrong for a ‘hundred thousand co-operative tion of the wheat crop, or cotton, or any other product? e 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 and consumers of agricultural products as to the producers, or even more. I do not suppose that anyone opposes. the benefits’ that the’ farmers derive from the éducational and re- search work of the department, or the help. that it gives them in working out improved cultural methods and prac- tices, in developing better ylelding va- rleties through breeding and selection, in introducing new varleties from ‘re- mote parts of the-world and adapting them to our climate and economic con- dition; and In devising practical meas- ures for the elimination or:control. of dangerous and destructive animal and plant diseases, insect pests, and the like. All these things manifestly-tend to stimulate and enlarge production, and thelr general beneficlal effects are obvious. 3 7 It is complalned that, whereas the Jaw -restricts: Federal iReserve banks to three months' time for commercial paper, the farmer is allowed six months -on his notes. This Is not a special privilege, but merely such a recoghition: of business conditions as makes It possible for country banks to do business with country -people. The -erop farmer has only one turn- over a year, while the merchant and manufacturer have many. “Incidental- 1y, ‘T note that the Federal Reserve Board bas just authorized the Féd- eral Reserve banks to discount export paper for a perlod of six montls, to conform to the nature of the busi- ness, ? i The Farm Loan banks are pointed to as an Instance of special govern- mént favor for farmers. Are they not rather the outcome of laudable efforts to equalize rural and urban condi- tions? And about all the government does thete i3 to help set up an ad- ministratite organization and lend a little credit at the start, Eventually the farmers will providerall the capi- tal and carry all the labilities them- gelves, It is true that Farm Loan s o b . o, i J farmers to control a no larger propor- Z of ‘the service charges that are uni-} | | WEDNESDAY IS DOLLAR DAY; BARGAINS OFFER bonds are fax exewpf; Duf So are bonds of municipal light and traction plants, and new housing Is to be ex- empt from taxation, in New York, for ten years. 3 & On the other hand, the farmer reads of plans for municipal housing proj- ects that run into the billions, of hun- dreds of miMions annually spent on the merchant niarine; he reads that the railways are being favored with increased rates and virtual guaranties of earnings by the government, with the result to him of an ‘ncreased toll on all that he sels and all that he buys. He hears of many manifesta- tions of governmental concern for par- ticular industries and interests, Res- cuing the railways from insolvency Is undoubtedly for the benefit of the country -as a whole, but- what can be of more general benefit than encour- agement of ample production of the principal necessaries of life and thelr even flow from contented producers to satisfied consumers? i While it may be conceded that special governmental ald may be nec- essary in the general interest, we must all agree that it is difficult to see why agriculture and the production and d tributlon of farm products are not ac- corded the same-opportunities that are provided for other businesses; espe- clally as the enjoyment by the farmer of such opportunities would appear to be even more contributory to the gen- eral good than In the case of other industries, The spirit of American democracy 1Is unalterably opposed, alike to enacted special privilege and to the special privilege of unequal op- portunity that arises automatically from the failure' to correct glaring economic inequalities. I am opposed to the injection of government . into business, but I do believe that it is an essential function_of demoecrati | ernmeént to ‘equalize opportunlty so | tar as it Is within its power to do so, | whether by the repeal | statutes. or the enactment of modern ones, If the anti-trust laws keep the farmers from endeavoring scientifically to integrate thelir industry while-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 same conditions, The law should operate equally In fact, 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 conception of government as merely a defensive and policing agenc; and regulative, corrective, or equ Ing legislation, which apparently is of a special nature, is often of the most general beneficial consequences. Even the First Congress passed a tariff act that was avowedly for.the protection of manufacturers; but a protective tarift always has been defended as a means of promoting the general good through a particular approach; and the statute hooks are filled with acts for the Lenefit of shipping, commerce, and labor, ‘ v Now, what ‘s the farmer asking? Without trying to ecatalogue the re- medial measures that have been sug: gested In his bebalf; the principal pro- posals that bear directly on the Im- provement of his distributing and mar- keting relations may be summarized as follows i— First: stornge warehouses for cot- ton, wool, and tobacco, and elevators for grain, of suflicient capacity to meet the maximum demand on them at the peak of the marketing period. The farmer thinks that either private capl- of archalc [ | taT st farnish these facliities, of e state must erect .and own the eleva- tors and warehouses. Second: weighlng and grading of agricultural products, and certification thereof, to be done by impartial and disinterested public inspectors (thls Is already accomplished to some extent and graders), to eliminate underpay- Ing, overcharging, and unfair grading, and to facilitate the utilization of the stored products as the basis of credit. Third: a certainty of credit sufficient to enable.the marketing of products in_an orde by the federal licensing of welghers’ Tourth© (e Deparfment of Agricul- ture should collect, tabulate, surpma- rize, and rogularly and frequently pub- lish and distribute to the farmers, full Information from all the markets of the world, so that they shall be as well informed «f their selllng position as buyers novr are of their buying posi- tlon. Fifth: freedom to integrate the busi- ness of agticulture by means of con- solidated selling agencles, co-ordinat- ing and co-sperating In such way as to put the farmer on an equal footing with_the large buyers of his products, (Continued on Page 6) always found here. A_gain Open Under New Management The Mandarin Cafe is now under the man- agement of W. H. Short, an experienced and capable restaurant and cafe man, pert chefs have been secured and the cafe will be first-class in every respect. and properly prepared foods well served and courteous treatment will -be features Your trade is solicited and will be appreciated. Ex- Clean Mandarin Cafe ——SECOND STREET-— W. H. SHORT, Manager s CROCHETCRAF!‘ isthe most elaborate, most complete collection of modern crochet patterns and designs ever asseme bled in a single book. a It is brand new, just off the press, and never be. fore offered in America. 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