The Bismarck Tribune Newspaper, October 11, 1923, Page 10

AT PROBLEM INTERNATIONAL, DR. COULTER TELLS FARM CONGRESS; REVIEWS ENTIRE FIELD lereat spring wheat belts but also on Problem Affects Not Only The Wheat Belt But All Farmers Who Grow Wheat, Speaker Tells Congress "Fargo, N. D., Oct. 11.—Thet the wheat problem of the United States must be ‘considered in its international aspects as wheat is placed on & world market, that it is a long-time problem which cannot be fully answered by but temporary relief, that the wheat problem is ome which affects not only the wheat belt as such, but embraces all farmers who grow wheat, are the significant points emphasized yesterday by Dr. John Lee Coulter, president of the North Dakota Agricultural ‘college, in his address to assembled farmers, bankers, business men and agricultural leaders assembled at the seventeenth annual session of the Intermational Farm Congress in Kansas City. Urging diversified farming ion, and the adoption er marketing building up of mands, the reorganization of produc- tion and the lowering of transporta- tion costs, President Coulter outlined & policy which he declared to be one that would put the wheat farmer back on his feet and yet would not be tearing down one industry in or- der to build up another. The address as delivered at Kan- sas City yesterday follows: Problem of Wheat Belt Any attempt to analyze the pro- blem of the wheat growers of the United States must nec ily touch upon three phases of the sub- ject. It is not enough to review the wheat situation in the United ion because wheat is a non-perishable product and moves easily from nation to na- tion. Second: It is not enough to re- view the immediate situation —the situation as it exists today. It is necessary to review the movement over a series of years, because wheat is non-perishable and large surplus amounts may be carried over from one year to another. Also wheat and wheat substitutes are so universally gtown over the rid that the acre- age can be expanded or contracted very rapidly if producers are in- formed and wish to expand tract. Finally, there are extraordinary yields both high and low. which may pile up surpluses or wipe them out. Third: It is not enough ‘to review the situation in the socalled special wheat belt! or areas. It is equally necessary to teview the situation use the wheat as feed and enough other farmers will stop raising wheat and raise timothy, clover or -| alfalfa or some other product which might be used in comparison. Thus it may of wheat has reached a general min- imum for the world and mo extraor- inary surplus is likely to be car- ried over so long as the market for poultry and eggs, pork, beef and oth- er dairy products, wool, etc., remains firm. In other worda, while live stock products maintain the present general level wheat prite cannot go farther down or wheat will be fed to livestock in large quantities and farmers will turn to the production of feed of different kind: But, as noted above, specialised wheat growing is impossible at the present world price: In general ever the United States, because of Tabor shortage, high wages, the high cost of everything else entering into wheat production, and the fact that free rent is a matter.of history, eith- er rent or interest must now counted in as part of the cost. The facts together with low yields make wheat growing in specialized tricts or belts unprofitable with the present world market. Let us frankly face the fact that there is no possibility of raising tl world’s market except when there is a short crop for the World whole. It is unthinkable that the ni tions of the earth could get togeth- er. In fact the consumers of the world want if any thing lower, pric rather than higher, Cannot Raise Price. Since it. is ineonceivable that the d without o wheat can- throughout the country on the mil-} 14. Mona of diversified farms as well as on the much smaller number of special wheat growing farms. International Problem -Wheat ‘being essentially non-per- ishable and to measure, grade and store, is a standard interntaional product, especially since people all over the world give it a permanent place in their diet. All people u: wheat or other cereal in the form of bread or other similar form. The United States almost from colo ial days produced more than the re- has been an exporting nation. has therefore contributed to tl lid supply. Her exported surplas s had to compete with the cheap- est wheat from any and all of the other countries and this in turn h established the basic price for the wheat consumed at home. While there was still an abundance of free land and while immigrati moved without restraint and labor was ch thia country could compete with world in the markets of the world. Tariff on imports so far as wheat was concerned was merely an expres- sion of policy effect, because grain was constantly flowing out and down over the dam and never trying to climb up and in. No More Free Land But now free land may be consid- ered as a matter of history and im- migration is now restricted. Impor- tant items of rent or interest and of wages must now be counted in the cost. of producing wheat. Furth- ermore the wheat area has gradually spread from the Atlantic Coast west- ward -until now almost all parts of the country have tried wheat and have run their course as special wheat areas. No longer are there so be considered in the Rees cost of production per bashel. It would seem quite/‘definite that there are no longer/any large special wheat areas in the United States which can compete with the world market, on aceount of such items as rent,, interést, wages, transportation, high cost of all other items entering into production and low. yields. It growing areas in other parts of the world will have run'their course. the United States is perfectly clear. That is to say there are few if any large stretches where ‘ specialized | P! PEF in the United States we face clearly two alternatives. These are —first, we: must either qump our sur- plus wheat produced on~ Ameriesn farms. on to the- world market at world prices and force American con- sumers to make, up the loss—thus make wheat growing profitable ..un- der these circumstances, or we must stop raising wheat as a specialized ies all of the comforts of modern citizenship -or: live the li of peons » We do not wish for this condition in: our country, even if farmers were willing to live in this way. We have therefore clearly be- fore us thé two practi¢al altefna- would not be milling as ime or per- manent policy to agree to support- ing. an agricultural, program which contemplated ov ican people were losses. If on the average we pro- duced two hundred million bushels more than our requirements at loss of 60 cents per bushel it would bea loss of one hundred millide dol- lars per year. , If th illion bus- Id prices and of one hundred million doljers either through taxa- tion or by paying their bread, I am s: Ameriean people would not agree to the;/policy. As s matter of long- timle hopeless jo think ij of continuing large special wheat belts. As a matter of temporary relicf during a period of reorgan’ and readjustment in farming in the special wheat belts, I have for three years been pleading with our peo- ple and our government to stab- lish the Uniteg States Grain C Portation to carry on business in somewhat the same manner as many manufacturing and: other corpora- tions do. Sel] on World Market, That is to say, sell the American surplus on the world market and then bring the home market up to a in Paint equal to the world market pl nd transportation’ costs. no doubt but what this is @ thoroughly practical and possible ff acceptable to the American Dur government set @ definite date a few years in ad- vance afid by it the value of pa- circulating medium up to a fair exchange basi Eire after time in the history of wernments have resorted expediency in order of the people ang no institutions should suffer. a the general farms of the nation. A government and a people who will ask special groups such as farmers are to make auch a sacrifice during a period of war coulg very well show their appreciation at the close of the war, at least as a short- time policy with proper warning, so that farmers might be able to re-or* ganize their farming operation to a sound peace-time basis. It would be surprising to me if the farmers of this country would support ai state or federal administration whi failed to thus deal fairly with them, true that a succeeding admin- is ion of an opposit tty might equally fail to do adequate ju: but at least the farmers would have expressed themselves in a language which is understood best by those in public life. Diversification. Earlier I briefly discussed the in- ternational characteristics of wheat production and consumption. A ie lowed this a brief r temporary measures which might very well be taken by a national gov- ernment or a people to protect an industry which had been over-ex- Pi is now turn to the matter of permanent,or long-time policy. Any far-seeing, qualified student of the problem, I think, will clearly recog- nize that no nation or people are likely. over an indefinite period to make up deficits for any one class. To do this is an unsound, economic policy. Assuming furthermore that our government may at last provide tem- porary protection, it’ should be long- time frogram?~ Clearly it organized diversified farming. needless for me in this short to attempt to lay out the plans for the wheat beltsof Texas, or North Dakota, or any of the states between, or for any other of the special wheat growing belts. Each state must work this out for itself in co;operation with the Federal departm The system will vary from. state to state. Suffice it to'say that whi at the present time wheat is the ou fanding American crop:menaced by the world situati other g ple crops such as cotten, year find. itself in th tion. Agriculture reorganized so that every farm has employment for power, machin ry and labor through. out the year during all the s ems to be the long-time program esnenitial’* to -sucet Wheat * is representative grown: ‘éwen today in parts of the United -Btate: a system of diver- sified farming ‘without loss and.even with. some profit to the grower. This same can-be accomplished over much if not all of the specia] wheat bel! by’ properly adjusted farm’ practices or farm agement. Adjust Farm Practices. ‘It must--be~recognized;-: however, et this-is not a: matter of a few great areas cannot be | 5; ys. ny Pacis ré-organized over a period of: ten to ‘twénty-five years.- Farmers believing in the special wheat giowing snd called’ upon by the government to pursue thi policy have gone wily into debt and for matter of a decade or longer before they get reorgt ized’ without special help and t hundreds of thou- their farms in the some very especial good -fortune comes both as regards Federal reorganization of our prob- lem and an improved world situation, An iad Sees therefore must ‘have in ‘& considerable period of years. ind state’ government offi- cials as wel! the Agricultural col- lege and Experiment stations must lend a hand. i Acts For Wheat Farmer Such an address as this, brief as it'is would be. pronounced faulty if the speaker failed to touch upon other proposals made, especially since many of them have both. tem- Porary and permanent merit and will be of ‘real service to the wheat growers. In this address, I have tried, principally, however, to point out the world situation and the broad, general program which we must all follow if we are to be sav- ed, Under these special topics which I shall barely mention there are those who would carry on campaigns for an increase in the consumption of wheat and- wheat products, and this is well. If demand can be in- creased it will show itself in the prices paid unless, surpluses increase correspondingly, and so I would say all strength to the hands of those trying to ine: ye consump- ire those who would measure is useless as an ‘organized, Program) since the onjy success I can seo along line not to advo- cate leas wh the planting _of more profitable crops. The wheat acreage will be reduced automatically as the other crops take its place. strongly advised and urged this pro- gram and it is just as clear today as it was twenty-five years.ago. This would be a wise program for .our farmers to ptrsue, Great wastes xist in our present marketing sys- tem. Our surpluses are dumped 3 on the markets. Transportation Oklahoma, who the spe to consider ousting Governor. Walton from ‘office on the skids of impeach- ment. solve the problem of jon wheat farm- are high, in fact un- nably and unhecessarily high, it should be pointed out that taxes are a comparatively insignificant item in the cost of producing a bus- hel of wheat. I believe 1.see before me a wave of public sentiment ris- ing on the horizon which within the next decade or two will wife away, or at least consolidate hundreds up-) on handreds of municipal, state and national commissions and boards, Taxes Not the Solution Taxes can and should be‘ reduced both local, state and national but e rge measure to this end. There ore those who point to transportation ‘charg as being beyond all rea perfectly clear thut teanephetation is at the present time sddi upe@ large share-Uf ‘the price*reesived. by the grower for his product, -but all public records .seem: to indicate that trgnsportation) companies.-ate , not making excessive profits, unlé Y | deed, we go back to the original is- sue of stocks, bonds and other se upon which we ar time paying interest. inthe form of freight rate: But if we attack values must time, attack ies in the cities, ges and the ‘values of swell. - Indeed the-en- tire basis of our American yatem of private ownership‘ of ‘property must stand or ‘fall and therefore let us recognize that there are in ge eral ‘no excessive’ profits being, made by those who have inv transportation systems if our public reports sre to be relied upon, is useless to attempt to solve, .o1 the problem of our farmers, by’ tearing down ing some other great induatry. ‘New Market Rontes It. would seem to ‘me that the true way to reduce our transportation chasges is; first,.to distribute the movement of ‘our Products verily over the year,.and second, to reduce the cost by actually shortening the distance to the market by some such program asthe St. Lawrence canal. Such measures .as these would in the course of a few years reduce the cost by bushel when measured by the gin of profit or loss, Il strength to the hands of ‘those striving for the deep water way to the Atlantic and also to those who .are trying to distribute mote evenly.‘the’ movement. of our, farm products throughout’ the. season. There are those who would reduce the cost of everything: which the farmer-must buy. This could readi- ly be done either by. repealing the Immigration ‘Law and ‘bringing ins flood of-cheap labor, lowering wages, and in general bringing down: coats of production’ of all other’ materials or a repeal of all tariffs, thus per- mitting a flood of: cheaper. materials to move in from other countries. This in itself would force the cute ting of wage: id reducing of coats of production in order that “Améri- can manufacturers might compete with foreign goods: I for one would not commend either of these solu- cent of our commerce, manufactur- other activities will prosper why tear down all these while trying to of that group could so readily be im. proved by a policy asysound from the “as any of the whether it .he, immigration restric- program: or other.” Baila Up, Not Tear Down . iat jot: teardown but let us bui Let us’ build a ‘temporary structure of protection to our wheat growers during the. period ,of .read- justment and:let.us build ‘pefmanent- ly a reorganize ystem of farming in ouy special belts ew well as most “basis, first, S me to: reorganize. to improve. veda oo ane . crag te ingest 9 t tions, I would say when ninety per-|' ing, transportation, finance and all | {i improve the condition of a special || group, especially, when ‘the condition age, : tion, the protective tariff, the Feder- | ‘This is’ very well but in a large jal Re: } - a er Bo) Every good ship; nearing port, takes e a pilot, Usually, the law requires it. .The ‘pilot know the channel... With his capable hands at the heli, the vessel is safe. Without him, there i is danger of the ‘aoata.” When you set: sail on a shopping tour you, too, should have .a pilot. Everybody needs one. And well informed shoppers ants have one advertising. _ Advertising eet aor off the : rocks of extravagance and waste,. It tales Qu. straight into the: port! economy. It tells you plainly white t 6: go for what, t you ‘want. ‘Tt shows you how to save steps—and money— and. time. By watching it carefully, eich dig, ou are. abs to boy to het advantige, “Otety, the advertisements will . keep you. from making an unwise purchase by pointing out just why one. artidle suits you better than an- other. It points out for you the pick ; of the country’ 8 market and the se- leetion of the particular kind, shape, size. and color that best suits your t ‘ante nd. fits your pocket: ook,