Economic essays

Bibliographic data

Monograph

Identifikator:: 1753623200

URN:: urn:nbn:de:zbw-retromon-136107

Document type:: Monograph

Title:: Economic essays

Place of publication:: New York

Publisher:: Macmillan

Year of publication:: 1927

Scope:: viii, 368 S.; Ill., graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: The holding movement in agriculture / Jesse E. Pope

Collection:: Economics Books

280 ECONOMIC ESSAYS IN HONOR OF JOHN BATES CLARK were formed for the purpose of holding till prices should recover. The grain was put in storage unhedged and against it the farmers were given credit based on what were considered conservative prices. However, the price continued to decline and the wheat was finally disposed of at prices greatly below those on which the advances to the growers had been based, with the result that the pools collapsed and the holding farmers suffered very severe losses: Undeterred by this experience, the advocates of pooling have continued to increase in number and much wheat has been pooled in the northwest and the southwest, with about the same outcome as in 1920." In this connection is to be noted that the difficulties encountered in increasing the price of coffee, sugar and raisins above the market are as nothing compared to. the difficul- ties of securing a super-market price for a staple crop like wheat. Wheat is a prime necessity. It is grown and consumed over practically the entire civilized world. Its consumption is not materially affected by either sentiment or agitation. It is grown in almost all climes by a vast number of farmers; and any slight stimulant, such as an increase in price, readily brings about an increased production. It is non-perishable and lends itself easily to transportation. It is bought and sold freely on the exchanges of the world. Every shred of information concerning existing supplies, prospects for future supplies, condition of growing crops, strength of demand, etec., is eagerly sought; and an army of experts are constantly at work supplying this information. In a word, wheat is grown and consumed in all parts of the world and its price is fixed in a world market. Therefore, when an attempt is made to raise the price above the market, difficulties of all sorts are met at every turn. The domestic price, if it be above the market, can be maintained in the face of foreign grain only by a high tariff. The resulting exportable surplus must be sold at a loss on the markets of the world and since, from the very nature of things, the undertaking is too great for private enter- prise, such a scheme cannot be put into operation except by the 1 The advocates of the Holding Movement have finally been forced to take cognizance of the enormous losses suffered by cooperatives in holding unhedged crops for higher prices and they were able to have included in the late Haugen-McNary Bill (Sec. 12) a section which provided that the Government should insure any cooperative holding association “for peri- ods of twelve months against decline in the market price of such commodity at the time of sale by the association from the market price of such com- modity at the time of delivery to the association.”

Access restriction

Copyright

fullscreen: Economic essays

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation