AGRICULTURAL RELIEF

679
Unless 1t 18 intended to make the tariff apply to the benefits of
agriculture, and to prevent world prices and world conditions from
establishing our prices 1n staple commodities, there is no need for
legislation as far as a great many of the most important Crops are
concerned.

When you talk about establishing a board to deal with these
problems, without providing a sound and dependable source of funds
to take care of losses incurred in maintaining a market in this coun-
try above world prices as we operate now, it is pure nonsense.

To set up another agency to go into the market to buy at a low
price and sell at a higher price, would be ridiculous. We have too
many agencles operating on that basis now—so many that to main-
tain them all forces a wider margin than is justified between what
the farmer receives and what the world market will pay, in order
that those engaged in that business can make a living. The more
agencies there are operating on that basis the less the farmer receives
in the long run.

In the case of wheat we look up the Liverpool quotations, deduct
26 cents or so, depending on the part of the country you live in, for
freight, add a little for overhead expenses, estiinate what can be
gained by the mixing process, then the price is fixed and quoted, and
that almost invariably establishes the price of all the wheat that
changes hands in this country regardless of where it is used or con-
sumed. The result is that instead of selling at world price plus
tariff, we who grow wheat in this country get world price minus
transportation. The result is that the wage earners of Europe
generally pay around 26 cents a bushel more for wheat than the wage
earners of America, although the European laborer receives only
about a third of the wage that is paid in this country.

This condition continues throughout the year and from year to
year, as long as there is an estimated surplus in this country. It 1s
not only a real surplus existing that does the harm, but an estinated
one has the same effect. At the end of the year we find there has
not been too much wheat, but that it has all been consumed, except
the normal carryover and if that is a little larger than average by
the end of the next year it is all gone and the world is better off by
having it, everyone except the farmer himself.

The world is not producing too much wheat or corn or hogs or
cattle or cotton. The world production of these crops is all consumed,
and yet at times millions go hungry and are poorly and insufficiently
dressed.

I hope we can get at the problem, that is to provide the means
whereby prices can be meintained that will give to the farmer their
cost of production plus a reasonable profit. We can only do that by
maintaining a price ecuitable with prices of all other commodities,
which are maintained by artificial means such as tariffs and 1mmi-

ration laws. } .
© If this brings a problem of overproduction—which I do not believe
it will—let us meet that problem when it appears. Just a glance
backward over the years that we produced too much, as has been
argued, should suffice. Where hast all gone to? Where is it to-day?