Jasper County Democrat, Volume 23, Number 74, Rensselaer, Jasper County, 11 December 1920 — THE DEMANDS 11, 1920 [ARTICLE]

THE DEMANDS 11, 1920

There will be general sympahy Vrith the demand of the American Farm Bureau Federation, in session In this city, that “congress give immediate consideration to the necessity of opening foreign markets to the products of American agriculture and industry.” To this end the federation urges “such legislation or other action as may be expedient to bring about active trade relations with the central as well as the other powers of Europe.” Nothing would do as much to bring about the desired condition as the prompt ratification of the Versailles treaty. If the farmers will largely center their efforts on that they will further their own interests and at the same time render a great service to other industries, and to the country generally. Wholly inconsistent with this policy is the demand that “an embargo be placed on the importation of such agricultural products as come into destructive competition with American products. The effect of this might easily be to close the European markets to these products. The price of our wheat is fixed in foreign markets where our surplus is disposed of, and no embargo could possibly change that fact. We have a surplus of almost everything. This is notably trud of the farmer. The lit,tle wheat that is imported probably does not even begin to take the place of that exported. It is for these reasons that the farmer has al-

ways got the worst of It In tariff legislation. For he could not be protected, while he was compelled to pay for protection to others.

If other industries should make a demand for an embargo as the result of prohibiUve duties, and this demand of the farmers would furnish an excellent precedent, our foreign trade would be very severely crippled. Under such conditions our government would not be able to do much in way of "opening foreign markets to the products of American agriculture and industry.” The nations that were made the victims of our embargo would, as far as possible, make their purchases elsewhere. And it would be strange if some of them did not find a way directly to retaliate. We can open foreign markets to our products while totally closing our market to foreign products. The effect would be to insure the ultimate fall of the farmers’ prices because of the cutting off of all foreign demand. Another demand is virtually for a moratorium. For it that thp Federal Reserve bank shall extend and renew farmers’ obligations that have been rediscounted through the Federal Reserve bank. Here again there are many merchants and manufacturers who find it difficult; to meet their obligations out of the proceeds of goods that they are forced to sell at very small profit, often at no profit at all, and sometimes at an actual loss. Nor should it be forgotten that banks are debtors, as well as creditors, and that they can not meet their liabilities — as we saw the other day in North Dakota —unless t,hey can realize on their assets. In easing matters as much as possible for the farmers, as well as all others caught in a falling market, the government must, if it would serve the Interests of all, not do anything in violation of sound economic and financial principles. Nor should it be forgotten that although conditions now are bad for the sellers, they have for many months been extremely hard for the buyers.-—lndianapolis News.