REPORT OF THE SECRETARY OF AGRICULTURE. 13 



mutter is of such tremeridous importance to our entire population that 

 it should be recognized everywhere as a national problem and dealt 

 with as such. 



A\'e must adopt every feasible means to enable the farmer to 

 adjust himself to changes in economic conditions such as have re- 

 cently occurred. It ought to be a fact that, when the farms of the 

 country produce abundantly, the consuming public will be liberally 

 supplied with food at reasonable prices, the farmer taking his 

 profit because of large production and the consumer receiving his 

 increment of benefit from having available an adequate supply at 

 a reasonable cost. In general, we should expect it to be true that 

 the farmer's condition is improved in direct proportion to the num- 

 ber of busliels of wheat or corn or the number of bales of cotton he 

 produces. It frequently happens, however, that, when all farmers 

 have extraordinarily good crops during the same year, low prices 

 leave him Avorse off than he has been in other years with short crops 

 and high prices. One thing that would help to remedy this is some 

 means of carrying over to periods of low production, wherever feasi- 

 ble, the surplus from years of high production. More attention to 

 marketing and the development of the latent consumption demand in 

 years of large supply also would be helpful. 



STUDY OP WORLD COXDITIOXS. 



The Department of Agriculture has been fully alive to the existing 

 situation and has been keeping in close touch with market conditions, 

 ready at all times to render any feasible aid in reducing the losses 

 suffered by farmers on account of the price declines. The drop in 

 the price of wheat was especially sharp and it was charged, in many 

 quarters, that this was due to manipulation, control, or other arti- 

 ficial causes, as well as to the importation of Canadian wheat into 

 this country. You, Mr. President, therefore, asked the Federal Trade 

 (""ommission immediately to ascertain whether there was any basis for 

 this charge, and I understand that the commission is actively at work 

 on the problem. At the same time, you requested the Department of 

 Agriculture to obtain all available information regarding the world 

 supply of and demand for wheat, including the importation of 

 Canadian wheat and its probable effect on the domestic market, and 

 the department has proceeded vigorously with this task. Recog- 

 nizing, also, that the depressed market situation was due, in part at 

 least, to conditions following the World War and to the lack of buy- 

 ing power and decreased consumption in European countries, a com- 

 mittee was appointed in the department to canvass the entire agri- 

 cultural situation with the view of collecting all available data having 

 any bearing upon it. These data will enable us to see more clearly the 

 problems that lie ahead of us. As soon as the material can be brought 



