THE ECONOMICS OF CROP DISPOSAL. 7 



or in the way of holding them off the market in times of price depre>- 

 sion. We already have elaborate systems lor steadying the market 

 in the form of crop reports and market ({notations, but there is still 

 need for improvement in the way of enabling the producer to share 

 in the benefits resulting from the improved trade conditions which 

 are now available but are not generally used. This is particularly 

 true in the case of the cotton crop. 



CERTIFICATION OF CROPS. 



As matters stand at present the man who produces cotton must sell 

 his crop before he can conveniently realize any money on it, except, 

 of course, where he borrows money on it before it is produced, as is 

 too often the case. This is not so generally true of the man who pro- 

 duces grain. It is possible for the grain farmer, if the market condi- 

 tions are not satisfactory, to borrow money on his crop at a low rate 

 of interest, meet his obligations incurred in its production, and wait 

 calmly for the market to come up to a point where he can sell at a 

 profit. This advantage of the grain man over the cotton man is due 

 to the fact that it is possible to certificate grain in storage in such a 

 way as to make it a safe and satisfactory collateral for loans. This 

 is not yet true with regard to cotton, though it would seem quite 

 possible to provide such a system for general use. 



I have not yet touched upon the subject of market requirements 

 and prejudices. Under our present industrial conditions the producer 

 and the consumer are seldom in direct contact. The products of our 

 staple crops must pass through many hands. One unfortunate result 

 is that the needs and discriminations of the consumer fail of reflec- 

 tion back through these devious trade channels to the producer. This 

 is particularly true with respect to such commodities as are not 

 utilized on or near the farm. Unless the producer can be made to 

 feel directly the practical effect of the consumer's discriminations he 

 will be guided in his choice of varieties, as well as in handling and 

 marketing, by what suits his own particular fancy or preconceived 

 and often inaccurate ideas of what the market demands. 



The acute need that has been felt for improved methods of grad- 

 ing and standardizing our staple crop products has been due chiefly 

 to this fact. It is sought through such improvements to bring about 

 conditions more favorable for impressing upon the producer in a 

 direct and effective way what the consumer wants and is willing to 

 pay for. With this information the farmer may then decide intelli- 

 gently whether the premium paid for high quality is sufficient to 

 offset the lessened yield or the larger cost of production which may 

 be attendant factors. 

 [Cir. 118.] 



