228 AGRICULTURAL PRICES AND VALORIZATION 



In the organized markets, such as the grain exchanges, and 

 cotton exchanges, the market price is set by a bargaining process, 

 where both sides buyers and sellers are fairly equal in strength 

 and in knowledge of the supply and demand factors. But as the 

 market becomes more decentralized, more local, and more unorgan- 

 ized, the factors of bargaining power and custom gain more import- 

 ance and the limits set by supply and demand spread farther 

 apart the ring becomes larger. 



A "Just Price." It is likely that the individual farmer's weak- 

 ness as a bargaining factor in price fixing has given rise to con- 

 siderable discontent and suspicion towards the market on the part 

 of the farmer. He feels that certain "middlemen" who merely 

 " handle" his product have grown wealthy. So the farmer comes 

 to picture to himself an economic system wherein "big business" 

 has waxed fat, in sloth and ease, by exploiting the farmer and 

 keeping him toiling at his hard and strenuous tasks. Of course 

 this picture leaves out of view the many "middlemen" who have 

 failed in their enterprises and lost their capital, and also leaves 

 out that other consideration, namely, that the successful "middle- 

 men," surviving strong competition, do it by supplying a service. 

 Some destructive agitators tell the farmers to abolish "big busi- 

 ness." Some advisers tell them to organize, bargaining collec- 

 tively, and thus conduct big business themselves. It is interesting 

 to note in this connection that in western Canada where the farmers 

 have scored such a success along cooperative lines through their 

 United Grain Growers Company (see page 165) the consumers 

 are already applying to these farmers such appellations as "big 

 business" and "profiteers." 4 It is no wonder, therefore, that in 

 the existing confusion concerning price making and price ethics, 

 more and more voices are being raised asking for governmental 

 interference in price fixing or actual price fixing by the govern- 

 ment. This demand for a "just price" is easy to comprehend. 

 But "letting the Government do it" is a solution which may not 

 be as easy and simple as many a person seems to think. Price 

 fixing by the government as a war measure, but not as an economic 

 measure, was thoroughly tested in the World War, by Germany, 

 Italy, France, England, United States, and other countries. The 

 policy was tried and adhered to, as part of the military strategy 

 of the warring country. As an economic measure it was admittedly 

 clumsy and wasteful, and did not result in "just prices" prices 



4 Debate in House of Commons, Ottawa; See Grain Growers Guide, 

 Winnipeg, July 2, 1919. 



