The Tariff and the Farmer. 



21 



The Adverse Trade Position of Agriculture. 



(1860-1900.) 



Manufacture. Agriculture. 



Market Conditions. 



Most favor able. 



Due to the great demand of 

 a rapidly growing nation 

 for transportation sup- 

 plies, for buildings, for 

 farm and manufacturing 

 machinery, and for prod- 

 ucts required for dispatch 

 of business and supply the 

 many wants of civilization. 



Most imfavorahle. 



Due to the rapid develop- 

 ment of the west and south- 

 west by the railroad system, 

 whereby 92,000 new farms 

 annually increased the ever- 

 growing surplus of such 

 products. 



Can he ascertained. 



Expense in terms of 

 lars and cents. 



dol- 



The effect. 



(1) Price is held to the 

 level of cost. 



(2) When cost increases, 

 the prices of products rise 

 in equal measure. Busi- 

 ness floats safely on the 

 rising tide. 



Cost of Production. 



Cannot he ascertained. 



Cost dependent on articles 

 of indetinite value pro- 

 duced on the farm. 



The effect. 



(1) Blind competition — 

 price driven to the lowest 

 level. 



(2) When cost increases, 

 there is no connecting auto- 

 matic device to cause an 

 equal rise in the value of 

 products. If supply is 

 large to demand, price may 

 fall in the face of advanc- 

 ing cost. 



