VALUE AND PRICE AS RELATED TO FARM PRODUCTS 35 



that prices today either are or should be on the same level that they 

 were then ? Why ? 



42. What bearing, if any, does the tariff have upon supplies of 

 farm products in American markets ? 



43. Butter is selling wholesale at 27 cents per pound with a steady 

 market. Then the government warehouse report appears, showing 

 10,000,000 pounds of butter less in storage than there was a year ago 

 at this date. The price jumps up three cents within an hour. Explain 

 the meaning of this advance and each step in the process by which it 

 is brought about. Is it justifiable ? 



44. Is it conceivable that all the farmers producing a certain com- 

 modity might sell their product for less than some consumers would 

 pay for this total output ? How would it be possible for the farmers 

 to make sure that they were securing the maximum amount the 

 public was able and willing to pay ? Is this the result we should aim 

 to secure? How about the consumer's situation and the future of 

 the agricultural industry ? 



45. Do farmers by having control of supplies have a potential 

 control of prices? Are there any limitations upon the results they 

 can accomplish through the exercise of this power ? 



46. What difficulties of organization and administration would 

 confront the farmers of a given section in attempting to get together 

 to control the market by (a) holding their product for a certain price ? 

 (b) by limiting acreage in order to induce scarcity prices ? Illustrate 

 with reference to tobacco, milk, citrus fruits, apples, wheat, and cot- 

 ton. Give reasons in each case. 



Compare with the possibilities of industrial control in the case of 

 anthracite coal, petroleum, packing-house products, sugar, and farm 

 implements. 



47. May farmers organize to control prices without incurring the 

 penalities of our anti-trust laws ? Should they ? 



48. If you had control of the supply of a certain commodity, what 

 principles would you follow in deciding upon the monopoly price 

 which you would exact from buyers ? 



49. What is meant by " valorization " ? What functions, besides 

 merely naming a price, would the government have to undertake if it 

 attempted to valorize a given farm product ? 



50. Is there a difference in purpose in case the government names 

 a maximum price ? a minimum price ? What difficulties of adminis- 

 tration would there be in these cases? From whom would objec- 

 tions come to either of these policies ? Can you suggest any other 

 means by which the government might better accomplish the same 

 result ? 



