36 OUTLINES OF AGRICULTURAL ECONOMICS 



51. What was done to adjust cotton values in the fall of 1914? 

 What part did the government play in this ? What part did private 

 agencies play ? 



52. Does the establishing of conditions of free and open compe- 

 tition effect valorization upon a natural basis? What is needed to 

 insure such a competitive condition ? 



53. What is the process of cornering a market ? What limitations 

 are there upon the possibilities of doing so? What markets have 

 actually been cornered ? 



54. Can the farmer prevent the cornering of the market? 

 Always ? 



55. Are there many small markets within the larger market 

 process ? What do we mean by the cotton market, the wheat market, 

 or the egg market ? 



56. Does the world-market for cotton determine the price which 

 the local buyer pays ? Does the local buyer's price have any influence 

 upon Liverpool conditions ? 



57. What part do dealers play in the making of prices? What 

 is the "mechanism of the market" and what work does it perform? 



58. What does it mean to say that prices in a certain city are 

 "out of line with the general market" ? 



59. What is your idea of natural value ? of normal price ? 



60. Do natural values change from year to year ? Is the normal 

 price of beef in this country rising ? Does normal price depend upon 

 cost of production ? Whose cost, where some produce at lower costs 

 than others ? 



61. What does the wholesale grain or cotton or butter dealer mean 

 when he says that he considers prices above or below normal for this 

 year or this season or this particular moment ? Does he have costs 

 of production in mind ? 



62. In the case of staple crops would it be possible around harvest 

 time to compute what should be the normal price adjustment for that 

 season ? Do farmers and traders do this ? 



63. Is there a normal price for perishables ? 



64. Can the dealer in farm products set aside the laws of supply 

 and demand ? Can he take advantage of their operation ? Can he 

 shape them to his purpose? 



PROBLEMS 



1. The preamble to some resolutions of a certain "Taxpayers' 

 Club" in August, 1914, read as follows: "Whereas, We note with 

 alarm that the price of food products has risen far beyond that called 

 for by the laws of supply and demand; and Whereas, This body 

 believes that this bad practice can and should be stopped, and the 



