Indirectly the farmer must be relieved by a reduction of national and local taxation.  He must be assisted by the reorganization of the freight-rate structure which could reduce charges on his production.  To make this fully effective there ought to be railroad consolidations.  Cheaper fertilizers must be provided.

He must have organization.  His customer with whom he exchanges products o he farm for those of industry is organized, labor is organized, business is organized, and there is no way for agriculture to meet this unless it, too, is organized.  The acreage of wheat is too large.  Unless we can meet the world market at a profit, we must stop raising for export.  Organization would help to reduce acreage.  Systems of cooperative marketing created by the farmers themselves, supervised by competent management, without doubt would be of assistance, but, the can not wholly solve the problem.  Our agricultural schools ought to have thorough courses in the theory of organization and cooperative marketing.

Diversification is necessary.  Those farmers who raise their living on their land are not greatly in distress.  Such loans as are wisely needed to assist buying stock and other materials to start in this direction should be financed through a Government agency as a temporary and emergency expedient.

The remaining difficulty is the disposition of exportable wheat.  I do not favor the permanent interference of the Government in this problem.  That probably would increase the trouble by increasing production.  But it seems feasible to provide Government assistance to exports, and authority should be given the War Finance Corporation to grant, in its discretion, the most liberal terms of payment for fats and grains exported for the direct benefit of the farm.

MUSCLE SHOALS

The Government is undertaking to develop a great water-power project known as Muscle Shoals, on which it has expended many million dollars.  The work is still going on.  Subject to the right to retake in time of war, I recommend that this property with a location for auxiliary steam plant and rights of way be sold.  This would end the present burden of expense and should return to the Treasury the largest price possible to secure.

While the price is an important element, there is another consideration even more compelling.  The agriculture of the Nation needs a greater supply and lower cost of fertilizer.  This is now imported in large quantities.  The best information I can secure indicates that present methods of power production would not be able profitably to meet the price at which these imports can be sold.  To obtain a supply from this water power would require long and costly experimentation to perfect a process for cheap production.  Otherwise our purpose would fail completely.  It seems desirable, therefore, in order to protect and promote the public welfare, to have adequate covenants that such experimentation be made and carried on to success.  The great advantage of low-priced nitrates must be secured for the direct benefit of the farmers and the indirect benefit of the public in time of peace, and of the Government in time of war.  If this main object be accomplished, the amount of money received for the property is not a primary or major consideration.