Critic Coolidge

Calvin Coolidge last week indulged in his first major criticism of President Hoover. Just as the Federal Farm Board was preparing to spend its latest $150,000,000 in the wheat pit to peg prices,

Citizen Coolidge dug at the whole policy of Government stabilization in one of his daily news-syndicate articles.

Never personally fond of President Hoover,* Citizen Coolidge wrote: In the general field of agriculture, government interference in an attempt to maintain prices out of the Treasury is almost certain to make matters worse in stead of better. It disorganizes the whole economic fabric.

It is a wrong method because it does not work. It is better for every one in the end to let those who have made losses bear them than to try to shift them on to some one else. If we could have the courage to adopt this principle our recovery would be expedited. Price fixing, subsidies and government support will only produce unhealthy business.

This broad criticism of President Hoover's No. 1 farm policy caused much covert commotion in Washington. At the White House the "palace guards" (as the Hoover secretaries and advisers are called) vowed that it was Citizen Coolidge's opening bid for presidential consideration next year. Western agrarians openly mocked the attack on the Farm Board, called Mr. Coolidge "the farmers' arch-enemy." Meanwhile most Eastern editorial comment agreed with Critic Coolidge, inveighed all the louder against price stabilization as a crook-headed economic principle on which President Hoover, sooner or later, must do a politically painful about-face. Federal Farm Board Chairman Legge courteously replied: "Mr.

Coolidge or anyone else has the prerogative of expressing his own opinion. However, I believe the Farm Board is doing helpful work." Not so courteous, however, was Chairman Legge toward other critics.

When John Simpson, new president of the Farmers Union, charged the Board with deliberately depressing farm prices, Mr. Legge hotly retorted: "You can say to Mr. Simpson that any man making that statement is an unmitigated liar, and say it with my compliments!"

Mr. Simpson's answer: "I feel I could win over you in any name-calling contest. I've driven mules and called hogs. . . ." Senator Borah warned against "the day of reckoning" when the Farm Board comes to sell its wheat at a loss. Chairmen Legge replied: "Don't ask me to discuss cyclones. You know how scientists have defined a cyclone as superheated hot air that always runs amuck."

Meanwhile the Farm Board's wheat stablization operations produced topsy-turvy economic results. In the face of a falling world market the Board bought Chicago wheat around 76-c- per bu., pegged the domestic price at that leve. George S. Milnor, president of Grain Stabilization Corp., declared: "Domestic conditions do not justify lower prices and this company will continue . . . to maintain the present or a higher level."

Winnipeg wheat, out in the world marked, slumped 26-c- to 28-c- per bu. under the Chicago level. Liverpool prices, normally 15-c- per bu. above the Chicago price, were 15-c- below, at a 1896 low record. No on, not even Critic Coolidge, could say that price-fixing of wheat was not working at least temporarily.

But the artificially high U. S. price created a new threat--namely, nullification of the 42-c- wheat tariff. If the world price dropped another 10-c- to 15-c- per bu. money could be quickly made by shipping wheat to the U. S. and selling it to the Farm Board. Chairman Legge wrote to Senator Capper thus:

"This wheat situation seems to be getting worse every day. Inasmuch as [U. S.] millers will always pay a premium for Manitoba wheat, any further decline in the [world] market will probably result in wheat being imported from Canada. Probably the most effective method of dealing with this would be a temporary embargo on wheat imports."

Senator Capper promised to sponsor a resolution for a wheat embargo as the next adjunct to Stabilization.

* After the 1928 election President Coolidge was asked what he proposed to do about Muscle Shoals. His sarcastic reply: "Nothing, I'll leave that to the superman."

This file is automatically generated by a robot program, so reader's discretion is required.