Agricultural Prices BY HENRY A. WALLACE Associate Editor of Wallaces’ Farmer [Illustration: [Logo]] WALLACE PUBLISHING COMPANY Eleventh and Walnut Sts. Des Moines, Iowa Publishers of Wallaces’ Farmer Copyright 1920 By the Wallace Publishing Company All Rights Reserved [Illustration] PREFACE This book is written for all those who may be interested in the matter of prices of agricultural products, but more especially for the farmers of the corn belt states, students of agricultural colleges, county agricultural agents, and leaders of farm organizations. Its purpose is to promote a better understanding of the factors which influence prices of farm products and stimulate an intelligent interest in statistical economics. Aside from a rather small number of specialists at the larger terminal markets, few of the people who buy or sell farm products have any very definite ideas concerning the legitimate price-making forces. A better understanding of such forces by farmers generally should in itself gradually bring about prices which will approach more nearly cost of production, and tend to reduce the violent fluctuations above and below the compensatory average. A careful study of the facts herein set forth should aid leaders of farm organizations to avoid costly mistakes which too often result from hasty and ill-considered action. While not written primarily for economists, I trust many of them may find something of practical value in the matter herein. They may, perhaps, feel that at times I have not been as respectful as they would like toward many of the ideas of the classical school, but I have no apologies to offer on this score. In anticipation of possible criticism of my treatment of cost of production, I shall ask them to remember that I use “cost of production” as a ratio concept (if need be, a shifting ratio) and not as a cost-accounting concept. I may say, also, that I hold to no particular philosophy of economics unless a very firm belief in the utility of thoro mathematical price studies might be considered as constituting the basis of a philosophy. While the book is frankly written from the farmer’s point of view, there is no bias whatsoever to the mathematics used, and it is believed that so far as it may influence opinion and practice, the results will in the long run benefit both farm producer and city consumer.