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York 14609 USA (716) 482- OJOO- Phone (716) 288- 5989 -Fox r-c'^/^^^.2g.<7r ^ SOME OCCURRENCES AND CONDITIONS OVER- SEAS WfflCH AFFECT THE PRODUCTION AND MARKETING OF CANADIAN AGRICULTURAL PRODUCTS -*#.. 817MMARY OF AN ADDRESS JAMES W. ROBERTSON BEFORE THE STANDING COMMITTEE ON AGRICULTURE AND COLONIZATION OF THE HOUSE OF COMMONS OF CANADA AND TYPICAL OF OTHER ADDRESSES AT CONFERFNCES AND PUBLIC MEETINGS W731— 1 OTTA^ !' 3. Dl LABROQUEj a TACHfi PRINTER TO THE KINO'S MOST EXCBI^LENT MAJESTT 1920. FOREWORD Dr. Jan. W. Rolurtsod wnn one- of thf volunt.cr war worki m of rurmda 'rem AiiKu.t. 1!M4. uf..'. AuKi..-t. IfU!.. P.,rt «. vice ot Canada iii ..ipiiiK tiir F.....1 ('..i,troII,.r. Jlu- Canada Food Hoard, and Hi.. I»c|iartnient of Auriculturf. to l,rin>r al.'mt tlir >fr.at..|.t posnild.' m.-aaur." of voluntary co-op.Tatinn toward., tlie iiuT.iH.d pro.lu.'tion of food supplies, tlie reduction of the <„n:.umption of such f.od.s a.s w.rc re-iuir.-d by the Allies and the prevention of waste. In the early summer of IKIM. Dr. Kobert.son wo* n>ked hv the Minister of Agriculture to ko overseas, ns Keprc^sentative of the Department of Agriculture and the Canada Food Hoard, in order to obs.rve. in (ireut Hritain France aud Italy, the situation in respect to food supj.liw. to learn all he could, and to interpret and report to Canada on the conditions and needs of th. European Allies, to the end that Cauada might play her full part, in the very best way, in ppodueiiiK foodstuffs a> one of her contributions towards winning the war. Dr. Robertson returned to Canada in August, IdlP. Later he was requested to return to Europe as Representative of the Department of Agriculture to obtain and give infonnatiou in connection with Canadian food supplies. Before the armistice was arranjjed, the Prime Minister invited him to accompany the Cana- dian Peace Conference Delegation to London and Paris as the Representative of the Department of Agriculture. At Paris he was apponted Canadian Director of Food Supplies, with membership in the Food Section of the Supreme Economic Council. After Dr. Robertson's return to Canada at the end of July, 1919, the Minister of Agriculture re<]ue9ted him to complete his overseas mission by visiting the various provinces for the following purposes :— (a) To hold conferences with the staffs of the Provincial Departments of Agriculture in order to inform them at first hand of the occurrences in (treat Britain and on the continent, both before the signing of the armistice and during the Peace Conference, which had a direct bearing on the marketing and other economic conditions so far as these affect the methods of marketing and the demand and prospects for Canadian agricultural products; (b) To address meetings of leading farmers and others in order to help them to understand the occurrences and conditions just indicated; (c) To accept invitations from Boards of Trade, Canadian Clubs, Rotary Clubs, Kiwanis Clubs, etc.. in order to give a more general and popular presentation of some aspects of the same subject to the business and! professional men in different localities. Now that that mis-sion is completed, it has been deemed desirable to publish a summary of an address before the Standing Committee on Agriculture and Colonization of the House of Commons, on April 20, l!ti>0. and typical of many- other addresses delivered at conferences and public nicetiiifrs from October, 1919 The matter is left in the style of expression used by a speaker in addressing au audience. 79731— a Some Occurrencen and Conditions Overseas which Affect the Production and Marketi >g of Canadian Agricultural Products. I have ■ very iim|)]«> duty, but not an <'a»v msk. I am to si rvc you ns best I an by tryiiij? to help you to urulerdtniul «onu' of the occurrtnci'* and conditicnii roNultinK from the war whu'h have a direct btMirintr upon the production and marltand, leav- infr you to draw your own conclu- •ionx. I wa8 overseaii three time* during the war with exceptional opportuni- ties for observing and learning, al- though not with very grave responsi- bilitic'8 on gome o<>caAions. I will not speak of my visit to France in 1910 except to say that I saw 8om» of the Canadians at the Somme. I dc not need to go to Doro's picture of " The Mount of Transfiguration " to learn how men look when under the exalting influ- ence of («uprr'mo devotion to a great lause. I have seen better than pic- tures, I have seen the men themselves. It is a memory worth cherishing that th.>se men were fairly aglow with confidenei^ in their cause and devo- tion to it, although some of them might die — but not perish — in up- holding it. In the early summer of 1918, I wi j?ked by the fJovernmcnt to go overseas as Kepresentative of the De- partment o) Agrici Iture and the Can- ada Food ^oard in order to observe in Great Britain, France and Italy the conditions in respect to food sup- plies, to learn all I could, and to ii- terpret to Canada the conditions and iieetU for the i urp<>«c of helping Can- a.la I. iihiy her lull part, in the very best Wiiy, in providing foodxtuffs as "lie of her contributions towards win- ning the war. Kvery facility waa given by the authorities concerned in Kngland, France and Italy, and I came back to Canada in August. Later it was decided that I shoidd return to Europe as Reprcsentativ* of the Department of Agriculture to be on the tpot to obtain and give information in connection with Cana- dian food supplies. In November, before the armistice was signed, the Prime Minsiter invited me to accom- pany the Canadian Peace Conference delegation to London and Paris as Representative of the Department of Agriculture. I appreciated pro- foundly the honour and responsibility of serving the (iovernment and ..e agricultural interests of Canada in connection with the Peace Confcren.'e ond the disposal in Europe of the balances of the exportable surplus. - of food commodities provided in r ■ spouse to the wnr i)roduction ■ .n- paigns. The following is taken from the rej)opt of Sir William (ioode, British ^/irector of Reli(< to His Majesty's Secretary of State for Foreign Af- fairs : " InvnluiiMo advice was received from the I'ri'iruers and reprtrsenta- tives of the Dominion!-- at the Peace Confe.ence in Paris, jiarticularly from Dr. .1. \V. Robertson, (\M.(}., ' who, on the unanimous invitation of Mr. Hoover and his allied col- leiigue^, attendee the meetings of the Relief Section on behalf of the Canadian Government.'' Jl«w IxpecUtioM Icgtrd'af Cuftda. Befnro I «|M*iik of what I Irarnt •• to the foiiii lituntioii and thu niH!) (>*t<<«>ni and i>x|H><'tatiuii« of Europe and the United State* — (I met many eminent Ameriean* in Britain, France and Italy). That new ri'foirnition of Canada— and new ex- pe<'tation from her — wa* banted prin- eipally on what Canada had done thrDiiKJi four channel*: her army, food (uppliea, munitions, and Red Croaa lervioe. The fighting of the Canadian uaj hai given m fame that will endure. Perhaps Canadians pay less heed to that than do the British, or the French, or the lUtliana, or the Ameri- cam. Our people as yet do not gen- erally know how much our army did; they do not appreciate to the full what matrniHcent service to the Al- lied cause the (.'unadiuii Corps ren- dered. The estimate of Europe is that it was on>> of the best iiKhtiuK units on the whole Western front. Not that our men were h raver or moVo 'iit'IliKeiit tlmii the others — no men could have Immmi braver — but the Ciuindian Divisions had been so Ioiik toKotlier — they were not shifted about us the other divisions were from army to army — that as a corps their leaders knew what each part could do l>est, and as component parts of the corps they had diveloiK'd a aisc Mline com- bined with eomradesh' 'ouk them- aelves that could stand the severest strain and ffrow stroiiKest in times of >?reatest stress. Thus it came about that the '~'anadian Corns was used as a spear-head during the last hundn d days of the war to break through some of the most difficult places and at the same tim. break down the moral* of the Omnan*— and that with light cHsualtieit to themselvea in view >f what tiny aecoiii|iliiihi*over, a new interest was taken in Canadi b<>eause of what the farm- ers bad done, enixH'ially in the largo crop of 11)15, from which the Allies got in that crop vear 40 j>er eer.t of all their wheat brought overseas, Ans and service pro- vided for our own men and hos- pitals. Later on it received eve» widening recognition because the de- votion and diligence of our women had furnished such an abuhdunoe of suppliiM that every needy Ally turned to us and none were turned away with empty hands. Canadian Red Cross boxes were supplied, not to L*. fliuiiiri* ill the ri'lutioh ..i' nwvi'rii- nn'iitu tlii-<. KiH>d hud Ih" cornc nn iiixlrutnciitulity to win t)u< wiir. Ill ItMH thtTi' WM* coiitMl l>y irov riitiU'iitK lilt to production, iiii- |x>rtiition uiid dintrihutioii. '"'itit wti'* ri-Kiirdi'd a.i iipcMniiry to «>iiitart> !»u|>- plit>K, to o<|uali/,i> distribution, and to oliniiiiuto it|MM'ulatiun. To oo-ordinate th»» op4>ratioiiM, an Inter-Allifd FimxI CouiK'il had b«*n oreatpd. Thot wn* comiw)!«>d of thi' Minister of Food for (iri'iit Hritiiin and the person* hold- ing H limilur otRoo for the United Htat^'ti. .'-anoe, and Italy. Its tank waa to .rranffe for the importation and ecinitahle distribution among the AlliiM nf the food aiippliea which were nbtiiitinhlc. Tlirouffh i-xiittinir ir other bodies crt'iitid for the purpose, it urraiiifcd tlic buyinir for tiio Allii's. Tilt' proRraiiinu' for breadstulTs was, ill till' first plai'o, ill tlie hands of the Wheat Kxei'utive, composed of rcpre- Hcnfatives of th > Allied nations. The actual purchasiiiK was done through the Uoyal Wheat Commission. Tlie correspoiidiiiK liusiness for meats and fats went throuuli the Meats and Fats F]xeeutive. The buying on the Ati-ri- can eoiitineiit was done tliiouf ' th'* Allied Provision Export Comm' !";>;, commonly spoken ti n A|m>c. ( lihr duties beloii^iiif; tf. is-> bodies, or n>soeiuted bodies, were the arraiiffinff of credits and deoidiiiK on questioiis of priority between nations and be- twL-en commodities in the use of ocean tonnaRe. It was, in fact, a vast and complex business onraiiiza- tion whereby the ffovernments took international control of food to win the war. The neutral nations were rationed as to quantities which they roiKht import. The necessity fp' that may be seen from a considera lon of the situation. But for the blockade niid the raiioninir of what niitrhi be imiMirfeij, any of the neiilruU eon- tiKuoiM to , eoubl have ex- ported home-trrowii ft>od*tutf>i for which they could obtain extreme prices, iiiiii then proceeibtl to fet«il their own nutionaU by im|Mirti'n mar- kets and generally , er prices. The United States and Canada had the largMt quantities of foodstuffs ne- cessible to the shipping which was available. IIi»wever, the signing of the armistice did not bring about p«'ace conditions for the movement of fo.id supplies, although it brought an end to the actual fighting in the ticM. There was continued control of fooil a- an iiistrunientality of war, to comiM'l otherwise ol'-tinate nations to benil to the will (it the Allies. After coiifereiices in Loiiilon and Paris, the IiitT-Al ."d Food Council was sue- 'cecj d by the .*^uprenie F.conomic 'ouiu-il. The Council constituted -set ii. IIS wliieh i.everally bad to do with shipping and transportation, finance, raw materials, food, etc., etc. .\Ir. irerl)ert Hoover was op- poiiitdl I)irector-(!eneral of Hclief for the Allies, niid in that capacity was Chairman of the Food S«'ction. I was appointj'd Canadian Director of Food Supplies. As 1 Iiave iilready said, there were general expectations of open mar- kets and lower prices, but there were obstacles to the realization of those things. There was no loii>rer any need' for reserve stocks for emergencies since the submarine campaign had been ended. The warehouses, par- ticularly in (ireat Britain, were foil. and it was physically impossible to take in additional supplies of perish- able commodities, such as bacon, frozen beef, etc. ; there was a modified continuation of the blockade; and in most of the countries there was no ready money to pay for supplies. On the part of the Government of the United Kingdom there was an evi- dent desire and intention to bring about de-control as soon as possible, but as soon as they took measures to that end they found it impracticable to proceed without grave risk to the regular arrival of supplies and with- out putting their fixed maximum re- tail prices in jeopardy. ninatratioBs from Bacon, Be«f and Wheat. A difficult situation was created for Canada, particularly in the case of bacon, frozen beef, and other perishable foods. There were about 25,000,000 pounds of bacon in Can- ada which had been provided and pre- pared for the Allied market. When the demand ceased, the packers in Canada rejirescnted that they would have to shut down on buying hogs unless they could send forward their products regularly. The farmers throughout Canada had hogs ready to market which tliey had grown and fed, in large measure, in response to the increased production campaigns which had been put on by the Do- minion Government in co-operation with the Provincial (loveriiments. The (luantity of bacon was not rela- tively large, but the situation was further complicated by the fact that during the war the Allied Provision Export Committee had been obtain- ing about 5.000 tons of bacon from the United States for every 1,000 tons procurable in Canada. Conse- quently, although there was no busi- ness agreement, it seemed equitable that if the British Ministry accepted the 10,000 tons from Canada they would be under an apparent moral obligation to take five times that quantity, or 50,000 tons, from the United States. For them to purchase that quantity under the circum- stances was out of the question. The American Food Administration did not press a claim for equality of treat- ment with Canada. That facilitated an agreement and arramgement where- by the Canadian bacon was disposed of satisfactorily. I mention this par- ticularly to illustrate the fact that Mr. Hoover, aa representative of the United States in food matters, in this, as in every other case, regarded Canada and her interests in the spirit of a friendly associate, with a lean- ing, if there ever was a leaning from strict equity, towards doing her a good turn whenever he could. In the case of frozen beef, the Ministry of Food in the TTnited King- dom represented that it w&a not only financially, but physically, impracti- cable for them to receive any addi- tional supplies from Canada. The Ministry had made considerable pur- chases in the Argentine at about llj cents per pound, and elsewhere at r '.dtively low prices, whereas the cost in Canada was about 25 cents per pound. During the war the scarcity of tonnage on the ocean made it im- practical to lift the Argentine sup- plies. That condition was expected to be changed after the armistice. The British Ministry, by agree- ing to o.ssist in providing some of the cold storage steamer space required, heli>ed t( bring about an agreement whereby a considerable (luantity was sold to Italy. Afterwards shipments by private firms to Belgium and else- where permitted all our stocks to be cleared at what were regarded as satisfactory prices. In the case of wheat, while the British Ministry dflsired to have a return to free commercial trading as soon as possible, the Roverning facfor in the situation was the maximum price for bread, which had been tixcd at 4J cents per pound retail. To per- mit that to be maintained, it was necessary that the British miller should obtain wheat at the eeen authorized to supi)]y milk at less than cost, the diffcrenw being payable ultimately through the rates. Adjustments between the cost to the British Government, under guar- anteed prices, and the amounts re- ceived under maximum retail prices are made by means of subsidies and to some extent by profits made on supplies purchased at relatively lower prices in the Argentine and elsewhere. The bread subsidy in Great Britain has amounted to about $250,000,000 per annum; in France to about $480,000,000 per annum, and in Italy to about $200,000,000. With even these large subsidies, owing to he dislocations and disturbances of the transition period from war to peace, many families would not have been able to obtain adequate nourish- mpnt; according to Mr. Hoover's estimate, as late aa July, 1919, about 15,000,000 families in European countries were receiving unemploy- ment or other similar allowances. The Purchase of Cheese. In this connection it may be ap- propriate for me to refer to a ques- tion which has been much discussed among dairymen since August. It has been called "the fixed price for cheese." What is really meant by those who peak with a knowledge of the facts, is the price offered by the British Ministry of Food at which it would buy a certain quantity of cheese. That Ministry has no power to establish " a fixed price " in Can- ada : and the Government of Canada, so far as I know (and as recently Rei)resentative of the Department of Aurieulture and Canadian Director of Food Supplies in Europe I would know), has not taken any action in any way to limit the price or control the movement of cheese. There was " a fixed price " in 1918 while the war was on; the average was 23-35 cents f.o.b. steamer at Montreal. But dur- ing the whole of the cheese season of 101!) there was ; .i open market in Canada. In the United Kingdom tliere was an open market for a brief period with limitations. The chief eoiitrolliiig limitations were the fixed maximum price retail (Is. fid. per pound), and the fact that the British Ministry of Food had purchased the New Zealand output to August, 1920, at 21 J cents. During the period, in 11 1919, when control of distribution in the United Kingdom was not applied to Canadian cheese, the Ministry dis- covered that there was an increasing inequality of distribution, and that larger quantities of cheese were likely to go into consumption before the winter began than was compatible with the policy of equalizing the supply throughout the year. As a means towards correcting, and then preventing, what was regarded as highly undesirable, the Ministry with- drew from British merchants the right of free and uncontrolled im- portation. That by itself would have shut out Canada for a time from the British market. To avoid doing that the British Ministry arranged to buy Canadian cheese of first quality at 25 cents per pound at Montreal. The Ministry, I think, agreed to pay the Montreal merchants a reasonable com- mission for their services in handling the cheese. The intention was to store the cheese in Canada until re- quired in the British markets under the policy of equalizing the distribu- tion. As to the price offered, the Ministry stated it could not afford to pay any more and hope to come out without loss. As a matter of fact, the strong probability, if not the cer- tainty, is that, owing in part to the fall in exchange, which was not unex- pected in August, the Ministry will lose from 2 to 4 cents per pound on all cheese it purchased in Canada last season. Bearing on the High Cost of Living. The»e matters have a direct bearing on the problem of the high cost of living. I wish that problem could have been more generally thought of as the problem of the reduced pur- chasing power of the dollar. That might have prevented at least a part of the general confusion in appreciat- ing and understanding the causes which make it so difficult, in many ca-ses, for income or earnings to pro- vide the necessaries and usual com- forts of life. People are impatient of explanation. They say an explanation gets them nowhere. What they want is an immediate remedy. Very likely there is no immediate remedy. The conse. with injurious re- sults from both. Many of those who rfceive frreatl.v inereiisi-d wajrc*. be- cause of the reduced value of inonev, are lead to spend freely and wa>ti- fully. That awravates the scarcity. On the other hand, some farmers who may lie eonsiderinK the investment or spending of money for wajres, etc., to increase production, are deterred from doinsr so by reason of the num- ber of dollars that would be involved in the operation. The Canadian prices of the staple farm products are determined by the impact of the world's wholesale de- mand and prices at the Canadian centres for the export trade. The points at which export prices are fixed, in the main, are,— the head of ^e lakes ports, for wheat; Montreal, Toronto, Winnipeg and Calgary, for bacon and beef; Montreal, for cheese and butter. The margins between the wholesale prices at those points and the prices at the farms work back, directly or indirectly, and are felt in the returns rweived by the farmers. In so far as any, reductions can be made in those margins, those reduc- tions are all to the advantage of the farmer and increase the price he re- ceives. In the main the prices at the farms bear ( uly a remote relation to the cost of production. The farmer does not know the actual cost of pro- duction of almost any separate com- modity which he may have for sale He keeps on working and produ.-ing from necessity and i„ hope. The general range of high price,- does stimulate the farmer to greater exer- tion but, unlike the manufacturer he does not immediately reduce his out-put if and when the price falla below the cost of production Likewise, what I have indicated as the wholesale prices, determined by the impact of the world's whnle=ale demands and prices at given centres 12 for export, may be taken as starting prices in the consideration of the retail prices to Canadian consumers. All margins for handling, between those starting prices and the prices at consumers' doors, are charged for- ward and an- felt in the retail prices. It does not seem probable that there <'nn he. in the near future, any large reductions in the margins which are charged back on the farmere for ser- vices rendered; and it does not seem likely that there will be appreciable reductions in the margins which are charged forward and included in the consumers' price*. Both margins must be J rge enough to provide ade- quate compensation for services ren- dered. I am not ignorant of the exist- ence of a general feeling of the pub- lic, and a vague determination by the public, that means shall be discovered and applied to the end that these margins shall not exceed fair and reasonable compensation for services rendered. No good can come from railing at " middlemen » and creating a sentiment that their businesses are conducted at the expense of, or to ttie injuiry of, either producei^s or consumers, :^^ost of the middlemen engaged in the businesses of trans- portation, preparation, and distribu- tion of food products, are engaged in an obviously necessary economi.. ser- vice. At the same time, it is evident that in Canada too many persons are occui.ied in the final stages of di.tri- biit.on. Part of that may be due to t-lie kind of service demanded i,v the Pul.lu-. Tliat becomes incrcasinglv extensive and expensive. An . xtr.me examjile: A mumII portion of meat is orderci by telephone and it is ex- pcted to be delivered within an hour by either a horse and wagon or a motor-truck. If we will have the fr. ^j "''"'■^ °^ expensive service that adds to the cost of living. Com- mercial and merchandising services have attracted many thousands too 18 mnny into their ranks, not bmniise of tho attract! vpnos.s or intrinsic merit of the servico which these per- sons are emailed upon to iMfforni, Imt because of the opportunities to ac- quire control of wealth throu>?h buy- ing and sellinjT commodities. In the main rlie remedy must be left to the free jihiy of eumpotition ; but that may be supplemented by such means as the supervised publicity of protits obtained from the handlinjr of all comnioilities of prime necessity and the imposition of sptx^itic iates of taxation u\>on all profits n-pirdwl as boinp more than proper compensation for service rendered. The publicity re(iuired in the several countries dur- inff the ix>riods of food control had n wholesome effect. The publication of comparative retail prices by local food committees did some p-ood. Some of the.se apencies mijrht be re- vived, improved, and continued with the probability of benefit all round. The hijrh cost of living is more than an economic or political plirast\ It is a f:rim reality which is beiiip felt acutely by millions of iwople. There is not yet enouprh food in the world to meet the demand, to meet the act\ial needs, much less to be safe iifrainst extended semi-famine conditions in case there should be a comparative failure of crops for one year. We have not pot any reserves in siprht. The nations of the world cantiot afford at this tape, after the sreat war strufrprle for justice and fair-pliiy, to leave humanity expdsed to the calamity of a poor crop all round with no reserves to fall back upon. In Canada, to keep ourselves safe and make ourselves strong in an economic sense, wo must produce and we must save. This course is the right and wise one for the nation. It is also the best one from tnery i oint of view for every province, every county, all communities, and every individual farmer. The Oppoitunity and Obligation of Canada. While increased production can no longer be urged as a nwessity of v.-ar, every man who has had an oppor- tunity of learning the faet.s and studyini; the situation is convinced tliMt iniTe;i>ed production is a neces- sity of peace. It is ni-edod in all the countries with whom we shared tlie losses of war before our united ef- forts won (•omi>lete victory. There i> no other way to reach real prosperity, to rt-move dangerous discontent, and to open the way for abiding economic and social justice to each and all. Statistically the ipnintity of bread- stuffs is enough to go around until the end of the present crop year {l!»l!)-20). The anxiety of Central Kurope is whether it will be made fiiuincially iiracticable for the food to reach the destitute. In some ten countries there are about twice as many peojije as the whole population of Canada who are utterly destitute —without money or the means of oar:iing it, wtihout food and with scant clothing. Of th(^e nations, Poland, Austria and Armenia appear to have reached the end of their re- sources to furnish negotiable securi- ties for credits, with whoeh to pur- ('hase the food the refugees and other destitutes need for bare sul)sistence. The amount re<|uired has been esti- mated at from $110,O()i),()()O to sfl.lO- WO.(XX) until the n- liarv.sts are available. It is undd . that (ireat Britain and the U:i States are tak-inu: the necessary steps to avert starvation on the appalling scale wliich is otherwise imminent. The nitwsure of assistance, which the (iovern.nents of these two countries has ;,nven, since the armistice, to mitigate distress and to help ex- husted nations to get on their feet, is not generally known in Canada! The continued collaboration of the United States and the British Em- pij» Is the bwt nssurnnoo the Wdrld hag for I'foni.mic nrovir.v atul n fitoml prosiKTity uiulir iKiin-fiil , on- ditioiis. B(vau.>H' rvf thnt it is wnrlh smtiiitf. and worth siatiii>r witii ,i|i- prifintivf cniphiisis, that f tlif t^*-t'lv.. months aftor the ariiiistir.. the I'nitid Stntf* (iovfriiiiKMif k^ivo financial nssist.Muv l,.v cn.lits to Kiin)iH.an (i()V(Tninf..ts ti. the extent of i4.-22C,,r,4H,(Ws. .M„v than half the amount was f(,r ajjricnltural pro- ducts. That rcv.iiis an iinnicnsi. ,-„n- tributio/i towards the aincli.iration of conditions in Kurope. Moreovtr, the Children's Welfare Scheme of the Amorican Relief Administration, under Mr. Hoover, provided the neewsary supplementary rations for uuder-fed children to the number of about 4.000,000 in 13 countries. About "^.SOO.OOO war-enfeebled chil- dren are still being nurtured into a tolerably wholesome condition for normal grov.-th. at a cost to the Tnited States of about $rn grains, 100 per cent; hogs and products, 142 per cent; cattle and beef rfrom 1913), 96 per cent; dairy products, 108 per cent. Under all the circumstances, in my opinion, the farmers of Canada, dur- 18 in(r the next two years, will luivo tlic best chniicc, duriiifr my lifr-tinn', to make roiisnnablp niid cvimi Ihtl-o profits. Somt'timosi iippoalu «rt> inndo ill the lumie of patriot ii-m and altru- ism. At the pri'sodt time tlic first appeal is one of self-iiiterMt. And wliilp money is beinjj made by tho in- dividual, benefit is beinK brouprlit to the community and the nation, nnd needed and valuable »-^rviee rendered to humanity. All three " pulls," self- interest, patriotism and humane ser- vice, are in one direction. Conse- quently the farmers of Canada will not make any mistake in producing as much as they can of all the staple food products. They are sure to be needed. The world's prices in the main will be determined by condi- tions and factors beyond our control. But our farmers may depend upon being able to obtain the highest prices which the world's markets will afford. Canadian farm products have a pre- ference in the markets of Great Britain because of their known superior quality, and in other Kuro- pean markets they are sure of at least an equality in price with the products imported from any other country. We can not expect more than that. Whether we produce more or less, that is the highest rate we can >:ct, and any extra quantity produoid in Canada, as the result of extra eff..rt, cannot of itself be an appreciable factor in reducing the world prices. The more we produce the more money our farmers will receive, the more quickly our nation will recover from the losses of war. and the more will we help to bring good cheer to a world • still reeling and scarcely yet con- scious of the extent of the appalling losses and wastes of four years of destruction. The Outlook. In Canada the agricultural and economic situation might have been very much worse. It could scarcely liavf liicn better, in riew of the ap- Iialiihg waste;! aiul losses cauM^I by the war. Wi- are in a deeidiHJly good positimi to go on. Since the war be- gan there has been much enlarge- ment of wiiat may be called tlie " iro- duci;i>: plant"' of Canadian farmers, ^'ix million acres of additional land have been brought under cultivation. There are about forty millioti acres ready for cultivated crops for the season of 1020. Statistics show that the live stock has been greatly in- creased. From 101.1 to 1918 the in- creases were: Cattle, 51 per cent; sheep, 42 per cent; swine, •2r> per cent. Not only has the "producing plant" . been eniarged, but through the war- time organization and efforts, farmers have acquired knowledge and ability to make better use of it. The rural population has been continuously be- coming more intelligent and capable. It has recently become better orga- nized for carrying on its affairs. There is mom and need for further organization and utilization of the local forces in every community. The value of the annual production of the farms of Canada may now be estimated at from l.-WO to 1,700 mil- lions of dollars. The estimate can not be made close, because the weather lias a great effect on the yield of crops. In EurojH-an countries the weat' er influence is felt more upon th -aviiig of the crops after they art irowii. While the outside markets are all-important to Cana- dian farmers, it must b«' remeniln red that about two-thirds (more or lcs«, depending upon the abundant or •leagre ((uality of the harvests) of the annual value of all the farm pro- ducts are consumed or retained in Canada. The export* during the year ending March :!!. litlO, were as follows:— Agricultural products. $l'(!s.^27,003 Animal produce l!»7.(!;52..".7l Total for year $4t!ii,1.59,f!:!4 i 1« Tlipoxporto diiriiiff fho .vi>nr i-tuliii^ "March .'tl. l!>J(i, w.t.' ii<. follinv.:— Ajfricultiiriil prndui'ts. . ijCKU.Itss.lX!; Aniimtl [troduce 27i',"1;1,m,s»( Total for ycur i|I'I.'{T,7.'{:.',m.'i.T Thiit shows nil iniTiM-i', fur tin- your, ill till' viiliii' of fximrts nf nyri- c'ultunil product- and niiiiiuil iiMduco p. of over ;!b;eafion and Agriculture. If any nation, even in time of prolonged financial stress, should reduce ita IT •upport of rducatioii »ni rentrint it* expenditurn on that norviw beonuu tiinpH are hard, it thereby doom* it- •elf to conipurative iirnuraiice and eonse.|uont povtrty. Weakinw* or apathy in the RUpport of education, from the elementary nchooU to the universities and tefhnical c-ollejres, is ^'ure to result in lower levels of in- tellifcence, lea* practical ability and narrower oo-o|>eratinK Rood-will. It has been said that one man in a8 gfKid as another. Be that as it may. the Ranic hoy, youth and man, when ••duented for an occupation and citi- jsenship, i» a much more capable and viiluable citizen than he could be without th* educational trainiuK. Our people, as a whole, need encour- agement and Rtimulation to sjH'nd peneroualy and courageously oi education. Agriculture is to be regarded ps a national interest as well as an occu- pation followed by individuals to earn their living. As a national in- terest very much more can be done and should be done for its further improvement. We will have to rely, in the main, on the improvement of agriculture and the further develop- ment of our other natural resources and industries to enable ns to maiu- t-ain stable conditions of prosperit.v, to pay our way as a nation, and to I>ay our public debt. Moreover, in the keener competitions we are sure to meet in the world's niurketji we can- not expect to hold our place unless our people are as well informed, as well trained and as *ell organized as others. I like to think of Canadians as I know them as being individually of good natural capacity. If the strength and power of a nation can be thought of as the sum total of the ability and character of the units of its population, then Canada would stand very high ; but the sum total of a nation's power and prosperity is not to be meaaui-ed by adding together the valuM of all th« units of the popula- tion as wpjrate*. It depends on whether the units are orgaoieed for effective accomplishment. On the pro- ductive side of its agriculture Ctanada IS as yef, very imjM'rfectly and in- '^'"ipl.tcly organizeil. This doe* not refer to the organization of the De- iwrtir- .,t« of Agriculture of the Oov- jrnnienfs, Dominion ..r Provincial, but to the In.-k of loci organiz.ition of fanners in municipalities, town- slnps and parish.-s. f„r the sperific l>uriH>se of improving ngriculture and increasing production. (Jreaf Britain has made provision for continuing the wiir-timo County Agricultural Com- nnttees. It seems to me there should be a XeighlKiurhood Improvement Asso- ciation, grouped around an illustni- lion farm, in every community of farmcr> in (Canada. That would be one means wluTeby the i.rople would organize themselves so that the iil)i!ity of the natural leaders of the locality would be brought into full use and full play for the benefit of the neighbours, the development of the leaders themselves, and the im- provement of the community. That is cited as an example of what more needs to be done in only one firfd of developmont. Such a scheme of or- '.'anization. when in full operation, might be exjw cted to increase the an- nual value of the out-put of the farms by from 20 per cent upwards. That estimate is not a mere conjectur.\ It is based on knowledge of what has already been accomplished in the neighbourhood of Illustration Farms under the Commission of Conserva- tion. At the current range of prices 20 per cent increase would represent between |300,00fl.000 and $350,000,- 000 annually, as the weather condi- tions were less or more faTourable. In the experimental farms, with their researeli departments, iilustra- tions, and educational publicity, and IS In tithiT ttraiH'httM of flu- nc|iartiiiciitit of Agriculture, with their iitliiiiiiisitru- livi' Bt-rvicc*. tlii-r.' ii riMirii niui luftl for (>xti>iii«ioii atid iiiiprovi iiiciit. 'T\u* oniinot b<> aci'oiii|)li.|n>«J without iii- cri'iiHt'd fXiKiitlituri'. I'trhii|w pv.-n iiioft' now than in th.' ihi.VM of Solo- mon. " Tliin- \* that •cntftrftL and yt- uiiTfUdfih 'Mid thin- in that witii- 1 iileth tnor«> than in niiH't, but it tindfth to iKivtrty." In education and aKricuIturc arc our n>.«t profit- abh- and biMicHcial lorint of national invc-tnicnt. Vicwwl I'rom every nide, there can be no i-conoiny iu faii- init to ttpend tho amount* ueccs- ••ary to preoiTve Rood health, to pro- vide public health mcaourex, to pre- »«it diKOBM, and to promote intelli- ?enop. practical ability, Rood charac- ter. hiRh ideals nnd RiHid citizcn«hip. These are the foundations of gocial jiifrity. Every citizen who is not disabled by diseo ■ or other infirmity may be exiH'cted nnd doubtless is willing to pay his share of the war dtfct. It is purs of the price of liberty nnd •»«>curity. By far the larger part, the immeasurable, irreplaceable, heart- rending part, Iws been already paid in life, health and service by the officer!* and men of the army and navy, and by the women who gave themselves devotedly to patriotic ser- vici\ TlicTo remains to us to pay the co9t in money. While it is a small part of the cost, it must be met nnd c met honestly and honourably o " V what I hove already repeated more than once, increased production from diligent and intelligent labour and economical living with the least possible waste. It has been estimated that the war expenditures to March 31, 1920, will amount to about $1,900,- OOO.OOC. We have already paid part of that tlirough ta.xacioii; and ihe net increHw of the tintional dvttt due to the war, to Mur<-h 31, 19M, ii wti- Ukuted at alwut $l,graphs. telephones; Real Estate and buildin;?^ in cities and towns; clothing, furni- ture and personal effects; coin ai-d bullion held by Receiver-Oenerul, «p«-cie in banks, value of token cur- rency; im|K>rted merchandise in store; Current Production— agricul- ture, fishing, forestry, mining, manu- facturing. To make it easier to understand the national situation, I would point out that our estate was not " free " before the war. It had eticumbrances. A recent estimate of Canada's funded debt outstanding in Great Britain puts it 547,980,000 jwunus sterling. That includes the funded indebted- ness of Dominion and Provincial Governments, munici alities, rail- ways, industrial concerns and gun- dries. I have no knowledge of a de- tailed estimate of outstanding in- debtedness to the United States. It haw been mentioned us " at U ast sev- eral hundred million dollars." For the purpose of this illustration, the two together may be takeji as about $3,000,000,000. These figures ore t.) be token only as a rough approxi- mate. Now, take an illustration from an estate which Ow thinking can understand, as for example that of a large farmer whose total estate, in- cluding buildings, machinery, live I» •took, furniture, olothinK mid evory kind of matorial (HiutpmiMit, ba« it value of »17.()00. To make tho paral- 1«1 clear, between that i»inall e*tati' and our national affairs, one ha« to •uppo«v that iiuoh a farmt-r owtnJ $3,000 to creditor* outwidt' hi« family. That would leave the . value of hi« estate at $14,000. If you multiply that by a million, the tliruriii will apply to C'aiiiitla aa a nation. Atiain^f that not of 11 4.000,000,000 for Cun- •du, tlu-re are now to be reuintered two additional itumi* — one of about $1.«WO,()00.000 an the net inerease in the iiationiil debt due to the war. and one of *;i4.'i,000.000 to represent the |)enRiouH capitalize! at 5 per l -nt. Together they repreaeiit a new mortKaffe of wbont 14 per cent o.i the net value of the estate of ('anadii. Intercut will have to be paid an- nually, the pension * will have to be paid, as they will be paid with all good will and gratitude, and a sink- ing fund should be provided. These together call for an increase in the annual expenditure of the Dominion (Jov.riiinwt. due to the war. aa fol- lows: — Inereuten dolit I !M),Ot»0.0«W) Hinkiiig fund, ^ay .... ttt.0uee, and that ikw and promising opiH)rtunities are before us through whieb we may enter u|»on a new era. in whif' economic and !»ocial j'i