In spite of the encouraging predictions made a couple of months ago, the overwhelming surplus on the wheat market is becoming increasingly and painfully felt among our farmers. It was said hopefully at that time that the Argentine wheat harvest would fail, that Russian exports would be negligible, that our own reserves were low, and so on. But it so happens that the Harvest in the Argentine is of medium volume; Russia is doing her utmost to increase her wheat export; Canada and Australia have immense stocks on hand, and European countries are trying to reduce their wheat imports from the United States. The result is that our supply is much greater than the demand.

A few weeks ago, the wheat price was under one dollar in Kansas City and in Duluth, and in the Chicago wheat pit the price of March wheat was even lower. During the last few days there has been some improvement, thanks to stabilizing measures taken by the farm commission and to large purchases made by brokers.

The latter probably act on the assumption that the Government is determined to support the wheat market regardless of outside influences.

It is gratifying to know that farmers who are members of co-operative organizations associated with the Farmers' National Grain Corporation are protected against losses. According to an announcement by Alexander Legge, chairman of the Federal Farm Commission, they may market their wheat through their co-operatives at a price equivalent to 1.18 in Chicago. These farmers are now benefiting from the stabilizing measures taken by their own organization, measures which have been made possible by Government funds.

Behind the National Grain Corporation and its stabilizing organization stands the Federal Farm Commission, which formally recognized the latter by granting it a loan of ten million dollars. This probably means that the Commission, which has at its disposal a fund of five hundred million dollars, is prepared to stabilize the wheat price at a minimum of $1.18, delivered in Chicago, for members of farmers' co-operative organizations. Legge has, in fact, declared that this price will be maintained.

Just how much this experiment is going to cost the Government is another question. Some, who claim to be experts, say that it will cost plenty, more than is good for anybody. They point to Australia, Argentina, India, and Russia, all of which countries sell their wheat on the world market at a price which is determined by supply and demand, and they declare that artificial stabilization of prices will cost the Government enormous sums of money.

The American farmer may expect to obtain reasonable prices for his products if he will co-operate with the Farm Commission and follow the suggestions of the Department of Agriculture. It is imperative that he adjust his production to existing conditions by alternating his crops and reducing the acreage for those products of which there already is a large surplus. The salvation of our agriculture lies in co-operation, and farmers should conduct as much of their business as possible along co-operative lines.