Evening Star Newspaper, September 5, 1930, Page 12

A—12 | LEGGE WOULD NOT -+ GHANGE FARM ACT Radio Forum Speaker Is Against “Tinkering” With Present Marketing Law. (Continued From Eleventh Page.) §ncreased with the world carry-over mounting steadily each year up to 1929. In the past 15 years Canada, Argentine and Australia, the principal competi- tors of the United States in the world market, have increaged their combined wheat acreage by 28,000,000 acres, or twice that reported for this country. In addition to that, many of the im- porting countries have taken measures to stimulate production of wheat at home, the purpose being to get as nearly as possible on & ae]!-ausulnins basis. One thing to be borne in min is that wheat can be produced in nearly every climate and that there are thou- sands of places in the world where there is almost unlimited cheap land evailable for that purpose. “The principal competitors in the| ‘world market have one or more of sev- | eral advantages over the American grower‘ including cheap land, cheap la- or, cheap taxes and.cheap transpor- gation. “In the matter of transportation, ‘wheat grown in this country has a nat- ural handicap compared to many other producing centers when figured on an | export basis, since the large percentage | of the flelds is fully 2,000 miles from | the seaboard. In Argentine, for in- stance, the wheat flelds are divided by & navigable stream running through the ntire belt, where ocean-going vessels ad the wheat within comparatively short distances from where it is grown, much of it being produced within truck- ing distance of the dock. Russia Is New Menace. “As a further menace to the wheat exporter of this country we must face the probability of Russia soon coming back iuto the world market. They are strongly contending at present that they will have a substantial quantity to ex- port this' season. We doubt this, but| are convinced that it is only a question ?f time until they will be an important lactor. Russia has a larger amount of available wheat land than any other lcountry, and it is well to keep in mind that before the war Russia was the Jargest exporting nation in the world. {Their wheat is produced under condi- tions which the American farmer can- ot _possibly meet. “In our opinion, the facts just recited pretty clearly demonstrate that the world market does not offer the Ameri- can grower a profitable price. Now, the question that arises is whether our grow- ers can still produce a surplus and dis- pose of it abroad without affecting the price level in the domestic market. Again our answer is no. “Several schemes have been advanced Jor disposing of tariff appiy on the wheat consumed at ‘home. All of these provide for subsidiz- ing the exportation of surplus, either at the expense of the grower or indirectly or directly from the Federal Ty, “Two of these, the equalization fee @nd the debenture, are being pushed rather vigorously in some quarters. ‘Their adoption would not get the de- sired results. “As we see it, there are two reasons ‘Why neither plan could succeed, both of reasons are outside the control 'ms the same as we have a problem. Depressed Prices Foreseen. “In the second place, the dumping of large quantities of wheat on foiign markets such as would result from op- eration of either the equalization fee or debenture plan would tend to depress the world price. The economists tell us that the amount of this depression very likely would equal or exceed the subsidy and thereby defeat the whole purpose of that uuhslg‘ It will do no good to make the tariff effective on a commod- ity if at the same time you depress the world price by the amount of the tariff. The way to help the grower is for the tariff to be made effective on his com- modity without interfering with the world price level. “Stabilization efforts, in our opinion, can cope successfully with seasonal surpluses such as might be . produced by an especlally heavy crop yield in any one year. If our production were well balanced—that is to say, a quanti- ty that was in line with the market demand—it would - be reasonable to state that the years of underproduc- tion would offset the years of overpro- duction, but it is quite impossible to make this apply to a cumulative, con- stantly increasing surplus such as we have had since 1925. “Among the duties imposed upon the Farm Board by the agricultural mar- keting act are these: “‘To keep advised from any avail- able sources and make reports as to crop prices, experiences, prospects, sup- ly and demand, at home and abroad. 'To investigate conditions of over- production of agricultural commodities and advise as to the prevention of such overproduction.’ “You will thus readily see that it is our duty to give to the American farm- er the information you have just heard. In addition we think it far better to tell the grower these facts as they are rather than to let him go blindly still deeper into what appears to be an im- possible situation, namely, to compete in the market of the world with Amer- ican-grown wheat and still expect to get & price comparable with the gen- eral-price level and standard of living in this country. “It is our considered judgment that there is just one way that the Ameri- can farmer can hope to get a profit- able price for his wheat, and that is for production in this country to be adjusted downward so that it will not exceed domestic requirements. That is necessary if tariff protection is to be effective. Once this is done, in- creased production elsewhere in the world will make no difference to our producers, for Congress can be relied upon to afford them whatever protec- tion may be required for them to main- tain their place with other groups in this country. Accordingly we are rec- ommending to farmers a gradual slow- ing down of production with the object of eventually balancing our production with domestic consumption. Remedy Is Suggested. “We have given the facts to the growers in r to wheat -crege adjustment and mfi‘md the remedy. What is accomplished depends pretty largely upon their willingness to act when it is demonstrated to them that they will get more for producing less, While some grmeu is being made in curtailing wheat production we feel that growers will not get the full bene- fits of such action until they are or- ganized. In position to act collectivel NACHMAN THE EVENING of any commod- interests of the of market re- growers increasing the yield bushels and receiving the crop $242,000,000 less than for the smaller yield of the year previous. The comparatively small corn crop of 1924 brought the farmers $300,000,000smore than they got for the 600,000,000 bushels’ larger crop the following year. In 1923 cotton growers of the South got nearly $600,000,000 more than they re- ceived three years later for nearly dou- bie the production. “In the suggestion that more atten- tion be paid to a situation that is gen- erally reflected in heavy inventories or carry-overs for previous years, we are only proposing the application to agri- culture of the fundamental principles that must be used by any industrial or- ganization to prosper. The fact that the larger industries have learped to watch this closely has perhaps had more to do with their better financial return than any other feature of their business. “The agricultural marketing act, which the Farm Board is administer- ing, is the result of nearly 10 years of discussion and consideration in Con- gress and out. It récognizes that there is a farm problem and as a solutign commits this country definitely to the principles of co-o} tion. The avowed purpose is to place the industry of agriculture on a basis of economic equality with other industries. It pro- | vides Government assistance that will enable farmers acting collectively to control the production and marketing of their crops. Organization is the keynote. Assistance is not to be ex- tended directly to individual farmers, but to them through their co-operative organizations. Prepared to Aid in Work. “We are prepared to assist farmers in organizing along sound lines the co- operative assoclations necessary to se- cure for them the best results that mar- ket conditions will justify. When so organized we can assist them in financ- ing such organizations. In collabora- tion with the Department of Agricul- ture we can supply the best informa- tion available as to market outlook and pruv?ecu and assist co-operatives in providing proper facilities for the ware- housing and handling of any agricul- tural commodity. You will notice that in all these operations I say we can assist. The start must be made by the farmers themselves. We haven't any power to compel them to do any- thing. We don't want any such au- ;.lh\;rlltcy and we wouldn’t use it if we ad if. “‘Organized to & degree where farm- ers can exert the same judgment in adjusting production to the consuming demand, both as to quality and quan- tity, and so regulate the flow of their produce that the action of one may not be destroying the market for others, it seems to me that agriculture's possi- bilities in creating a stable condition are better than those of any other class of manufacturers for the simple reason that in times of husiness depression, such as we are now experiencing, con- sumers can economize to a greater ex- tent on everything else than they can on food. When times are hard you continue to run the old car instead of buying a new one; wear your clothes a little longer; you pone contemplated improvements, all of which has the result of lowering the volume of some- 'S iness. case of the industry that produces the food to sustain life, fluctuation cannot be so great. Their customers are tegular buyers, eating three times a day and must continue buyi even when it is harder for them to dig up the cost of doing so, which leads to the conclusion that when organized, the Nachman’s September TRADE-IN Sale $30.00 Allowance for Your Old Suite 10-Piece Dining Room Suite Comprises oblong Extension Table, Buffet, China Cabinet, Armchair and five Side Chairs, $128, less $30 for your old suite seveee.....r.on... Mahogany Finish Davenport Table 5.Pc. Oak Break- Regularly ‘08 Phone Stand and Chair. 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C, OPPOSES MARKETING ACT “TINKERING” ALEXANDER LEGGE, Chairman Federal Farm Board. —Harris-Ewing Photo. farmer’s business should be and can be | the most stable of any industry in the world. “The value of organization to meet emergencies is forcibly demonstrated by the drought in some sections of the country. Where they are organ- ized co-operatively, farmers are in po- sition to get assistance immediately either through their national set-up, as is the case with the live stock men, or direct from the Farm Board where they huve not yet established a central mar- keting agency for their commodity. To obtain aid in such times requires col- lective responsibility and the farmers who belong to & co-operative are in position to give that without delay. Efforts Centered on Agencies. “The Farm Board began its work a little more than one year ago. Recog- nizing the importance of organization, we have centered our efforts on assist- ing various existing co-operative groups to organize national or central com- modity sales agencies for the unified marketing of the different products of the farm, such as grain, cotton, wool and live stock. These agencies, which are made up of State, regional and local associations, are being formed by the co-operatives to merchandise the products handled by their member as- sociations to the best advantage of the grower and is not to set aside the law of supply and demand and artificially raise prices to the consumer. “Thus far the co-operatives have set up seven national commodity market- ing agencies, as follows: Farmers' Na- tional Grain Corporation, National Wool Marketing Corporation, American Cot- ton Co-operative Association, National Live Stock Marketing Association, Na- tional Bean Marketing Association, Na- tional Pecan Marketing Association, and National Sugar Beet Growers’' As- sociation. “It is hoped that agricultural pro- ducers, through these agencies, and others that are expected to be de- 7T FRIDAY, SEPTEMBER 1930. veloped later, will gain control of sum- clent volume of the various commodi- ties to have bargaining power in mar- keting them. “One point I wish to emphasize to this audience is that these organiza- tions are farmer-owned and controlled and that their services are available to any farmer who is willing to co-operate with his neighbors. “The board is working with other co-operative groups, including those handling dairy products, tobacco, apples, rice, and fruits and vegetables, loaking to the development of central co-opera- tive sales agencies for those commodi- ties. Co-operatives handling apples, beans, citrus fruits, cotton, dairy prod- ucts, dried fruits, figs, grain, grass seed, honey, live stock, pecans, poultry and eges, grapes and raisins, rice, sour cher- ries, tobacco, wheat, and wool and mo- hair have received financial assistance trom the board. “Some critics have sought to make it appear that the co-operative pro- gram being developed under the agri- cultural marketing act is contrary to American principles. After listening to the story of the Farm Board’s work I feel confident that you will agree with me that we are trying to help agri- culture in a sound, practical way to take its rightful place alongside other industries. ~ There is nothing of Gov- ernment in business or price fixing in the program, but there is opportunity for farmers if they are willing to co- operate and pull together to get or- ganized so that collectively they can protect themselves in a system where ne;’x.-ly everybody else is highly organ- iz Progress Being Made. “We of the Farm Board realize there are many difficulties in the way of effective co-operation, but believe the time is at hand when the good sense of the average farmer will make him realize that his best interest lies in working with, not against, his neighbor. “Substantial progress is being made with the co-operativ> program, and much more can be expected in the ‘uture. Experience to date only tends to con- firm our belief that the principles of the law are sound, and their application will lead to the permanent betterment of agriculture. We do not contend the law is perfect, but we are of the opinion that more experience is needed before any serious thought is given to amend- | ments, several of which have been sug- | gested. Tinkering with the law at this time would probably check the progress that is being made and benefit the opposition to co-operative action instead of the farmer, the individual we are trying to help. “Neither the agricultural marketing act nor any other law will of itself make agriculture prosperous. Farmers must operate their industry on a sound financial basis to get that result. Or- ganization is the first step necessary. The responsibility for that rests largely on the producers. We can and will help in every way , but what we do will be ‘of liitle permanent value unless the farmers themselves want to be helped. They must be ready to assume their full share of responsibility for co- operative organization and manage- ment, and be willing, once they are so organized, to act collectively in both the | production and marketing of their crops. “In conclusion, I wish to say th.t| many suggestions have been made to the Farm Board as to means of dealing with the nresent wheat surplus. Th most practical of these, in our judg-| ment, is that of using wheat and other small grains as a supplemental feeding ration to corn, which, according to many tests made 'y the various agri- cultural colleges and also by the Depart- ment of Agriculture, is a practical thing to do. Today the prices of all the small grains are on a substantially lower basis than the price of corn, yet these tests all indicate that a substantial percent- | age of the feeding ration of live stock, whether for fattening purposes or dairy herds, can be made up of wheat and other cereals. Marked Economy Is Seen. “Most of the colleges figure that wheat can be profitably included up to 25 per cent in the feeding ration when wheat and corn are selling at the same market price. Today all of the small grains are seiling at substantially lower prices than corn. Therefore, there would be a marked economy in using| as large a percentage of the smaller | grains in the feeding ration as prac-| ticable. In the past we have had only | a few periods in which there was a| serious shortage of corn available for | feeding purposes. | “If the market experience of those| periods may be taken as a guide for what is likely to happen this Winter, 1| will say that they indicate that eventu-| ally the price o wheat and corn reach practically the same level and appear to continue on that basis until the demand | {for wheat for human consumption | | causes the price of that cereal to rise| | above the level of other grains. On| this basis the purchase of grains other | than corn to 1 ix with the feeding ra- | | tion at tI' present level of prices seems | | very attractive to the feeders, but to | get the best results he should start this | mixed ration as early in the feeding| [SAVE EXPENSIVE | CLEANSING BILLS Annette's Perfect Cleanser swiftl; |l ‘ removes perspiration, grease, ail food, fruit and beverage stains. It's| | & Powder—not a liquid. Leaves no || odor, does not affect color—Cannot ||| Leave & Ring. | At Dep't and Drug Stores, 50c. Pree | mple. Write Annette's, Boston, Mass. dvertisement. words, will be by mixing a portion of small grains rather than by feeding one ration part of the season and then changing to some other feed. Unless substitution :ia nmlde. th;r? :'d ahead of “’m. uflo:: eficiency of feed necessary to produ tbe normal supply of meat, dairy prod- ucts and poultry. “T would therefore urge the early substitution of a mixed ration by the live stock feeders—first, for the reason that, in our judgment, they will S better results, and for the further r%- son that by doing this the food sudply of next year may be proevided on = fairly normal basis. “Thank you." All caddies employed on the m golf links in Richmond Park, Si England, are ex-service men, We would be without a lot of things, were it mot for Salesmen. They make us realize our wants. best _salesme Laundry are it tomers. 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