Evening Star Newspaper, March 15, 1931, Page 39

U. S. MUST PUT FARMER ON FEET, WARNS STONE ‘Federal Official Tells Radio Forum Audience That Prosperity Depends on Growers. ‘The radio address of Chairman James C. Stone of the Federal Farm Board, broadcast last night in National Radio | Forum, follows: As the new chairman of the Federal Farm Board I appreciate very much the opportunity afforded me tonight to tell this nation-wide radio audience of | what our board is doing to help the farmer improve his financial position ‘The problem we are working cn is commonly referred to as the “farm roblem,” but the fact is it is much roader than that. It is a national roblem and should be treated as such. t involves directly nearly a third of our population and indirectly prac- tically all of the other two-thirds. In & complex and interdependent system such as we haye today, no important group or industry can suffer economic d vantage indefinitely without the t.rwble spreading to the nation as a | w}th agriculture, representing as l'l doeg some 30,000,000 people, unabie to | buy’ the products of other industries scarcely beyond the mere necessities, | the time has come when the rest of the country cannot hope for prosperity unttl the farmer gets on his feet finan- cially. The quicker this is realized by lll of us, the better. Iam emphasizing int especially for the benefit of m city listeners. Refers to Legge. Before entering upon a distussion of the work of the board, I wish to refer briefly to the resignation, a week ago, of our first chairman, Alex Legge, which gave rise in the public mind to these two questions: Wil the general policies of the board be_continued? ‘Why did Mr. Legge resign? ‘The answer to the first question is that the general policies have been formulated by the board as a whole. Plans heretofore adopted will be carried out without change. This applies par- ticularly to the present operation of the Grain Stabilization Corporation and the Ootton Stabilization Corporation. Our client is the farmer and we are administering the Agricultural Market- ing Act so as to give him the greatest le benefits. The board will con- to do so. Mr. Legge gave the answer to the second quest; when he said, in a public statement, that he had been «working overtime for nearly eight months and could not stay longer at the sacrifice of his own personal affairs. ‘There are those who from selfish inter- est have sought to put a different in- terpretation on his resignation. Now, let’s hear from Mr. Legge on what he thinks about the efforts of the Parm T quote from his state- “The program,” he says, “has pro- gressed to a point where the organiza- tlon may be safely classified as a going concern. I sincerely believe the plan of operation to be sound and that the test of time will prove this to the satis- faction of all interested. While results may seem slow, it is not reasorable to expect that the congdition which has been developing over :enentlom could be corrected in any brief period of time, particularly when you take into account the fact that the industry affected rep- resents some six and one-half million individual producing units. Rersonally, I have a greater confidence in the ulti- mate success of the program laid down by Congress in the Agricultural Market- ing Act than when I undertook the work some twenty months ago, and will rate in every way I may as & private citizen to bring this about.” Accepts Legge Offer. ‘The board welcomes and is going to accept Mr. Legge's offer to help as a lvate citizen. We all regret that he no longer on the board. No one could work with him for twenty months without recognizing his high order of intelligence, his fairness, his sterling qualities as a business man and his broad knowledge and sympathetic in- terest in agriculture. ‘The Agricultural Marketing Act was the mflt of nearly ten years of discussion in Congress and out of varicus plans to deal with the agricultural problem. In this legislation Congress discarded all that promised to solve the lem without any aetion on the part of the producer. The plan enacted into law provides Government assistance that will enable farmers, acting collecuvely, to eontrol their own industry. {nu says to the American farmer mnz he Federal Government stands ready to help him set up co-operative market- in; organizations to merchandise his in his interest; to assist him in the l operations of these agencies; to furnish him the best available informa- tion on supply and demand conditions for agricultural products at home and abroad, together with recommendations for such adjustments of his operations as seem likely to give him the best re- turn for his effort; to extend financial aid to him in dealing with emergencies sueh as seasonal crop surpluses; and to investigate and report on questions of | vital interest to agriculture, such as land utilization. The law thus calls acton by producers in solving their economic_problems, a program we be- lieve to be sound and worka Government 1s_definitely committed to the support of agriculiural co-opera- tlon. C:ngress determined the program and the Farm Board's job s to help farmers make it effective for thelr industry. Two Phases to Work. There are two phases to the worl of the Farm Board which might be broadly described @s the long-time pro- gram and temporary measures to deal with emergencies. The former is by far the more important since it seeks, through organized effort on the part of the producers, to get agriculture on |2 permanently sound financial basis In the latter class are the wheat and cotton_ stabilization operations growing out of the present business depression. Perhaps due to the fact more publicity | stabilization | has been given to the activities than to the major efforts of the board in helping to develop an or- ganized agriculture, there has been a tendency on the part of the public, particularly business men, to judge our work on the temporary measures rather than the activitles designed to correct the basic ills of the ‘farming industry. Such stabilization operations are con- templated in,the act and their undoubtedly Has resulted in minimizing the fil effects of the world-wide eco- nomic stagnation on the price of cur agricultural commodities. They h served as a steadying influence for country as a whole and are carrying a part of the surplus burden in the period required by our wheat and cotton farm- ers to make the necessary adjustments in productions. Any loss which may be sustained in these operations are being compensated for many times over in the benefits, not only to our agricultural producers but to the public generally. The long-time program seeks through organized action of producers to bring about these two results: first, the de- velopment of & marketing system. that will_return to ths farmer the full market value of his product, based on supply and demand conditions; second, an adjustment of production, both quantity and quality, to the potential consumer demand. Co-operative Marketing. To accomplish the first, the Farm Board is helping farmers to develop a national co-operative marketing pro- gram. It aids them in forming local co-cperative associations where there are none; in expanding those already set up and in unifying the sales activi- ties of co-operatives handling the same commodity, Whether the central sales agency is national, regional or local de- pends ypon the marketing irements of the particular commodity. With such an agency the producer gains bargaining power through control of volume and the agency is in position engage in sound merchandising pol- Ichl that should get for its members the full market value of their products to the ccnsumer. Thus far co-opera- tives with Farm Board assistance have &et up seven national co-operative sales agencles, including grain, cotton, wool and mohair, livestock, beans, pecans and sugar beets, Similar sales agencies for other commodities probably will be established later by co-operatives han- dling them, In some commodities efforts have been ‘centered on developing regional sales ageneles. This is particularly true of dairy products. Only this week the Farm Board recognized the sixth re- gional association for this commcdity, an organization representing 100,000 producers in 16 states. Before the board approves a central sales agency for a commodity, whether national, regional or local, it makes sure that the set-up is a sound one from a business standpoint and that the management is competent.. So long as these agencies borrow Gevernment money, the requirement is made that thelr policies and management shall be satisfactory to the board. Their services are open to all farmers on an equitable basis. Once a central agency is recog- nized, the board deals with co-opera- tives handling that eommodity only through the central. Agency Always Interested. ‘With such central sales organizations the producer has in the market an agency that is interested at all times in seeing that the price paid for his prod- uct fully reflects what it is worth to the consumer. Under the old system, with farmers selling their crops individuaily, there is no regulation of the flow to market to prevent gluts and consequent price declines; grading as to quality is left to someone else with the resulting profit going to him instead of the pro- ducer; speculative trading is encour- aged and biggest profits are made by RESORTS. A «« AND BANFF ENROUTE LASKA IT’S aplace of mysterious loveliness and breath- catching contrasts. You fo rget about city life complexities in this prlmluve land of adven- ture and June summer-time. Here is the real tempo of frontier life. Rainbow hills. Glaciers. Snow eaks contrasting with valleys of lush green velvet—dappled with Shirley Canadlaso couver—up the with giant ‘White Pass pies. Villages on stilts. Go on a acific Princess Liner from Van- “inside ines. From rail by rail, for Lake Atlin— assage”, lined gkugwuy. cross or down the Yukon River to Dawson City. CANADIAN PACIFIC 15 B SRS O Ask General Agent, Passenger Dept, T Ave. NW. Washingion, D. Natl. for ‘Alaske Tour A-4 c !largely by the volume handled and not use | HE SUNDAY STAR, WASHINGTON, D. C, MARCH | 15; Forum Speaker 1 for organized | JAMES C. STONE. the trade when the market is active regardless of the price to the consumer; duplication of service and, excessive handling are not checked effectively and, very important, profits from mer- | chandistng _ service ~are determined by the price the producer receives. Adjustment of production to probable marketing requirements is regarded by the Farm Beard as fundamental. The declared purpose of the agricultural marketing act is to place agriculture on a basis of economic equality with other industries. This can be accom- plished only if agriculture follows the most_basic principle of other industries, which is to regulate production to the quantity and quality that can be ma keted =t €atisfactory prices. No matter how good the marketing system, it is ineffective when there is a surplus far in excess of the consumer demand. One of the duties imposed upon the Farm Board by Congress is to study the over- production of agricultural commodities and advise growers as to the “preven- tion of such overproduction,” the theory being that it is better not to produce a surplus than to produce one and then try to control it. Gradual Reduction. Acting on the best available infor- mation as to the world wheat outlaok, the board has recommended that pro- duction be reduced gradually over a period of years to the quantity that can be consumed in the domestic market. This was done because we belleve from the facts before us that the world mar- ket level in the next few years will be unsatisfactory to the American grower. Some of the other exporting countries, including Russia, are increasing their production, notwithstanding the" fact that there already is a burdensome world surplus. So long as the Ameri- can grower produces substantially more than can be sold at home, he will have to be content with the world price for his entire crop. As a permanent propo- sition there is no effective way for him to dispose of the surplus abroad with- out that action affecting the domestic price level. Despite the fact that most of the importing countries of Europe the past year have indicated unmistakably that they will not tolerate the extensive dumping of agricultural products on their markets, there are those in this country who continue to agitate the adoption of a plan to subsidize the ex- portation of our crop surpluses. The theory is that by such action the tar- iff can be made effective in the domes- tic market to about the extent of the export subsidy. But, like the United States, these nations have farm prob- lems of their own and can be counted upon to protect their growers, just as this country protects its growers against dumping from abroad. Even though dumping were permitied, the stimu- lated rush of exports from this coun- try would have a depressing effect on the world priee level, probably as much as the amount of the subsidy, thereby defeating its very purpose. Russia Dumps Wheat. What can happen when a compara- tively small quantitf of wheat is dumped on an unwilling market was amply demonstrated in Europe last Fall. Russian activities along that line were largely responsible for demoralizing the world market and necessitating a re- newal of the wheat stabilization oper- ations the middle of last November to prevent further effects of that collapse from being felt in our own market. I would like to suggest to our wheat growers and, other agricultural produc- ers that the Hesired result cannot be ob- tained at the expense of agricultural producers in other countries, which is contemplated in the various pre to subsidize the exportation of our crop surpluses, but requires action on | the part of our growers, They must| make whatever adjustments in produc- tion that are necessary and this can if they are properly organized. In the development of the Natiol SORT! A'l'l.A!\TlC u’n( N. CELEBRATE THE BIRTH OF SPRING RING . with its balmy breezes and warm sunshine can be -moyad to the utmost at Y Atlantic City's newest, ! centrally located, fi proof hotel. Luxurious accommoda- fions: unsurpassed cui- ine: fresh and salt water ‘a baths; v a glass solarium; ocean view sun-deck. 55 PER Room vwh Bath Including 4 All Meals 3 Fm',,”{ e.ugo Attached OTEL * B. LUDY, M.D. t WEST VIRGINIA. and Cottages ‘i- Ry.—lust an ernight. ‘| amount of $136,269,887.79 have been be accomplished on an equitable basis| —————— wide cn-oparluve movement the Farm since it was established an July 1! 10!0. has extended finangial assist- 101 associations, many of whlch lre national or regional mar- keting organizations with their mem- berships composed of hundreds of local co-operative units, Products handled by these associations include alfalfa seed, beans, canned goods, citrus fruits, cotton, dairy products, dried fruits, figs, coarse grains and wheat, honey, live stock, poultry and eggs, grapes and raisins, grass seed, pecans, potatoes, processed deciduous fruits, rice, sour cherries, tobacco and wool and mohair. 100 Located in U. S. Of the 101 associations to which loan commitments have been made up to March 2, 1931, 100 are located in the continental United States and 1 ind Porto Ri. Commitments totaling $22,011,3122.44 have been made to seven associatioris in the Northeastern States (Maine, New _Hampshire, Vermont, Massachuretts, Rhode Island, Connec- ticut, New York, New Jersey and Penn- sylvania), Commitments have been made to 14 associations in the East North - Central States (Ohio, Indiana, Tllinois, Michigan and Wisconsin), amounting to $50,871,541.38. Loan com- mitments of $18,084952.34 have been made to 12 associations in the West North-Central States (Minnesota, Towa, Missouri, North Dakota, South Dakota, Nebraska and Kansas). Loans in the made avallable to 36 associations in the Southern States, including the South Atlantic and the East and West South-Central States (Delaware, Mary- land, Virginia, West Virginia, North Carolina, South - Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas, Louisiana, Okla- homa and Texas). Loans also have been made available to 31 associations in the Western States (Montana, Idaho, Wyoming, Colorado, New Mexico, Ari- zona, Utah, Nevada, Washington, Ore- g(‘m‘;nd California), totaling $25,882,- 1.45. The benefits of many of these loans accrue to organized farmers in other areas. For example, loans made to the National Live Stock Marketing As- sociation and the Farmers' National Grain Corporction, with headquarters at Chicago, are used to assist co-opera- tive associations and ti members in practically all States where live st and grain are produced. Similar) loans to the American Cotton Co-ope ative Associat‘on, New Orleans, La., and the Natiosal Wool Marketing Cor- poration, Boston, Mass., are made avail- able to co-operatives handling these commodities and aid the producers in every State in the cotton, wool and mohair producing areas. Advice by Board. In_addition to financial assistance, the board has rendered an extensive investigational and advisory service to co-operative associations. Members of its staff have assisted in developing or- ganization plans. They have studied marketing and financial _problems which the associations themselves, be- cause of the broad application of these questions, were not in a position to study. They have, in numerous in- stances, given direct assistance in work- ing out problems of membership rela- tions, or organization, or of operation. I will cite two examples of how this kind of work is carried on by the ard. In Virginia agricultural teachers and county agents were assisted in develop- ing an educational program with to- bacco growers, The board prepared a series of lesson outlines dealing with problems connected with the produc- tion and marketing of tobacco and rem-4 edles which the farmers could apply. County agents and agricultural teach- ers in the tobacco producing counties attended a series of meetings with a board representative and became thor- oughly familiar with the questions in- volved. They, in turn, conducted a series of meetings of tobacco growers in_their respective districts. As a re- sult of this educational program, to- bacco growers in the Virginia tobacco area were able to reach an informed decision regarding the advisability of marketing their product co-operatively. Plans were developed for the organi- zation of two tobacco marketing asso- ciations in Virginia. Towa Sells Live Stock. A somewhat different project was carried on in Eastern Iowa in connee- | tion with the co-operative marketing of live stock. The board made a survey of 24 counties in this territory to obtain :ntormnllun which might be used to co-operative concentration yards zhmghouz this area. In these studies RESORTS. ATLANTIC CITY, N. J. GALEN HALL ATLANTIC cITY Excallonce Extravagance * GOOD FOOD FINE COOKING Specially attrastive vates for Winter_reservation. &H@mb@n e " au dpalk’s most n- iale ot Tomed for" i clous hnd.—A erican and :-nun eaters fo w o Clientele—most. Too i story fireproof ~addition—special pre-Summer rates. 7B, Thompson & Co. The ST. CHARLES OCCUPYING AN ENTIRE BLOCK ON THE BOARDWALK AT NEW JERSEY AVENUE American and European Plans Attractive Spring Rates Special Dances and Entertainment Thursday and Saturday Nights Formal Easter Ball Saturday, April 4th ta were oblained the live juced in the area, rail and Muuu avail- able, site for concentration yards, the attitude of the producers toward co- n?eratlve marketing and the experience co-operative associations already established. On the basis of the in- formation obtained, & plan was devel- oped for the organisation of a re- glonal live stock selling agenoy which is now at four the Cedar g:-pms territory. organiza- tion later became a Dln of the Iowa Live Stock Marketing Association which, in turn, is affiliated with the National Live Stock Marketing Association, and has obtained loans through the national association to enable it to acquire fa- cilities and merchandise the products delivered to it. The board, thus far, has undertaken and completed, or partly completed, more than 120 major projects of this kind. Seventeen of these have dealt with' the problems of co-operative or- ganizations in the Northeastern States, including @ comprehensive survey of the co-operative assoclations in these States made as a basis for future co- Fifteen such pr East North-Central States, Central States, 46 in the Southern States and 20 in the 11 West- ern States. This does not include nu- merous instances in which eontacts have been made with co-operative associa- tions, extension workers, State depart- ments of Agriculture, teachers of voca- tional fculture and others who are working wWith co-operative associations, either as directors, officers or mana- gers, or in research or educational fields. Help the Farmers. ‘The financial and other assistance extended to co-operatives by the Farm Board is to enable agricultural produc- ers to bave something to say about the price they get for their products, In doing this our purpose is to help the farmer, not hurt some one else. Cer- tainly no one has a valid complaint if, by marketing his own product, the farmer receives a better financial re- turn than when some one else does the job for him. If co-operative marketing due‘stno'. get this result it will not suc- cee Producers generally are coming to see the benefits of organized marketing. Without question the aetivities of the national co-operative sales agencies were a’helpful influence in the market the past year. Low as they were, prices of _agricultural eommodities would have been lower except for them. ‘The Farmers National Gr: Corpora~ tion has merchandised more than 100,~ 000,000 bushels of grain for its 27 co- operative member units; the American Cotton Co-operative Association, with 11 State and regional assocations as members, handled more than 2,000,000 bales of cotton; the National Wool Mar- keting Corporation, its first year, handled 35 per cent of the wool clip of the country and 95 per cent of the mohair for its 28 co-operative member units. The National Live 8tock Market- ing Association new has 20 co-opsrative members and last year marketed about three-fifths of the live stock sold co- operatively. The Farm Board believes that or- ganized effort ot:!y farmers is the key to the solution of their major economie problems. There is no magic by which the Government can do this for them, notwithstanding the flowery promises of a few people Who seem to be more interested in getting farmers’ votes ?{’“n in bettering their financial posi- on. In large measure the success of the co-operative program depends upon the willingness of the farmer to work with, not against, his neighbor. The Farm Board can help, but the actual job of Building and operating co-opera- tive marketing machinery and adjust- ing production to the probable market ESORTS. AT'.A\TIC CITY, N. J, lu:nucm{ TAVE lmfi ETON _- M8 W1 TR HON: Arawrc Ciry m"fim.n WRROWN It Gosts No More To Live on the THE Boordwalk in dilanic City at "BOARDWALK AT TENNESSEE AVE. Offering the advantage of a beach-front room at rates a8 low as you will pay for desirable sscommpdations off the *‘Ship’s Deck” Atop One of rhe Finest Holels ~ In Atlantic City SPECIAL LOW WEEKLY RATES Marvelous culsine: nstionally famous. You'll enjoy every minute at delightfal Colton Manor. Booklet. Write or wire for reservations. OVERLOGKING THE OCEAN SEA WATER Ba THs PAUL AUCHTER A. C ANDREWS Mg Pr SAtlantio Gity e oo RNt 24 floors of luxurious eomfort. Equip: rviee and culsine of o eopelion exconce, 0 Atlantie City’s Great Spring Season January to May inclusive Interesting rates prevail - commenssrate with conditions Golf, Horseback Riding, Roller Chairs, Piers, Theatres, Movies and countless other amusements. T — | olton Manor| 1931—PART TWO mm-&mmmmm In I would like to leave the wm:wmfifinm- of the man en the farm. MARY ALLEN TO RETURN HERE WITH AN ESCORT Girl Found on Coast After Dis- appearance to Be Accompanied by Policewoman, : By the Associated Press. LOS ANGELES, March 14.—Mary Allen, 23, daughter of a Washington, D, C,, family, who disappeared from an apartment here under mylberlolu cir- i rect couie il connections to Sweden, Denmark, Germany For sailings, apply to o+ Naples: ¢ mptuaus i neo: Riviera ors. * CONTE BIANCAMANG _Apr. 4 Apr. 17 May 9 May 22 Reduced rates in first cabin and regular or intermediate second class for fourists. Stopover privileges at all ports Connections to Egypt and Near East o or_local_agents TOURS. "CLARK'S FAMOUS CRUISES "om CRUISE JUNE 29 $.5. Calgaric-$550 up. Iceland, Norway, Sweden, Denmark, Kiel Canal, Holland, (Paris, Rhine, Swi Italy, Russia), England, Ireland. Select clien- tele; the most and best for your money. Hotels, Drives, Fees, etc., included. Ob‘ri 5.5. & Teusist Agenes. ] uzn HSE NW. Whiie' Star Lin Clark, Every Tupe of Traveler o SOVIET RUSSIA « ® Gain first-hand impres- siongpfthis colorful and fas. cinatingland! 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Popular Tours via North Atlantic May 2, May 15, May 30 an later—52 days—$625. Summer Cruise Around the Mediterranean by the new American Export Liner “Exochorda” from New York June 25th. Unusually attrac- tive itinerary; first class ac- commodations; outside state- rooms only. Stop-over privi- leges. Incl usive Fare 795. Old and New Russie —the new travel field—three tours—July 1, July 4, July 8. Iaclusive rate $76. ew York to New York. Co-operation in Russia of the Official Travel Bureau of the Soviet Government, @ Midnight Sun— North Cape— Norwa) weden—from New York June 26—July 8. Our*’Wayfarer's Taur’'—coasist- of a most attractive motor WO s Spain, also covering England and France. ASK FOR OUR EURCPE CATALOGUES Tichets by all Lines ‘ravellers’ Cheques 'I’I-IOS. COOK & SON Washinston Losn & Trust Blds. Telephone: “NAtio Slunsb International Exchanze | inces last Tuesday and found ht in Santa Monica, will return home under official escort. 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