Evening star. [volume], July 27, 1937, Page A-7, Image 7

About Evening star. [volume] (Washington, D.C.) 1854-1972

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*
Establishment of Parity In
come Necessary for
Prosperity, He Says.
Legislation bringing greater pros
perity to the Nation's farmers will
mean comparable benefits to the con
sumers and the Nation as a whole,
Senator George McGill, Democrat, of
Kansas declared last night in an ad
dress in the National Radio Forum.
Arranged by The Star, the forum
program was broadcast over a Nation
wide network of the National Broad
casting Co. It was heardl locally
' through Station WMAL.
Senator McGill, in conjunction with
Senator Pope. Democrat, of Idaho, is
■ author of a farm bill pending in the
Senate, their measure having the fol
lowing four main objectives:
Parity prices to farmers for normal
rupplles of cotton, wheat, corn, rice
and tobacco; parity income in a fixed
relationship to non-agricultural in
come; establishment of an ever-nor- 1
trial granary, and conservation of soil ,
resources.
i exi oi .'\naress.
The text of Senator McGill's ad
i dress follows:
Permit me to express to The Wash
ington Star Radio Forum and the Na
tional Broadcasting Co. mv high ap
preciation of the opportunity afforded
me this evening to speak on your pro
gram.
Problems affecting American agri
culture should be. and I believe are,
of vital interest to all of our people.
Agriculture is our basic industry and
the economic welfare of every citizen
regardless of vocation is affected by
the degree of prosperity enjoyed by the
tillers of the soil. Due to the various
programs during the past four years,
following a time when agriculture to
fiuite a degree by reason of a large
surplusage had sunk to its lowest level
In the history of our country, the con
dition of the farmers, except probably
tn drought-stricken areas, has been
materially improved.
It Is a fart recognized by every fair
minded citizen that for many years
prior to the program carried forward
under the agricultural adjustment act,
American agriculture had been on an :
economic decline. We had witnessed
, the building of a great surplusage, the '
continual falling of eommoditv prices,
the weakening thereby of industry,
business and of our financial institu
tions. This materially affected the
purchasing power of labor and in
dustry for the products of the farm
end depreciated in value the products
rf the farm In comparison to their
exchange value for other commodities
end thereby seriously affected the or
derly exchange of commodities.
The varied adjustment and soil
eonservation programs co-operatively
carried on with the farmers have been
for the purpose, first, of reducing and
disposing of the previously accumu
lated unsalable surplus of farm com
modities; second, to enable the farmer
to attain a reasonable return for his
labor and on his investment, and,
third, to conserve the soil not only to
this generation but to generations to
. rome.
The programs referred to were spon
sored by many of the farm organiza
tion groups, and that such programs
have been of material value Is evi
denced by the facts. In 1932 the
Frees income from American agricul
tural production was $5.337.000,000—
the lowest it had been when we con
sider the acreage under cultivation.
In 1933 the gross income from agri
cultural production was $6,406,000,000.
In 1934 it was $7,276,000,000. In
1835 it was $8,508,000,000. In 1936
1* estimated this income m^as $9,
630.000.000. and doubtless will prove to
be much greater for the year 1937.
Surpluses Predicted.
A situation in all probability will
develop In the near future with which
tnany of the members of the Congress
feel we should deal, or at least with
t W’hich we should be prepared to deal.
For instance, it is estimated that this
year's production of wheat is 240,
600.000 bushels more than will be our
domestic consumption. From the ex
perience of the last several years it
would appear we will not be able to
dispose of more than from 25 000,000 :
to 40.000.000 bushels in export mar- I
kets. This would mean at the end of ]
this year we would have a surplus in
that commodity of 200.000.000 bushels.
If ft like surplus should occur next '
pear we would have the same problem i
confronting us we had in 1932, when
the surplus was 397.000.000 bushels.
Depressed prices would almost in
- cvitably result.
Due to the decision of the Supreme
Court of the United States, the agri
cultural adjustment act, of course, is
ro longer in operation, and in my
Judgment the provisions of the soil
conservation act are inadequate for
the farmers to deal successfully* with
•uch ft situation as I have described i
witn tnis situation confronting the
farmers of America, the junior Sena
tor from Idaho, Mr. Pope, and I on
the 15th of this month jointly in
troduced in the Senate of the United
States a measure looking to the
enactment of necessary laws to deal
with an anticipated surplusage and
, thereby provide for a. program to
Insure complete rehabilitation of
American agriculture. The bill has
been introduced in the hope of at
tracting the members of Congress to a
»erious study of the problem and with
the further hope of resultant adequate
legislation. The bill in its entirety
cannot be dealt with within the allotted
• time provided so generously on this
broadcast, but I shall attempt at least
to explain it In general terms.
The bill contains four major objec
tives.
The first is parity prices to farmers
(or normal supplies of the five major
agricultural commodities — cotton,
►heat, corn, rice and tobacco. Parity
prices are those which would give these
Esjor agricultural commodities at all
me* the same average purchasing
power with regard to the articles
farmers buy, which prevailed in the
period from 1909 to 1914. As to to
* bacoo, however, the period would be
from 1919 to 1929.
The second objective is parity in
eome for the farmer, or a net income
whieh bears to the income of the non
agricultural population the same re
lation as prevailed during the base
period.
Ever-Normal Granary Plan.
The third objective is without inter
fering with parity prices to establish
an ever-normal granary for each of
tha live major agricultural commodi
* ties. Under the bill the ever-normal
granary is designed to make available
domestic consumers reserves which
would provide adequate supplies at
•air prices in years of drought, flood
nr ether adverse conditions as well as,|
*
Outlines Farm Aid Plan
SENATOR GEORGE McGILL.
—Star Staff Photo.
in years of plenty and which would
also take care of profitable exports
during such periods. It is also con
templated that the ever-normal
granary will protect the consumer
from abnormally high prices.
The fourth objective is to conserve
our national soil resources and to deter
production of a surplusage for which |
there is no adequate market, present
or prospective, a surplusage the pro
duction of which deprives the soil of
its fertility without producing com
mensurate income to the farmer or
benefit to the public.
It is among the purposes of the bill
to assure the farmer substantially a
parity return for normal supplies of
major agricultural commodities based
on the theory that such a return is
fair to all our citizens and that na
tional prosperity cannot exist unless
those engaged in agricultural pursuits
share in that prosperity. The bill re
jects the philisophy of scarcity to the
advantage of both the consumer and
the farmer.
It is the view of sponsors of the bill
that it will bring to pass a stabilized
market and prevent fluctuations in the
cost of feedstuffs to dairy and live
stock farmers by stabilizing the price
for feed products and thereby sub- ,
stantially aiding dairy and live stock 1
farmers in obtaining a parity income, j
A stable supply of such major com
modities would directly benefit pro- ;
ressors and those who provide storage!
and transportation facilities, equip- I
m»nt and materials and would provide
a more uniform employment for labor l
engaged in those activities.
The measure includes provisions for
parity payments and surplus reserve
loans, acreage diversion, storage under
seal and marketing quotas.
It is the theory eontatned in the
bill that the surplus reserve loans
therein provided for would be avail
able at supply levels and will at all
times have a stabilizing effect on the
farm price.
Under the measure co-operators may [
be required to divert base acreage from i
the production of a commodity if the '
total supply exceeds normal at the be- !
ginning of a marketing year and if
the ever-normal granery supply is
adequate. Such diversion is calculated >
to make effective the objective of par
ity and without interfering with main
tenance of parity prices and likewise
to make effective the objective of an
adequate ever-normal granary supply.
In no event is the amount of diversion
to be so great vs to bring the total
supply at the end of the marketing
year to less than normal.
The marketing quotas as provided
by the measure are important and are
to be only effective under such con
ditions as I shall relate further on
in my remarks. When the program
provided in the bill is in effect if
the total supply of a major agricul
tural commodity at the beginning of
a marketing year exceeds normal by
more than certain amounts, market
ing quotas are then to be placed in
effect for the current crop of a com
modity. Thus the marketing quota
level for cotton for instance is a total :
supply 15 per cent in excess of nor- !
mal, or 20.900.000 bales: corn, 10 per |
per rent in excess of normal or 371,
000,000 pounds, and cigar tobacco 10
per cent in excess of normal or 416.
000.000 bushels; wheat, other than
white wheat. 20 per cent in excess of I
normal or 893,000.000 bushels; rice, I
10 per cent in excess of normal or .
12.700.000 barrels; dark tobacco. 10 !
per cent in excess of normal or 416,
000,000 pounds. The program pro
vided by the bill being in operation
supplies of such magnitude would not
frequently occur because of the vol
untary diversion which would be in
effect from time to time. Such large
supplies would not likely occur in
■7vai° cAunuiamary yields. Such
maiketing quotas for a commodity
would be *o fixed as to make avail
able during the marketing vear of
at least a normal supply of the com
modity and would in no event be less
than normal.
Under the provisions of the bill the
marketing quota for any commodity
cannot be greater than the ever-nor
mal granary supply level. Should a
farmer, who by reason of flood,
drought or adverse conditions, fail
to produce an amount equal to the
normal yield of at least half of his
base acreage for a commodity, the
quota would not be effective.
In the administration of the act
the Secretary of Agriculture is au
thorised and directed to provide for
the adjustment administration
through State-wide and local commit
tees or associations of farmers when
ever practicable. Co-operative associa
tions an to be accorded such recog
nition as will promote efficient meth
ods o( marketing and distribution.
Acreage diversion is to be carried
forward through the supervision of
the local associations of farmers or
producers.
Follows Farm Group Idea.
The measure in many of its aspects
Is similar to a measure containing the
provisions of proposed legislation re
cently outlined in hearings before the
Committee on Agriculture and Fores
try of the United States Senate and
before the Agricultural Committee of
the House by representatives of vari
ous farm organization groups.
The junior Senator from Idaho, Mr.
Pope, and I have included in this
measure provisions different from pro
visions in other measures of a simi
lar character, which chiefly have to
do with the administration of the
program, and which provide for the
holding of a referendum each year
among the producers of a commodity
to determine whether the program
shall go into effect as regards such
commodity.
Under such referendum, if for any
year more than one-third of the pro
ducers of a given commodity should
vote against the program, then for
that year it would not be made effect
ive as to such commodity. Should
two-thirds or more of the producers
of such commodity at such referen
dum vote in favor of the program. th»
program for such year would then be
effective as to such commodity.
It has been our purpose to frame
the measure so that when the pro
gram is marie effective as to any
commodity, its control and adminis
tration shall be, in so far as is pos
sible, in the hands of the farmers or
producers. Such provisions are de
sirable, it would seem, and would make
the program a co-operative one among
the farmers and render the measure
more certain of accomplishing the
ends for which it is designed In
other words, the desirability of the
program with regard to a commodity
would be a question to be determined
by the producers of such commodity.
It is my view that the present soil
conservation act at the present mo
ment is generally operating satisfac
torily among the producers and under
present conditions, and such condi
tions as we have had in recent years,
that act provides a good agricultural
program. However, good crops or ab
normal crops would doubtless in a
short period create a large surplusage
In major commodities and our con
tention is the Congress should provide
a measure whereby the farmers of the
country would be prepared to deal
with auch a aituation. Such a sur
plusage would likely bring to pass de
pressed prices to a degree ruinous to
agriculture. Congress should in my
judgment, prior to such anticipated
condition, be prepared and e»iact a
well-considered measure to deal with
such a condition.
Wants Full Hearings.
It is our hope that hearings will be
had on the measure by the Committee
on Agriculture and Forestry of the
United States Senate and by the Com
mittee on Agriculture of the House
of Representatives and that all In
terests may be fully and properly
heard at such hearings, including rep
resentatives of the various farm or
ganizations of the country, and that
they will present any suggestions they
or any of them may have in order
that the Congress may be prepared to
enact a well-considered and adequate
measure in behalf of the fanners of
the country. One which will look to
taking care of such a situation as
likely will occur in the event of a
large surplusage and such as we have
experienced in the past in major ag
ricultural commodities.
Natural economic laws cannot be
suspended, set aside or abandoned,
and nature has decreed that in this
country in particular agriculture is
basic in our industrial system, a fact
which has been recognized by virtually
all historians, statesmen and econo
mists throughout our national life.
The welfare of labor, the welfare of
other industries and the welfare of
the basic industry, agriculture, go
hand in hand. Statistics from the
Bureau of Census, Department of
Commerce and the United States
Bureau of Labor Statistics, Depart
ment of Labor, disclose that each year
the annual manufacturers’ pay roll to
its laborers is approximately the same
in amount as the gross income from
agricultural production, and that,
therefore, as the agricultural Income
increases in like proportion the wage
pay roll increases, clearly disclosing
that labor in every form of industry
as well as industry itself and the
welfare of the laboring class all go
hand in hand with the welfare of the
farmers of the Nation.
Let all our people strive earnestly
toward providing an adequate agri
cultural program.
SALVATION ARMY ASKS
RESPONSE TO APPEAL
The Salvation Army is faced with
the prospect of curtailing its activities
unless the public responds immedi
ately to the call for discarded clothing,
furniture and other articles, Adjt. Al
bert E Baldwin said today. The in
stitution's pay roll, on which there
are 90 persons. 40 per cent of them
local men, would have to be slashed
drastically in such circumstances, he
said.
The adjutant announced comple
tion of reconditioning work on the
sleeping quarters located at 526 First
street. Approximately $10,000 has
been spent in installing 80 new beds,
interior painting and for the pur
chase of eight new trucks to be used
in collecting furniture, clothing and
waste materials.
VETERANS PRESS
Commanders of 35 Posts
Back Call for Federal
Investigation.
By the Assoclsted Press.
NEWARK, N. J., July 27.—Thirty
five commanders of New Jersey war
veterans’ posts sought action today on
resolutions asking Federal and State
investigations of the German-Amer
ican bund and indorsing demands by
Representatives Dickstein and Dies
and a C. X. O. regional director for
a congressional inquiry into alleged
un-American activities at the bund's
New Jersey camp.
Gov. Harold G. Hoffman, whom W.
J. Carney, New Jersey C I. O. director,
called “lax in the investigation of the
Nazi encampment,” said he would
consider “specific instances of law
violations.”
Recalls C. I. O. Stand.
Carney charged in a telegram read
before the House of Representatives
yesterday that Hoffman "condemned
the C. I. O ” in banning sit-down
strikes several months ago, then
added:
“It is significant that Gov. Hoffman
had no word of condemnation for un
American goose-stepping Nazis."
Speaking in behalf of Representa
tive Dies' (Democrat, of Texasi reso
lution for a congressional investiga
tion of “un-American propaganda. '
Representative Dickstein, Democrat.
r 1
of New York told the House Hitler had
sent "a new consul general here, in
the State of California.”
Dickstein identified the official as
Von Killinger and said he was re
sponsible for the “amalgamation of
the united front of German Nazis
and Italian Fascists ”
Hoffman said at Newark he wouldn't
“pussyfoot” on the issue. Charges
could be laid before him, he stated,
or before the prosecutor of Sussex
County, where the bund's New Jersey
camp is located.
Urge Prosecution.
One of the veterans' resolutions
asked the Department of Justice and
Congress to “ascertain the sources
and extent of subversive activities in
this country, to be followed by crim
inal prosecution.”
The other requested New Jersey's
attorney general, David T. Wilentz,
and the State Legislature to investi
gate the camp and "prosecute leaders
of the German-American bund wher
ever criminal acts are uncovered.”
The American Legion, Veterans of
Foreign Wars, Irish War Veterans,
Order of the Purple Heart, Jewish War
Veterans and Sons of Jewish War
Veterans were represented at the
meeting in Newark last night which
adopted the resolutions.
RECEIVES EARHART GIFT
Niece of Lost Aviatrix Gets Birth
day Present From Bombay.
MEDFORD, Mass., July 27 iff**.—
Little Amy Morrissey, niece of Amelia
Earhart, lost in the Pacific while flying
around the world, yesterday received
a oirthda.v present which was mailed
by Amelia when she was in Bombay
—six Oriental bracelets made of gold
and spun glass.
PAGEANT THURSDAY
Groups Co-operate for “Our Con
stitution’’ Presentation.
A pageant depicting the drafting of
‘ Our Constitution” will be presented
Thursday night at McKinley High
School, Second and T streets north
east, under auspices of the McKinley
Langley Community Center and four
citizens' associations.
Approximately 150 men, women and
children of the community will take
part In the pageant, which is directed
by Miss Pauline Oak. The cast has
been selected from members of the
various groups sponsoring the project.
The Brookland, North Capital, Rhode
Island Avenue and Trinidad Citizens'
Associations are co-operating,
—-•
JOIN FO’CSLE CLUB
Bv passing a quiz based on rarely
used nautical terms compiled by Navy
Department experts, six officials of
the Corinthian Yacht Club were initi
ated into membership in the Fo'csle
Club at a luncheon meeting at the
Harrtington Hotel yesterday.
The new members and tneir posi
tions in the Corinthian Club are Sew
ell Shreve, captain; G. B. Gill, fleet
captain: C. E Ingling, ex-commodore;
Harry E. Smith, captain; E C. Baltz,
commodore, and Charles E. Peterg,
ex-commodore.
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Get this professional-type treatment that stop*
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Thoosaads who suffered tortures know that 3X1
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failed. Costs $1.00—a low price for sure relief.
Cl’AIANlsil If not aboolutely satisfactory
return used bottle for full refund. The 3XB
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Sold by A. G. Spalding A Bros.. Peonies.
Liggett's. Whelan's, Unity and other good
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4
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The Floating Ride of the Airflow
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