The producers news. [volume], April 26, 1929, Page PAGE THREE, Image 3

About The producers news. [volume] (Plentywood, Mont.) 1918-1937

Image provided by: Montana Historical Society; Helena, MT

                
The American Agricultural Situation
By Sen. Lynn J. Frazier, of North Dakota
the farm problem delivered by the
Speech
senator frotn North Dakota
adio station WRC.
Friday, April 1 2, at Washington,
on
senior ;
D. C., and broadcast
on
over r
The people of the United States, greetings:
The senate and house committees on agri
cutlure have been holding hearings for two
weeks. Among those who testified have
officials and representatives of vari
ous farm organizations, farmers, college
professors, economists, business men, poli
ticians and other individuals with some pet
theory for agricultural relief or assistance.
All agreed that there was a serious farm
problem and practically all agreed that
something should be done in the way of leg
islation, but as to what congress should or
could do about it, their opinions varied from
a technically theoretical plan for govern
ment controlled farm co-operatives, with
regulatory authority to readjust the whole
plan of agriculture on a scientific basis, to
the statement that the fanners were hope
lessly broke and bankrupt and that the soon
they realized it the better, for then they
could move to the cities and join the already
large army of the unemployed.
VALUABLE INFORMATION RESULTS
All in all, however, the hearings brought
out much valuable information and many
helpful suggestions for farm legislation.
The general opinion seemed to be that con
gress should enact a measure providing for
the creation of a federal farm board with
wide latitude of authority and with an ade
quate appropriation to assist co-operatives
in organization and to finance them that
they may carry out an orderly marketing'
[program and thus eliminate some of the un
necessary expense and tend to stabilize their
lown market ; also, that there should be
l&ome readjustment of the tariff.
I Much interest was manifested in state
ments that President Hoover had made dur
ftng the recent campaign, and many drew
Hie conclusion that the enormous vote that
■r. Hoover got was necessarily an over
whelming endorsement of his views on the
■arm question. Of course there were many
■ssues entered into the last campaign, but
■here is no doubt that the result was a di
rect indication of the voters' confidence in
Mr. Hoover.
IVGRICULTURE BANKRUPT
I The condition of agriculture is most de
li) orable. If the condition of any other
beat industry were half as bad, congress
Mould have come to its relief long ago. One
b the sad criticisms of our American people
It Î 16 * 1 ' Interest in great national
■roblems that are vital to the welfare of
»r nation. I trust that I may say some
Wy which will help arouse interest and
crea te public sentiment in favor of ag
■cultural legislation.
B^'iculture employs more than three
ies as many people as any other industry.
Ticulture bas an investment of more
been
er
Somebody mag hand it to gou on a silver platter—and
he mag not. Once in a blue moon someone is on the
receiving end — but, sometimes he who asks for bread
receives—a stone.
peaking of rann Relief
n
IIHIIMIIMII
■I
•(•••••••••a
•iMtMnmmui
pie old saying, that the gods help him who helps himself, sometimes
P y m this modem world of brotherly love. Henry Ford did not ask
Lfutomotive Relief" but installed machines that REDUCED
I h will be a fine thing if Hoover does provide it, but the surest and
pest way is to "Hooverize" on COST OF PRODUCTION.
Company IS NOT in the market with "cheap machinery.
It is THE
QUALITY LINE, that will give you BETTER SERVICE for MORE
YEARS at LESS EXPENSE. THESE ARE THE REQUIREMENTS
THAT YOU MUST DEMAND — THAT YOUR EQUIPMENT
MUST HAVE—OF YOU DESIRE SUCCESS.
yy
The Massey-Harris Company invite you to really make a study
of production cost problems. Not only the FIRST COST of your
equipment, but also the OPERATING COSTTS in the field, and—last
but not the least—the REPLACEMENT COST OF EQUIPMENT.
Sometime the "cheaper" tool is the costlier tool. The Massey-Harris
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you must use proper methods—SUMMER FALLOW
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you must COMBINE
■to
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Y 55
than twice as much as any other industry.
The money value of farm productions is
more than twice as much as that of any
other industry and the farm products are
of vastly more importance than all others,
as they constitute the food and other es
sential products necessary for the very life
of our people. It must be conceded that the
production of food products is most im
portant, yet, in recent generations, agricul
ture has not been on anything like a parity
with other industries, and, since 1920, farm
conditions have gone from bad to worse.
The deflation started by action of the
federal reserve board has resulted, up to
the present time, in a reduction or loss
farm values and farm products of over 40
billions of dollars. The actual aggregate loss
es sustained by farmers have amounted to
six and one-half billions in a single year.
The result is that agriculture as an in
dustry is bankrupt. Millions of farmers have
lost their homes, their land and other prop
erty through mortgage foreclosures, and
other millions are hanging on through len
iency of their creditors.
on
MILLIONS OF FARMERS LEAVE LAND
According to government figures, 2,155,
000 farm people left the larms in 1928, and
in 1927 over 1,900,000. Of course there are
always some people going back to the farms
from the cities, and the birth rate is higher
than the death rate, so the figures given
do not represent the decrease in farm popu
lation. But it is mighty significant that the
farm people have been leaving their homes
at the rate of about two millions per year.
Some of this number retired voluntarily but
the great bulk of them left the farms be
cause they could not make ends meet—be
cause they were starved out. They went to
the already overcrowded cities to compete
with labor at any work they could get to do.
SPECIAL SESSION JUSTIFIED
There are several contributing causes
that have helped to bring agriculture to its
present condition: lack of co-operation by
the government, deflation of credits, unfair
markets, lack of organization, unfair tariff,
high freight rates, high taxes and general
high cost of operation. Agriculture is of
enough importance in this nation of ours
and its present condition is such as to justi
fy the president in calling congress in spe
cial session, and congress must do its part
by meeting the situation fairly and square
ly?.
FARMERS ONLY ASK SQUARE DEAL
If agriculture is to be put on a parity with
business interests, congress must do one of
two things: either take away the existing
special privilege legislation for the business
interests,or give the farmers a proportion
ate share of special legislation. The first
proposition seems to be impossible at this
time, so it is up fô congress to
legislation which will tend to givp the farm
ers a square deal. The same spirjit of co-op
eration should be shown to agriculture
has been shown to other industries.
The federal reserve banking act was
passed by congress which practically turned
over the credit of the nation to the banking
board for the interests of the big banks.
The federal reserve board was undoubtedly
responsible for the beginning of the 1920
deflation. The farm land bank and inter
mediate credit bank laws should be amend
ed to enable them to finance agricultural
operations through national credit at a low
rate of interest. This would prevent unfair
and unjust deflation.
enact the
as
FARMERS UNORGANIZED
The farmers' marketing situation has
been compared to six million factories with
out any selling agency. The farmers
organized and are compelled to sell their
products on an organized market at prices
manipulated and fixed by organized busi
ness interests. No industry can possibly
succeed when they are compelled to do bus
iness that way..
CONGRESS SHOULD ASSIST
COOPERATIVES
The fanners are no exception to the rule.
Congress should, by all means, pass legisla
tion to assist co-operative organizations.
The federal farm board should be given au
thority to stabilize farm markets even to
the extent of fixing a minimum price
staple products, if necessary, such price to
be based on average cost of production and
a fair profit. The farm board should be au
thorized to buy or build warehouses and cold
storage plants in order to facilitate fair and
orderly marketing.
WHEAT GRADES UNFAIR
The present government grades of wheat
are not fair to the prdoucer, but work to
the decided benefit of the grain buyers and
millers. Wheat should be graded on its val
ue for flour and bread making but the gov
ernment standards grade it on weight, col
or, moisture and amount of so-called foreign
material. These standards are the means of
penalizing the farmer to the extent of mil
lions of dollars each year. For i example,
when there is smut in the farmer)
he is paid a lower price, say ten cents per
bushel. On a thousand bushel carload that
amounts to $100. When the miller gets the
wheat, almost all of the smut can (be blown
out, and any that is left is taken out by the
washing and scouring process "pliât the
wheat is submitted to in all up-to-date mîïïs
before grinding it into flour.
This is only an incident where Ithe agri
cultural department which costs the tax
are un
on
s' wheat,
payers annually $155,559,990 and supposed
ly for the benefit of agriculture, makes the
farmers the "goat." The secretary of agri
culture has the power under the United
States grain standards act to change these
grades.
GIVE FARMERS A TARIFF, TOO
The present traiff law has been a great
benefit to the manufacturers and perhaps
some benefit to agriculture but statistics
were given at the agricultural committee
hearing to show that since the present tar
iff law has been in force that the United
States has imported an average of $600,
000,000 more of farm products than we have
exported and that it would take 45 million
acres of farm land to produce the imported
farm products that could just as well be
produced in the United States if proper tar
iff were placed upon them to make it prof
itable to produce them here. Congress must
give agriculture its proportionate share of
protection under the tariff. The farmer's
cost of production is out of all proportion
to the price he receives and the price he
receives for his products is out of all pro
portion to the price he pays for everything
he buys. This situation is unfair and eco
nomically sound.
SHOULD CREATE FARM BOARD
Congress created the interstate
jvierce commission and by the provisions of
the bill in the interest of railroads the
rates are fixed to give them a fair profit.
The producers of food products are just
important as the railroad companies, and
congress should in all fairness create a farm
board with power to do for agriculture
what the interstate commerce commission
does for the railroads. Freight rates and
taxes must be adjusted to accord with pric
es of farm products, or the prices of farm
products must be adjusted in accordance
with freight rates and taxes.
FIX PRICE OF WHEAT AND COTTON
Much has been said about the surplus of
farm prdoucts, especially as to wheat and
cotton, and that the surplus that is sold in
the world market sets the price for the
wheat and cotton sold for home consump
tion. In my opinion, the federal farm board
should have power to determine average
cost of production of staple farm products
—take wheat for example—and should pay
that price, plus a small percentage of profit
to the producer for his proportionate share
of the product for domestic consumption. If
it were found that only 75 per cent of our
total wheat produced in a given year was
needed for home consumption, let the board
pay the determined price for 75 per cent of
eachjiroducer's wheat, and hold the balance
or 25 per cent in government warehouses
and advance to the farmer 80 per cent of
com
as
the world price on the warehouse receipt.
When the surplus was finally sold by the
board, the holder of the warehouse receipt
would be paid the balance of the payment
less the necessary expense.
Thus, if the surplus sold far below cost
of production, it would tend to automatically
regulate the amount of production. I am
firmly of the opinion that a system of mar
keting along this line could be worked out
that would put agriculture on a paying bas
is. All the farmer wants is a square deal
—cost of production and a little profit.
FARMER GETS ONE-THIRD OF
CONSUMER'S DOLLAR
Some people will naturally ask what about
the cost to the consumer. Under our pres
ent system, according to the best obtain
able figures, the producer now receives nine
billions of dollars for his farm products and
the consumer pays 30 billions for them. Of
course much of this is legitimate expense,
but, in my opinion, with proper distribution
the margin between the price the producer
receives and price the consumer pays can
at least be cut in two. It is estimated that
the annual net loss to the farmers of the
nation is 6 1-2 billion dollars and to put him
on a paying basis he must receive 61-2
billions more than he now gets. I believe
that can be done by proper distribution and
handling and not raise the ultimate price to
the consumer.
During the last few months, wheat prices
have fluctuated from approximately $2 per
bushel to $1 per bushel and the price of a
pound loaf of white bread has held consis
tently at 9c ; and a pound loaf of whole
wheat bread which contains the cheaper
parts of the wheat that do not go into the
white flour, has sold consistently at 11 cents
per loaf. Many other similar examples can
be cited.
FARMERS SINKING INTO DEBT
The farm situation, under present condi
tions, is far from hopeful. For the past 8
years the farmer has been going deeper
and deeper in debt or has lost out entirely.
It is not a pleasant prospect to look forward
to; it is a mighty poor argument to put up
to the farm boys and girls to get them to
stay on the farms, to say if you are good
boys and girls and get up early and work
late and stay by the farm long enough, you
will go broke and lose house and home. Yet
that is exactly the existing condition.
NEED CALL FOR HELP
The basic industry of our great nation
needs assistance to save it from utter down
fall. An emergency exists. Will you do your
part? Public sentiment is essential. Do your
bit to help get worth-while farm legislation.
i