Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-18
CONNALLY UPHOLDS
EXPORT DEBENTURE
Demands square Meal" for
Agriculture, in Radio
Forum Address.
Continued From First Page.)

imported goods" ..
This will raise the price of farm prod
ucts, Senator Connally contended,
stimulating competitive buying between
exporters and domestic buyers, who will
be forced to meet the exporters price.
He explained that the plan would not
take any money out Of the Treasury,
but would intercept customs duties on
their way to the Treasury.
Summing up the case, Senator Con-
nally said the farmers economic Ills are
fundamental and cannot be cured by
dieting" He asserted that agriculture
is tired of eating at the second table
after other industries have gorged their
appetities," and the farmer has had
enough Of "hot air and sunshine" need
ing now "a little service himself"
Senator Connally's speech in full
follows:
Connally's Address.
Ladies and gentlemen Of the radio
audience:
In view Of the wide discussion of
farm relief In the press, in Congress. on
the stump, In college debates and
around the stove in every country
the term farm relief" would suggest
something definite and concrete. It Is
the sad but simple truth that such Is
not the case.
Agriculture is sick. The symptoms of
the patient are apparent. Yet the doc
tors cannot agree upon the remedy or
treatment.
The Government of the United States,
however, Is committed to some form OF
legislative relief. Both major political
parties have made official pledges to
furnish relief.
II is acknowledged that agriculture
Is not upon a plane of economic equality
with other industries in the United
States. In recognition Of this fact the
platform Of the Republican party made
It's pledge to the American farmer in
the following words:
THE vigorous efforts of this admins
tration toward broadening our exports
market will be continued. The Republic
can party pledges itself to the develop
ment of measures which will place the
agricultural interests of America on q
basis Of economic equality with other
industries to insure its prosperity and
success"
Cites Proof Of Depression.
- AS affording substantial proof of the
depression Of agriculture 1t may be
shown that the farm population OF the
United States at the beginning Of 1929.
according to the annual estimate OF the
Bureau of Agricultural Economies OF
the Department of Agriculture is the
smallest for the past 20 years. and in all
probability for the past 80 years. On
January /, 1910, the farm population
was 32,o76,96 and on July l, 1929, 1t
was 27,5l1 900.
In the bureaus survey for July. 1929.
It is shown that taking the 1910 to
1914 period as a basis Of 100, the prices
paid by farmers for commodities
used in living rose from 90 in 1910 to
1852 In 1928. His production commodity
costs rose from SO in 1910 to las in
1928. Farm wages rose from 81 in 1910
TO 1859 in 1928. His taxes increased from
100 in 1914 to 254 in 1925. For the same
period, the average Of 80 items Of farm
products rose from 103 IN 1910 to 139
In 1928 Against this the prices paid by
farmers for commodities bought rose
frome 90 to 1855. The ratio OF prices
received to prices paid declined from
JOG In 1910 to 80 In 1928, or about Is
per cent. The bureaus survey OF farm
returns showed a slight increase for
oWner-operated farms in all parts OF
the country show an average net re-
turn of 1885, for 1928, as compared
with an average return Of 1920 on
1889 farms in 1927. The average size
of the farms reporting for 1928 was 2S4
acres, with an average investment OF
$15,4l7. No tenant farms were tnclud-
ed. Receipts less cash expenses aver
aged $1,000, In addition to which the
farmers used home grown food products
at an average of $3.50 at farm prices.
The value Of fuel and house rent was
not reported. The total expenses do
not include any allowance for the labor
Of the farmer and his family. A net
return Of 1884 on q $4,000 farm In
vestment and on the labor Of an entire
farm family Is rather conclusive evil
darnn that tha "a c Y1Ot IN q Y1Iane
of economic equality with industry.
Buys on Inflated Domestic Market.
Efforts to give relief by some device
to make the tariff effective on far1a
products have been based upon the fact
that the farmer must buy IN an arti-
3icially inflated domestic market, while
he must sell his products In o world
free highly competitive market This
Is undesirably true in the case Of those
crops Of which we produce a surplus
above domestic consumption. The most
notable are cotton and wheat In the
case of farm products Of which we
produce less than the domestic con-
sumption, the protective tariff can be
made effective In some f4sree.
The tariff cannot Sc made effective
on exportable SURPRISES. The surplus.
under the necessity Of export, must
meet in the world market the COMPETE
ton Of similar articles wherever pro-
duced. The exportable surplus reacts
upon the domestic market and forces
down the price to approximately the
world level.
The farmers production costs have
vastly increased. In earlier times we
possessed large areas of virgin and
cheap lands. The increase in land values
constituted the farmers profits. Values
Rave ceased to climb. They have de-
clined. Fertility of soil has deteriorated,
with consequent expense Of fertilizer
and added labor costs In its use. What
were once regarded as Injuries have
become necessities and have increased
the farmers expenses without proper
tional increase in his returns. Under
the transportation act, freight rates,
both on what the farmer sells and
what he buys have radically increased.
State and local taxation has mounted
rapidly within the last two decades.
Farm lands are visible property. The
tax gatherer can easily e1c&ie them.
Real estate in tho agricultural States
0eAEg the 5diuen of taxation. Roads,
schools and public improvements cost
relief may be secured through revision
of State tax laws by placing . larger
proportion Of taxation on fntangibleS
and income-producing sources OF rev.
eriue. The wide use Of automobiles
has made our highways interstate road
ways and the cost and maintenance OF
the same ought not be borne chiefly by
local taxing units Another difdculty
lies in the fact that millions Of farmers,
each conducting a separate agricultural
unit, cannot be effectively organized as
in industry. Industry Is highly organ
lied. It is able to accurately adjust pro-
duction to demand. Much OF its oper.