Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-18
NEW CO.OPERATIVES SEEN
AS BOON TO AGRICULTURE
Big Business Methods Under Recently
Enacted Law Held Forward Move
for American Farmers.

in the group. and nearly as many. more
pledged as this is written. There are
In all nearly 500 cooperative organi-
cations in the fruit and vegetable field,
and all have been invited to attend con-
ferences and learn of the advantages
offered under this new national project.
Similar procedure has been followed
by the newly organized Farmers Ma
tional Grain Corporation, and doubtless
will be duplicated by the wool growers
after their October meeting.
Farm Board Has Jurisdiction.
The Farm Board, which came into
being June IS after the hectic activities
attending the extra session of Congress,
will have jurisdiction over these ma
tional units which, although capable Of
independent formation, must meet rigid
conditions in order TO participate in the
newly established Federal revolving
farm fund. To that end the organiza-
lions are being built on the exact lines
advocated by the Federal Farm Board.
1t might be well, in view Of the fact
that very definite progress seems to
have been attained toward farm relief
through these recent developments, to
state in concise form the situation Of
obstacles-chiefly the debenture plan
which developed to halt and threaten
the administration farm bill in the re.
cent extra session of Congress.
In brief. the debenture provisions OF
the Senate bill contemplate, in effect,
additional assistance to depressed agri-
culture by giving the farmer what
amounted to a bounty on the farm
products he exports. This bounty
would amount to one-half the duty
that would be paid on the same prod
ucts if imported.
Theory Of Debenture Explained.
The example of wheat is the easiest
to comprehend. Imported wheat is
dutiable at ~ cents a bushel. If an
American farmer shipped 1000 bushels
of wheat to Europe at the port Of ship
ment he would receive a certificate.
called a debenture, of the face value Of
one-half the import duty on the i 900
bushels of wheat, or $40. This export
certificate would not pass current, bit
would be acceptable only in payment
of import duties. The farmer would
sell his certificate to a customs broker
or importer who had large dealings
with the customs. He would be obliged
to take a discount-say per cent
broker would pay him $199.50 for the
certificate.
In that way the farmer would receive
almost 5000 in addition to the price he
got for his wheat.
Those who favored the debenture
plan declared that it was not q sub
sidy: that the fact that no money was
actually paid out of the Treasury to
the shipper took the project out Of
that category. The only result Of such
legislation, they insisted, would be that
the flow of money into the Treasury
from customs duties on farm products
would be arrested. It was provided that
the Farm Board would decide whether
the debenture would be put into opera
ton in any case. If it led to overpro-
duction Of farm products In order to
deliberately take advantage Of the de-
benture payments the board would have
the power to reduce the percentage OF
duty collectable by the exporter, or
even suspend the operation Of the
debenture.
Mr.. Hoover Feared Political Pressure.
against the debenture clause was ac-
tuated by his announced conviction
that no Farm Board would be able to
resist the pressure to put the debenture
into operation and to keep it in opera
ton despite any overproduction. It
was indicated that the farmer-perhaps
rightly-would feel that he had some
thing coming to him" in view Of past
experiences and lean days.
In truth the American farmer has
had trouble aplenty. He has had no
farm party or prospect Of one, and in
recent years, at least, he has been &C
tually at bay.
The tangible physical value Of farm
ing enterprise in the United States is
about $4,000, 900 900, and little less
than half the land area of the Nation,
or 925 100000 acres. is given over to
the industry. The total value of farm
products last year was about $1,000
100000. Nearly $4,000, 600 900 worth Of
the years production was used to feed
live stock. for seed and for general pro-
duction requirements. More than 80
per cent Of the remaining value came
from the sale Of cotton, hogs, cattle.
wheat, milk, corn. butter. eggs, tobacco
and potatoes, with values in the order
named.
Staple Market Sought.
II all of this entire operation had been
under one corporation control last year,
it would have paid about per cent on
its total capital investment, but to do
this it could have paid an annual wage
to its 100000 hands of one-half as
much as is paid in factories.
Nor could it have spared any salaries
whatever for general officers, superin-
tendents and technical experts This
situation to some extent IS inherent in
an industry which must contend with
such variable factors as variety Of soil,
weather and efficiency in workers. And
with gambling" developed by weather
effect upon yield, the perishable char
acter of many commodities, and varia-
ton in quality and difdculty of expand
ing the market by high-class salesman
ship, there has developed vital need
of standardizing cost Of production and
seeking in every possible way to stabil-
lie the market. The latter factor has
been an almost impossible task for the
individual farmer or local cooperative
organizations.
But where unity might give strength.
there have been 100000 managers in
this highly individualistic business
There has been tremendous loss through
insufficient cooperation or standardiZa-
ton of method. Each farm is q sep
arate business unit, and each farmer Is
both manager and worker. Not quite
two-thirds of these managers are own
ers. the remainder tenants. So the
farmer Is in many cases investor, man
ager. laborer. He has little opportunity
or inclination to further extend his
duties into the field Of salesmanship.
Cooperation to Be Achieved.
Few American farmers confine them
selves to a single productive average
produces from three to five commodi-
ties. There are more or less extensive
zones of production, such as the cotton,
corn, wheat and beet sugar belts. There
aiso are fruit areas, dairy zones and
potato areas. But all of q given COM
modify is seldom produced in q given