Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-08
FUND WILL PREVENT
DUMPING OF CROPS
Greatest Use of Farm Boards
Resources Is Mainly Psy-
Geological, 1t Is Believed.

How the farmers Of the country, two
thirds Of whom are not members of CO.
operative organizations, are to be per-
suaded to join such institutions Is really
the crux of the Federal Farm Boards
problem.
After the first few weeks Of pre-
| liminary organization the board has
settled down to q consideration of the
| main detectives of the new law. The
| question Of advancing money to CO.
| operatives who will purchase crops at q
base price or the lending of funds for
physical facilities for storage Is Sec
ondary In the opinion of members Of
the board and 1t Is not likely that much
money will be advanced during the
present fiscal year for that purpose
Indeed 1t begins to appear likely that
| out Of the $150,000, 600 appropriated by
Congress only about fifteen or twenty
million will leave the Treasury for the
time being.
The greatest use which the revolving
fund Of $500.000,000 is going to have is
psychological. BY standing ready to
advance money for crops much Of the
dumping of products will, It Is hoped, be
avoided. The real Job, however, is to
| f1nd cooperative organizations with
whom the natural relations can be
established firmly by the board. There
are approximately $4,000 cooperative
| associations in the United States. Many
OF them are not we'll organized and
some OF them compete with each other.
In some regions there are no co-opera-
tlYes at all.
Improve C0-Operatives.
The Federal Farm Board cannot very
fAn 70 xx,I,;a
ne snail join nor can 1t stand sponsor
| Tor some OF the co-operatives that are
now in existence. But on the nature
OF the security given for the loan and
the strength Of the co-operatives the
board will in the last analysis determine
| whether money shall be loaned. This
| will make the Federal Farm Board in
directly influential not only in setting
up more cooperative associations but
| in improving the character Of some Of
the present co-operatives.
After a number Of co-operatives have
been organized in a commodity it be-
| comes necessary for larger organiza-
ton or holding company to be formed
to pool the interests Of all the CO.
operatives. There are probably many
changes in prospect in the whole system
of cooperative marketing in America.
The legal phases are pretty well thrash
co out ana the courts nave passed
upon the operations of the various pro-
ducing organizations so that very little
difficulty in that direction Is anticipated.
Management is the paramount factor in
making a cooperative successful
When the cooperative organizations
are functioning effectively it also be-
| comes necessary that they should con-
troll the largest part of the crop pro-
duced. so that Sterilization operations
can be undertaken. BY staying out
of the co-operatives the majority of the
producers in = given commodity can
thwart the detectives of the Federal
Farm Board. An educational program
may have to be undertaken to expound
the principles of cooperative market
| ing and also to assure the co-operatives
good management.
In the informal conferences that have