Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-19
DEBENTURE Plan
DEBATED IN FORUM
Brookhart Urges Proposal in
Radio Address as Fort
Attacks It.
Continued From First Page.)

surplus alone, but VIII nave an eQuai
effect upon the whole domestic market
The benefit to the farmers will be about
10 times the amount of the debenture
In other words, If the debenture is
5000. 900. 900 the farmers will receive a
benefit of $4,000, 100000. This is less
than half of what they are justly en-
titled to receive"
His address follows in full:
The farm problem is the greatest
economic problem of our time, and yet
some people, mainly in Wall Street, say
there is no farm problem. HoSever,
here are the facts:
About one-third of the American peo-
pie are farmers. These farmers now
own less than one-fifth of the property
value of the country, and they are get
ting less than one-tenth of the ma
tional income
Since the deflation of agriculture in
1920 there are about sixty billions of
capital investment and about IL mil
lion workers, not counting women and
children. This capital and these work.
ers produce gross value Of about
twelve billion dollars.
There are about forty billions of CAPT.
tai in manufacturing, or only two-thirds
as much as in agriculture, and there
are fewer than nine million workers, or
fewer than three-fourthS as many as
in agriculture, but after deducting six
teen billion dollars for difference in raw
material costs, this smaller amount of
capital in manufacturing and smaller
number of workers produced a gross
value of forty-four billions, as against
twelve billions for agriculture. Since
labor got only eleven billions in wages
in manufacturing it is only fair to say
that high wages were not the cause of
this discrimination,
valued by the same rule as the farms,
the railroads are less than one-third of
agriculture and the number of workers
about one-seventh, but they produce a
gross revenue of more than half as
much as the farms, and again labor
gets only about one-half.
Farms Fell as Rail Stocks Scared.
Iowa lands went down over two and a
half billion dollars, and railroad stocks
went up more than that amount at the
same time. Iowa is only typical of all
the States, and railroad stocks are
only typical of the big stocks In general.
Recently brokers loans have passed
the six and one-third billion dollar
mark, or nearly one-third of the bank
deposits of the Federal Reserve Bank
members. Since 1920 these loans have
scarcely been below three billion dollars.
Until the last year this vast reserve of
surplus credit was accumulated at the
rate of about 4 per cent while the
farmers of the country were compelled
to pay 6 to IL per cent. Recently the
demands Of this speculative bubble have
become so great that it has raised the
rate as high as 20 per cent for call
money, and it has further increased
farm rates even in the Federal Land
Bank.
A National City Bank bulletin shows
that in 1925 the national banks Of the
country earned 8.34 per cent upon capt.
tai, surplus and undivided profits. The
National Industrial Conference Board
ture earned only IT per cent upon its
capital investment without adequate
allowance for labor or depreciation.
In 1926 the farmers of the United
States sold 41,000O00 hogs. In 1928
they sold 48,0O0.0O0. They got $780,
100000 less for the $4,000, 600 hogs than
they got two years previously for Al
100000. This in spite Of the fact that
the foreign demand was increasing:
that the number of hogs in Denmark
had been decreased 10 per cent. in the
United Kingdom 5 per cent, Germany
2 per cent and in the Netherlands 20
per cent. For a whole generation
farmers have received less total money
for big crop than for little one.
Farmers Get Small Return.
The public utilities as a whole are
earning more than z per cent and the
courts are allowing them that rate or
higher, while agriculture gets only IL
per cent, and that upon an unfair book
keeping.
Massachusetts has 3.69 per cent of
the population, produces 3.92 per cent
of the national wealth, but gets per
cent of the national income. New York
has 9.83 per cent of the population,
produces 9.81 per cent of the wealth,
but gets 1879 per cent of the national
income. Iowa has 2.27 per cent OF the
population, produces 3.48 per cent of
the wealth and gets only 1.99 per cent
of the national income. Again, Iowa is
only typical of the agricultural States
and Massachusetts, and New York are
only typical of the industrial States.
According to the Manufacturers
Record, the defation policy of the Fed
eral Reserve Bank reJuccd agricultural
values by S32,CO0,000,000 and other
business by only $4,000, 000. 600. This
means that agriculture was debated six
times as much in proportion as other
business.
Since 1920 farm lands have declined
nearly 20 billion dollars, while in in
yanced more than that amount.
The farmers of the United States re-
ceive about nine billion dollars for what
they sell, but the consumers pay over
30 billion dollars for it.
Since 1910 farm bankruptcies have
increased by more than 1000 per cent,
while commercial bankruptcies remain
about the same.
The direct causes oe - gig1nt. dis
r
criminaticn - u..h IA me II i laws CT
the CO -.sl. Upon the glre5 of Mr.
Ioover as Secretary OF c mnerce. since
1912 the American people. with all their
capital, all their labor, all increase in
property values and all depreciation of
the dollar, have produced only about 5l2
per cent a year of new wealth. If cap
ital got all the wealth production of the
country and it were evenly divided, it
would get only return of sig per cent
Capital, however, is not entitled TO al.
1t is, therefore, self-evident that when
any block of capital is permitted to dip
out more than sly por cent from thu
American pool some other block must
take 1ecs, or even nothing, to maintain
the level.
Agricultural Legislation Needed.
Notwithstanding this indisputahle
fact. we passed a railroad law that gave
them subsidy IN value OF over seven
billion dollars above their market value
as fal'ms are valued and gave them a
return, first per cent and now 5a4
per cent upon all this value, water and
all This dips an excess of some 400
million dollars from the American pool
of production. The other items of eX-
cess profits Of subsidiary corporations,
waste of competition and capitalization
OF unearned increment take out about
800 or 900 million dollars more each
year. And in addition to all of this, the
law guaranteed their wartime profits for
six months after they were turned back