Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1929-07-31

IlOL. OI1IC 1lG ID COllt41lLCQ l4ldJ IL ID
operating in his interest.
Il hope that each and every one
Of you will study the law itself SO
you may have a better understand
ing of what it is we are expected to
do. In it you will find many sug-
gestions as to things that might he
done to help you cooperate. You
will not find anywhere any sugge5-
ton that government money should
be spent for the purpose of stimu-
lating competition among your
selves. In many Of the commod-
ity groups there is a marked di-
vergence of opinion as to how the
problem should be worked out, ana
agencies have been set up tackling
it from different angles.
These should find some common
ground on which to get together
and pull together for the common
cause.
Permanent Program Studied
1.-THE board is considering this as
a longtime constructive program
rather than simply of dealing
with emergencies. If we confine
our efforts to dealing with those in
distress, the probabilities are we will
find little time to remove the cause
of the distress, which after all is
the more satisfactory solution. We
realize keenly the necessity Of
prompt and adequate assistance,
but we realize equally keenly that
any action which the board takes
must be sound and for the perma-
nent betterment of agriculture.
Some of you will say that we
have not mentioned sterilization
corporations. 1t seems to me that
it may we'll happen that the CO.
operatives now in existence, or i'm
proved organizations growing out of
existing cooperative organizations,
may prove to be all that is needed
to carry out the idea of Stabiliza-
ton corporations. There may prove
to be extreme cases which call for
measures that can not be carried
out by the cooperatives, but it Is
hoped that correction of the fun
dar1ental causes of agricultural
emergencies will enable the board
to consistently carry forward a
program based on the development
Of large, well-financed and eff
GENTLY managed cooperative organi-
cations.
The funds entrusted to the care
of the board will be administered
for the purpose Of carrying out its
program of which the central
thought will be the strengthening
of the cooperative movement, and
the permanent betterment Of
farm conditions. In the financing
Of plants and facilities for coopera-
tive organizations, and in other
ways, the board can be of material
assistance. Lack of adequate fl
nances has been n Of the handi-
caps Of the cooperative movement.
Il think it proper, however, to
inject a note of warning at this
point. 1t should be obvious that
the cooperative movement can be
weakened and a large financial bur
den imposed upon it by unSound in
v~eStfnentS. Therefore, money Dor
roWed from the board for the acqui-
sition Of facilities must be invested
wisely and frugally. This is essen
tial in order to safeguard the flu
ture of agricultural cooperation.
The act wisely provides that money
shall not be loaned to build new
plants or facilities where Satisfac-
tory facilities are already available.
Money certainly will not be loaned
to purchase obsolete or Inadequate
facilities. Certainly loans will not
be made to acquire plants and ia
cilities at prices greater than their
value to the associations making
such purchases. AS a matter OF
fact, it is expected that the farm
erS' organizations will drive hard
bargains, having in mind ALWAYS
their responsibility to safeguard the
investments of their members and
provide economical and efficient
facilities for marketing their pro-
ducts.
Board Can't Raise Prices
There are many people who
think that the boards activities
should be directed to the arbitrary
raising of the price level for agri-
cultural products. The board can
not raise prices arbitrarily. Prices,
as has been said many times, are
determined by basic economic con-
dltlons-by the demand for a COM
modify, the supply available to meet
that demand and the manner in
which the supply. is fed to the mar
ket. What the board hopes to do
is to assist farmers to become better
able to compete with other O
IN the markets Of the nation and
the world. 1t expects by aiding in
the development of c~ooperativs
associations to make possible como
mics in marketing and stabilized
marketing conditions, and to assist
farmers to obtain their Just share
OF the national income.
The effect of all activities of the
federal farm board on production
must be carefully considered. The
result would be only a vicious cir
Gle, If the work Of the board should