The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-02-18
Burleigh Farmers
Told How to Link
Up j.. Cooperation
CONTINUED from page one)

futures Snall be eliminated.
These things must be accomplished,
said the former governor, because. as
the situation exists It is a matter Of
evolution against revolution. I'VE
must recognize this as q movement
to build, build, build" he said. we
have come to the point where it is
Q choice between evolution or ulti-
mate revolution. Unless we get the
former. we will get the latter. If we
get the latter 1t is the farmer who will
reap the suffering"
Introduced BY Shafer
The meeting was brought under
way by G.. F. Monroe. state extension
leader from the Agricultural college,
Fargo. who made the Introductory fe-
marks bringing the gathering to or
der. He called on Governor George
F. Shafer to introduce the speaker.
Then Mr. McKelvie plunged at once
into his subject. He spoke before the
microphone and his remarks were
broadcast ove the wide area served
by station KFYR.
Announcing that he had reduced
two Of his statements to typed form
to avoid any misunderstanding, the
former governor read these. One
dealt with the process of uniting with
the cooperative bodies through which
the farm board operates in its a
keting and exclusively so in its loans
from the $500, 600, 900 revolving fund
placed at its disposal for stabilizing
farm product marketing. the other
argued the wisdom of systematizing
marketing so as to eliminate specu-
lation.
The Importance of eliminating
speculation vas stressed in q declara-
ton that 1t involves tremendous harm
and loss to the farmer and for that
reason 1t has been dealt with In the
farm relief law.
Speculation Sentenced To Go
The agricultural marketing act"
said Mr.. McKelvie, says that specu-
lation In marketing agricultural COM
modities and their food products shall
be minimiccd. This is not a request.
It Is a command" He continued:
"Twenty-fiv times the annual
production Of wheat Is dealt in an
nually. This indicates the vast ex-
tent to which speculation exists in a
single commodity and l insist that
much Of that speculation is harmful.
At least 40 per cent of this business
is pure speculation by so-called small
investors-the public-and the COM
mission on that 5000. 600, 900 bushels
Of speculative trading is not less than
$50. 00o. 1000.
Nearly all of these SPECTATORS lose
their margin soonc or later. and that
amounts to many times the commits
sions. Probably $500, 600 900 would
not cover these losses annually. So
that, all In all. the total speculative
cost plus loss runs upwards of Is cents
per bushel on each years crop. I hold
that that comes out of the pocket OF
the wheat farmer eventually for it is
a part of the cost of maintaining our
present marketing system.
Coming To Controlled Marketing
What price speculation:
Those engaged in legitimate trad
ing insist that they stay "shy" of the
speculative side of the market. They
take pride in saying this, and proper
ly so! but in so saying they admit its
hazards to say nothing Of its cost and
must recede from a position taken by
some that speculation is necessary to
stable pr economical marketing. The
legitimate buyer who wishes to take
delivery at a similar future date may
easily get together without all this
ma efA ond Ices II, r,,yo cnar,,lofSov
And when that time comes market
reports will be based upon more facts
and fewer wild predictions.
1.-THE federal farm board proposes
to hasten the day of wholly legitimate
trading In farm commodities by pro-
noting a farmer owned, farmer.con-
trolled marketing system whereby the
natural laws of supply and demand
will have free play based upon the
best information available through
out the producing and consuming
world"
Getting I'm Touch
After the former governor had ex-
banded this idea of orderly market
ing. he went into the matter of ef-
fccting cooperation on nation wide
scale. 1.-THE subject uppermost In the
minds Of farmers" he said, "is how
they may take advantage of the agri-
cultural marketing act. The first
step Is to join q cooperative that deals
In a specific commodity, such as
grain. Membership in q local eleva-
tor or some local marketing unit is
sufficient. A marketing agreement
with some larger unit such as a pool
or terminal sales agency also fills the
requirement. Membership in q gen.
eral farm organization is not neces-
sary.
There are over 1000 farmers eleva-
tors in this country" he continued.
Largely they are cooperative and
meet the requirements Of the Capper-
volstead act: That Is. they are farm
crowned and farmer controlled, pay
not more than 8 per cent on their
capital stock and allow patronage
dividends, or permit but one vote per
member, and do no more business for
non-members than members. These
in addition to pools and other COM
modify sales agencies formed into
larger groups constitute the basis
ssrocS w,hSrh <ha Esavuncrsc Not1owol