The Wolf Point herald. (Wolf Point, Mont.) 1913-1940, 1930-02-28
EXPLAINS AIM
OF FARM BOARD
TO ADMINISTER MARKETING
ACT AND MAKE LOANS;
PROTECT CO-OPS

The Federal Farm board is not
an institution to make profits or
sustain losses in marketing or
merchandising activities. It's only
function is that Of administering
the Agricultural Marketing Act.
Gains or losses accruing through
the buying of wheat and durum
at the basic guaranteed price Of
slips per bushel for No. l North
ern, Minneapolis, and SLIP per
bushel for No. 1 Durum, Duluth,
are on the account Of the Farm
ers National Grain corporation.
The Grain corporation is entirely
owned by cooperative marketing
associations as stockholders there
of. so in the end the gains or
losses, in carrying on business
basis the government price, are
on the account of the cooperative
marketing associations.
Further, the Federal Farm
board will not sustain any losses
or make any gains arising out of
sterilization loans to farmers on
grain stored on the farm or in
country elevators. All of these
loans have been made basis $1.25
for No. 1 Northern, Minneapolis,
and SLIP for No. 1 Durum, Du-
luth. Our cooperative association
has made loans on this guaran-
teed basis, making deductions for
freight charges and eight cents
Der bushel for interest and other
charges.
Chairman Legge and Governor
McKelvie made the statement to
the directors of the Farmers Ma
tional Grain corporation that rea-
sonable means, within the pro-
visions of the Agricultural Mark
citing Act, would be used to pro-
tect all the cooperatives against
any losses arising out of stabil-
ization efforts.
The Wheat Advisory Committee
is in Chicago at this time work
ing out plans for setting up a
sterilization corporation Tin ac-
cordance with the provisions Of
the Marketing Act to take over
the sterilization efforts made to
date and to carry on such furth-
er effort as may, in the commit
tees judgment, meet the present
emergency which finds wheat fu-
ture prices less than the govern
ment prices.
This price d%ifferential between
wheat futures and the ~so-called
government price cannot continue
Indefinitely. Eventually they will
come together, either the future
price will come up to $1.25 basis
the guaranteed price must fall
below SIPS. In the latter event,
the Farm board, Farmers Nation
al Grain corporation, and such CO.
operatives as ourselves will have
proven unequal to the task of
stabilizing the market-we will be
licked. Back of us and our sta
bilized price, however, is the Ag-
ricultural Marketing Act with al
most unlimited authority vested
in the Farm board and with an
appropriation of one-half billion
dollars for carrying out plans for
e+ob;I;7ipr +ba morxat Na arn
confident of victory in this battle {
to hold up prices for grain grow
ers, and certainly all thinking
people will back the efforts of !
the Farm board and the cooper
atives.
The Farmers Union Terminal
association will suffer no losses
through the loans made to date;
we know the sterilization corpor-
alton will take them over. ]
We will continue to make loans
to farmers On grain stored in ]
country elevators in North Dako-
ia, South Dakota, Minnesota, and
Montana, and on farm stored I
grain in North Dakota and Mon
tana. The basis of the loans will !
be the same Farm board price as
heretofore-basis $1.25 for No. 1 \
Northern, Minneapolis, and SLIP \
for No. 1 Durum, Duluth, subject {
to the deductions outlined below. {
Loans {
Deductions in connection with {
loans made on grain stored in c
country elevators:- c
1. Freight from country point F
to terminal market. F
2. Storage charges from date F
ticket was issued to June 80, 1880. F
8. Interest from date of loan F
to June 80, 1880. F
a. Handling charges to be paid F
to country elevator-9h cents per S
bushel. S
5. One cent per bushel to cover S
overhead expense of our Farmers S
Union Terminal association. S
6. Three-quarter cent per bushel 7
when storage tickets are issued I
by elevators which do not ship V
10 the Terminal association. '
Refunds. When the farmers '
osn IS liquidated prior to June 2
%. 1890, a refund will be issued 2
or storage and interest for the 2
.nelapaed time UP to June 80,
$50