Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-01-16
An Important Economic
Problem
(Editorial)

in Pine county today is the drop
in the price of butterfat-a product
that is the main source of income
of Pine county farmers. A splen-
did article Analysing the situation
was published in the last issue of
the Pine Poker and written by S.
A. Striegl, secretary of the Pine
City cooperative creamery. We
know it will be of interest to read
ers of the Askov American and are
therefore publishing said article in
this issue. We are also herewith
making a few remarks and sug-
gestions, some of our own and 9TH
ers gathered from the radio talk
given by A. ]. Mcclure, general
manager of the Land OLakes
Creameries, few days ago.
The cooperative creameries of
this county will soon have their
annual meetings. At these meet
ings it would be an excellent pro-
gram to sell the idea to all men,
bers to discontinue and discourage
the use of butter substitutes; also
for each creamery to appoint a
committee to work with the retail
stores in their community on a
friendly basis. and attempt to have
the sale of oleomargarine and other
butter substitutes discontinued.
The intelligent retailer in dairy
communities can very well see that
reduced buying power of his dairy
producing customers is going to
cut into his profits A large per-
centage of butter substitutes man
ufactured is used in rural COM
munities. The little saving made
by the farmer in purchasing oleo-
margarine for hi table use is
much more than offset by the loss
sustained in lower prices he re-
ceives for the larger quantities of
butterfat he sells. The use of SUBJ
stitutes has caused a surplus of
butter and consequently brought
down the price.
The newspapers Of Minnesota
and the Northwest generally, we
believe. will be glad to give space
for good articles regarding the
health value of butter, milk and
dairy products to both children
and adults, thus increasing the
consumption.
The dairy farmer, in order to
better control prices, must control
the merchandising machinery of
his product, and the best way he
can do this is by more thorough
organization, and more cooper
alive creameries joining the Land
O'Lakes association so as to be
stronger and in a superior position
to control the surplus. The sur
plus is about 35 million pounds of
butter today very small per-
centage of the yearly Output-yet
enough to deflate the price about
80 per cent. Butter on the New
York market is now 35c per pound
while a year ago it was 47c-a diff
ference of 12c per pound. Our
dairy farmer is not getting cost
of production at this price.
In his article Mr. Striegl also
mentions the McNary-Haugen bill.
We agree with him in his argu-
ment, only this bill was twice
passed by congress and twice We
toed by our past president, Calvin
Coolidge. President Hoover is also
opposed to it. At the present time
the L. S. senate under the leader
ship of the progressive group from
the Northwest, has been able to
inculcate the debenture plan into
the present senate farm bill 1t is
the best thing offered to date in
this session of congress to deal
with agricultural commodities of
which there is a surplus. 1t should
have the solid backing of the farm
ers and farming communities. An
other important item is a solution
of the tariff problem on imported
oils. especially from the tropical
countries-oils that are used in
the manufacture of butter substi-
tutes.
This matter is mighty impor-
tant problem to the farmers of Pine
county and all the communities in
the county. We will be pleased to
get constructive suggestions and
letters to be printed in the Amer
lean on the subject Our friends
and readers are people who have
a vital interest in the/price Of
butter and we will be glad to do
sur part in helping to get an in
1ellfgenf public opinion on this