Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1930-03-13
THE FEDERAL FARM BOARD
JUSTIFIES IT'S CREATIONS

That the Federal Farm Board is ~justfying its
creation is a generally accepted fact. During the re
cent crisis in the Wheat market, a collapse was mar
rowly averted by the buying activities OF its brain
child, the Grain Sterilization Corporation. That the
good ship Farm Relief w~eathered the storm is un-
usually creditable in view of the concentrated effort
of the grain trade to sink the ship. Such endeavor on
the part of the trade is not hard to understand. lnvar-
iablv. a howl is heard when someone's toes are step
ped on. The opposition was more dangerous in this IN
stance however, because of the unlimited credit eX-
tended to it by the big bankers who will share with
the grain trade the loss of fat profits for which the
farmer has been bled in the past.
Under the old system the farmer was forced to
nav an exhorbitant rate of interest to the private
concern for a loan on his grain. whereas, the Farmers
National Grain Corporation, through the cooperative
organizations, makes its loans at a rate OF interest not
exceeding more than So per cent 1t is only natural
therefore, that the banks ally themselves with the
grain trade in its struggle to retain its grip on the
pocket book of the farmer.
Within the last few days the Farm Board mas
issued two important orders. The frst retrlcted the
b,,vino of grain at the loan price by co-operatives to
members of cooperative organizations only Because
Of the present glut on the market such action cut OFT
the only channel through which private companies
conld sell their grain at a profit. Almost lmmedlatey
tbe Farmers Union Terminal Association and kindred
organizations received a deluge OF requests Tor mem
bership together with the necessary ices, especlahy
from elevators. These elevators were forced to take
srcb . sten to save themselves from bankruptcy. They
knew they could not repay private concerns with uhe
amount already borrowed plus interest, II tney were
to sell their grain at the cash market pr1ce. ny JON
irc a cooperative they could either sell to the Grain
Sterilization Corporation at a profit now, or receive d
loan and participate in a possible greater pront at a
later date.
In a statement covering the Wheat War made in
Washington. February 10th Senator Capper of Kansas
said at looks like a two-way attack. One by the gram
trade and its allies to brighten the business man and
the consumer. The other to persuade the farmers
that the Board is not acting in their interests.
"IJnder this situation, it is most unfortunate
that the country is being flooded with propagahua
from Chicago, Minneapolis, Kansas City, and other
grain centers-and from some financial interests
also-agaiast cooperative marketing ana especlaNs
against the grain do-operatlves."
Perhaps one of the most extraordinary OF THESE
efforts is the campaign being waged against the Can
adam Wheat Pool, evidenced by a recent article by
lanes f. Bowie, reprinted by that old time friend OF
all onnonents of the farmer, the Minneapolis Chamber
of Commerce"
"The Farm Board is composed of strong men
and they should be given every chance TO 1uhct'oh
They should have freedom of action
Sneaking before the Senate, Senator Gerald r.
Nve said "This is a crucial hour. Part OF the gram
trade is taking advantage Of every unfortunate natur-
al condition to stage an unprecedent bear raid on the
market hoping, to discredit the rederal rarm Doaiu
once and for all. The Farm Board is dong the rght
thing and doing it bravely. We cannot understand now
= tr,e friend of the farmers could do otherwise than
support the Board to the limit.
The entire success of this movement depends entirely
upon the dirt farmer and success means the placing
of agriculture on a basis of economic equality with
other industries.
The farmer can secure a greater cash advance
in the form of a loan at Farm Board stabilized prices
than he can receive by selling for cash. In addition
tbrouyh the farm storage law passed in North Da-
kota and Montana, he can secure SAID loan ana SUI
keep his grain away from the ini"ai '"eieo
avoiding a glut on the market.
AS stated in the Farmers Union Herald "Yol
can borrow more money with all costs, storage, inter
est. handling charges and freight taken out than you
can get on a cash sale at your elevator. a cash az
vance or loan is really a conditional SAFE. IL is
guaranteed price at delivery time, you to get the IN
crease if the price, at the time OF delivery is hlgne
than the stabilized or loan price"
In recent days the Farm Board resclnded 1t
restricted buvine order. 1t will no longer buy Whea
at Farm Board loan prices. Chairman Legge explain
ed the cash purchases of Wheat at the Farm Boar
nrices were causing a rush of Wheat terminal Mar
kets. conResting them and placing the Wheat OF Mort
America in the show windows of the world for buy
ers tn gaze on and removing the stocks Of reserve fror
the farms.
However, the local elevators are still face
with a loss by selling on the open market and to saw
themselves they must acquire membership IN some &C
onarat;va organization such as the Farmers Unio
Terminal Association,
The Farmers Union Herald also states "El'
yator Associations which are member of the Farmer
Union Terminal Association are by such membershi
hooked up with the Farmers National Grain Corpor
ton and the Sterilization Corporation. Such elevate
associations are protected, and may make quick az
;rs+mor+o to changes in plans or rules because the