Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-01
|STONE DEFENDS
| BOARDS ACTIVITY
Tells C. of C. Emergency Sta
biIization Cannot Cope With
0verproduction.
BY the Associated Press.

By the Associated Press. -....
ATLANTIC CITY, N. j., May L.
James C. Stone, chairman of the Fed
eral Farm Board, told the United States
Chamber of Commerce today that emer-
gency sterilization activities OF the
board cannot cope successfully with
continuous overproduction and can be
resorted to only as temporary remedies.
The board, Stone asserted, believes It's
sterilization operations in cotton and
wheat have been fully justified by the
serious emergency that faced agrtcul-
ture" as a result of the stock market
crash in 1929. Losses that may be sus-
tanned by the revolving fund, he said,
will be inconsequentlal compared 10
the benefits"
He told more than $500 delegates to
the nineteenth annual meeting of the
chamber that the gradually growing
antagonism between farmers and indus
try was largely due ito lack OF under
standing" The Farm Board. ne SAID,
was attempting to lessen this breach.
Farmers, he declared. were the most
potential buyers of industrial products
and I'VE believe the time has come
when the rest of the country cannot
hope fer prosperity unless they
share it."
"In accordance with law" stone
said. sterilization operations both d.
rect and indirect were undertaken IN
two commodities, cotton and wheat, as
a result of the stock market crash IN
the Fall of 1929. They were INTENDED
to help protect the farmers market Tor
his products from extremely SeSaous
consequences that threatened as re-
suit of the world wide business de-
preston In the past two crop years
our farmers have received direct pene-
fits from these sterilization operations
and. in addition, the country as .
whole, particularly banks ana business
men of the agricultural sections, re-
ceived very great indirect benefits. the
hoard believes what was done to have
been fully justified by the serious
emergency that faced agriculture. ANY
losses that may be sustained ey the
revolving fund from these operations
will be inconsequential compared 70
the benefits to our people.
Observes Rules Of Trade.
Using the Farmers National Grain
CORPORATION as an illustration OF tine
service performed by the nalonal CO
operatives, Chairman stone expialneo
that the corporation operates IN COM
nefition with and under the same rules
and regulations as other grain mer-
chants It buys in the open competitive
market from its members every Gay tne
grain they want to sell, or IL receives
The grain from its members ana sels
it at the best price obtanable on
commission basis. ~.
"There is, however, q distinct OIL
freence between the objective OF the
Farmers National and that OF any
other grain merchants. The grain
merchant naturally tries to buy Ms
Grain as cheaply as he can and sell az
high as he can for the purpose OF max
ing as much money as possible, Wnlcn
no one can object to. The Farmers
National. however, bids for its members
grain as high a price as 1t possibly can
TO enable it to sell the grain Wltnou1
loss, plus the normal ices, hanolLIis
charges and commissions.
Has Influenced Price.
although the average price OF grain
has been low during the past season, IL
is NV belief that its influence has III
creased the price OF grain Tor al
growers at least to 10 cents per
bushel over what they would nave re-
ceiyed if the farmers national mad not
been operating.
of money by the Farm Board, Nj.
Stone said such loans were absolutely
necessary because of the dimcuIty CO.
operative associations experience III
obtaining necessary credits.
II might say at this point, however,
that it has been the policy of the Farm
Board to encourage all co-operatives 70
use the commercial banks and Feoerai
intermediate Credit Banks to the 1uil-
est extent, and a large part OF the
u he 10 RnArn
been supplemental TO loans opIaineo
from these sources"
CORPORATION farming, Mr.. Stone heid.
is not the remedy for farm Ills. 40
not think" he said, that 1t Is wise TO
advocate any system which viii tend TO
eliminate the individual farm unit,
which. if done, would seriously affect
the rural life of our country. the
same results sought by corporation mass
farming can be obtained through CO.
operatives, he declared.
Other Talks Scheduled.
Other addresses today include "a
New Slant on Present Day Farm
ing" by F. E. Murphy, publisher
of the Minneapolis Tribune; discus
sion of our land policy by Harper Sib-
lev manager of farms in many States:
a discussion of capital gains and Fed
eraI income tax. by Thomas A. Adams
~ Yale University, and Thinking
Ahead for Canada" by George c. Nc
Americas responsibility and its OPP
portunity' was the title OF an ADDRESS
to be delivered by julius Barnes, chair
man Of the Board of the Chamber,
tonight.
Farming and Politics.
In the opinion of Mr.. Murphy. good
farming is doing a better job than any
'spolitical hokuS pokus" in making the
Northwest "a land flowing with milk
and honey and ~money."
Mr.. Murphy said there were no real
hard times" in "our land OF the kline
and the swine, the lamb and the ham,
the wool and the bull, the honey bee
and the hennery-the cream pitcher OF
America"
He said it was principally in grain or
cotton districts, single crop regions,
that the wall of distress Is long and
loud
RAW materials of agriculture or in
dustry always flSctuate violently-tall
farthest in times of stress" Mr.. Murphy
said. But when we fabricate raw ma
terials. make finished product in
factory or farm, we begin to stabilize
both the price and the industry. When
we aid the farmer to market his feeds
and grains in the form of finished pro-
ducts, butter, eggs. chickens, beef or
pork on the hoof, We stabilize business"
Sow Paths to Prosperity"
He told the convention that "a new
agriculture is born" when farmers and
businessmen really get together" which