Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-01
sSTABHIZING AGRICULTURE
IS SMITHS FORUM TOPIC
South Carolina Senator Discusses Prob
lens of Farmers Needs in
Address Over Radio.

over a cOaSt-to-cOaSt network of the
Columbia Broadcasting System, follows
The condition of agriculture through
out the United States has been for the
last several years so depressed that II
has become perhaps the most vital prob
lem confronting the American people
today. The return for farm products
the price per unit of farm products was
90 out of line with the prices of indus
trial products that it has led to ma
tional disaster. Farm mortgages and
the foreclosure of farm mortgages are
universal The current value of farm
land has shrunk in proportion to the
value of the products of the land In
q word, the purchasing power of the
farmer has vanished with the collapse
Of the value of his land and its products.
So manifest was this condition, that
the two great political parties, both
Democrat and Republican. in their plat
forms of 1923 pledged themselves to the
study of and relief from this condi-
ton. In pursuance of this pledge on
the part of the Republican party, the
President called an extraordinary ses-
sion of Congress in 1929 to deal with
this problem. AS a result Of this eX-
traordinary session, there was enacted
into law what is known as the Federal
farm marketing act which was ap-
proved June Is. 1929 I quote its
Q6CldIaIlCn OF pOnCy.
Declaration of Policy.
"Section l. Ca) That it is hereby
declared to be the policy of Congress
to promote the effective merchandising
Of agricultural commodities in inter
state and foreign commerce, so that the
industry of agriculture will be placed On
q basic of economic equality with other
Industries. and to that end to protect.
control and stabilize the currents of in
terstate and foreign commerce in the
marketing of agricultural commodities
and their food products
I'D BY minimizing speculation.
"(2) BY preventing inefficient and
wasteful methods of distribution.
"(3) BY encouraging the organization
of producers into effective associations
or corporations under their own control
for greater unity Of effort in marketing
and by promoting the establishment
and financing of a farm marketing svs-
TEN of producer-owned and producer
controlled cooperative associations and
other agencies.
80 BY aiding in preventing and con-
trolling SURPRISES in any agricultural
commodity, through orderly production
and distribution. so as to maintain ad-
vantageous domestic markets and PEE
vent such SURPRISES from causing undue
and excessive fluctuations or depressions
In prices for the commodity.
"(b) There shall be considered as a
surplus for the purposes of this act any
seasonal or years total surplus, pro-
duoed in the United States and either
local or national in extent, that is IN
excess of the requirements for the or
DERBY distribution of the agricultural
commodity or Is in excess of the do
mestic requirements for such COM
modify
"(c) The Federal Farm Board shall
execute the powers vested in 1t by this
act only in such manner as will, in the
Judgment of the board, aid to the full
est practicable extent in carrying out
the policy above declared"
Represent Farm Products.
The Federal Farm Board consists of
eight members, these members to rep
resent as near as may be the major
staple agriculture products. In the
declaration Of policy. paragraph 4, oc-
ours the following language:
go BY aiding in preventing and
controlling SURPRISES in any agricultural
commodity, through orderly production
and distribution, so as to maintain adj
vantageous domestic markets and pre-
vent such surpluses from causing un-
due and excessive fluctuations or depres-
sions in prices for the commodity"
This paragraph, together with sub
division B are the pertinent ones to
the subject that 1 will discuss tonight.
THE Control of the Surplus" I shall
quote subdivision B of the act:
"(b) There shall be considered as
surplus for the purposes of this act any
seasonal or years fetal surplus, pro-
duced in the United States and either
local or national in extent, that is in
excess of the requirements for the or
derby distribution of the agricultural
commodity or is in excess of the domeS-
tic requirements for such commodity"
It will be seen that Congress and the
students Of this question recognize the
disastrous effect of any seasonal over
production. This. of course, is the prime
element in the solution Of the agricul-
tural problem. shall devote my dis
cussion to the question Of the produce
ton and distribution of American cot
ton. The consumption of cotton is
perennial. The production Of cotton is
annual The consumption of cotton
goes on continuously. The production
Of cotton is not only annual but Is
subject to seasonal conditions. One
year on the same acreage, a large crop
may be produced, creating for that par
ticular period an excess supply for the
temporary demand. This has disas-
trous effect upon the price of the entire
years crop. The farmer, being unor-
ganized and without reserve financial
power, must sell his entire years pro-
duction as rapidly as gathered in order
to meet the obligations incurred in its
production If the crop is large, this
temporary excess production, Of course,
has a disastrous effect. 1t was to meet
this very condition that the Federal
farm marketing act was created. Sec
ton of TIE act provides for stabiliZa-
ton corporations. quote subdivision l
Of this section, also subdivision D:
Provides Marketing Agency.
"Q) If the board finds that the mar
keting situation with respect to the ag-
ricultural commodity requires or may
require the establishment of a stabiliza-
ton corporation in order effectively 10
carry out the policy declared in sec
ton /
"Cb) Any sterilization corporation
for an agricultural commodity % may
act as a marketing agency for its stock
holders or members in preparing,
handling storing, processing and mer-
chandizing for their account any guam
tity of the agricultural commodity or
its food products, and 20 for the pur-
pose Of controlling any surplus in the
commodity in furtnerance of the policy
declared in section !, may prepare, pur-
chase. handle, store. process and mer-
chandize, otherwise than for the account
OF its stockholders or members, any
quantity of the agricultural commodity
or its food products, whether or not
such commodity or products are ac-
qlired from its stockholders or mem
bers"
In other words, whenever it shall be
determined that there is surplus of
such magnitude as to seriously jeop-
ardize the profitable marketing for the
producer of product, the sterilization
corporation may enter the market and
purchase such an amount as in It's
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