Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-02

| NOOHb1IuSQ EAOul ElI0J EdR6.J
Board had not gone into the market
last November and bought wheat, there
by stemming the decline in the price,
wheat might have gone 10 or 20 cents
| lower than 1t did. Had wheat gone q
| little lower, hundreds of banks would
have failed In the Middle West and
the Northwest that did not fail, with
disastrous effect not alone on these
| banks and the farmers Of the West, but
on business generally throughout the
country.
Loss May Be Averted.
IF you figure the loss which may
| accrue en- the boards purchases Of
wheat at $4,000, o00--and the loss may
be avoided yet in large part if not alto
gether-at the same time you must
| figure the gain to the farmers and to
the country at SI00,000,000 or more, {"
said Chairman Stone. There has never
been time when would not be will
ing to swap $50,00o,000 for q $780,
900 000"
The chairman said that his figures
for loss and gain were merely picked to
illustrate his point. AS a matter of
| fact, the Farm Board has never an
nounced the extent of its purchases of
put into those purchases. The esti-
mates OF 100000 to 100000 900
bushels, supposed to have been pur-
chased by the board, he pointed out,
are mere estimates made by Senator
| Borah and others. The board is not
announcing these figures.
Mr.. Stone. who delivered addresses
in Hutchinson, Kans., and Enid, Okla,
and who met also with many farmers
hYac -
said that he found the farmers realized
that the effort Of the board to stabilize
prices of wheat by purchases of the
1880 crop had been an emergency
measure. He said, too, that there was
not that criticism of the boards an
nouncement it planned to make no
purchases of the 1881 wheat crop which
had been voiced by some of the boards
critics in the East.
Chairman stone believes that the
world conditions, so far as the wheat
market is concerned, may give the
American wheat farmer better break"
than he had last year Certainly he is
of the opinion that if the American
farmers will use discretion in planting
wheat this year he stands a better
chance Of getting q higher price for
his crop.
Holdings Not Menace"
With regard to the criticism Of the
Farm Board in connection with its pur-
chase of wheat Of the 1880 crop, Mr.
Stone points out that If this wheat had
not been bought and held by the board,
it would now be in the hands of some
one else, either farmers or buyers.
He says that the total amount of
wheat was not increased by the pur-
chaSes Of the board; that consumption
of wheat, because of the low prices
which have prevailed for wheat and
wheat products during the last year has
been IS great as 1t conceivably could
have been. He sees no good reason,
therefore, for making out the holdings
of wheat by the Farm Board to be a
menace" II the same wheat was held
by another agency or by the growers
themselves, 1t would be just as much
Of a menace, he contends.
Toe real purpose Of the organization
of the Federal Farm Beard and the en-
actment of the law under which 1t oper-
ates frequently is lost sight Of, Mr.,
Stone says. The title Of the act is the
agricultural marketing act, and its pur-
pose is to aid the farmers, acting COL
lectively to control their own industry
The chairman insists that the act has
given a great impetus to cooperation
on the part Of the farmers. Until the
farmers have q great measure of CO.
operation they cannot hope to have a
real voice in the price that shall be paid
for their produce. When they really
cooperate, they will control not only
price, but to considerable extent, pro-
duction, which, itself governs prices.
Since July /, 1890" Mr.. Stone points
out, "the Farmers National Grain Cor
poration has handled more than no.
900 900 bushels Of grain. It has become
the largest grain marketing agency IN
the United States. In addition to this
huge amount Of grain, the member
co-cperatives Of the Farmers National
Grain Corporation have handled many
millions Of bushels.
Benefits for Farmers.
The Farmers National" as the cor
poration has come to be called, is a
chandising grain through the regular
channels and securing for its members
all the benefits and profits that accrue
from warehousing, improving the grain
and merchandising.
Mr. Stone believes that through the
Farmers National the farmers have
received real benefits. He believes that
such an agency, buying and selling
grain in the interest of the grower,
price Of wheat and other grains, keeping
| that price higher than it would other
wise be. This corporation, which has
/ been set UP with the aid of the Farm
Board, by the co-operatives themselves,
buys grain and sells 1t as high as the
conditions can possibly warrant. This
is very different thing from con-
Fcern that Is intent upon buying as
cheaply and selling as dearly as 1t can.
Room for Grain Trader.
| grain trade as 1t has existed in the
past, can live alongside Of the Farmers
| National" and the co-operatives. His
| reply was to the effect that there is
room for the grain traders who ham
| die their business efficiently and with
! regard to the needs of the producers.
| He intimated that those traders who
! did not so handle their business would
/ have to go by the board.
/ The purpose of the Farm Board and
| the agricultural marketing act, ac-
| cording to Mr.. Stone. is not to put the
| Government in business as 1t has been
charged by their enemies, but to put
/ the farmers in business This can be
done through the co-operatives, and
| through their own agents such as the
J Farmers National Grain Corporation.
The farmer is supicious," says the
chairman. He is inclined to believe
only one Of his own. When he owns
his cooperative and his marketing
agency. a very different situation Is
| presented and the farmer will listen 70
advice about acreage and marketing
which he is not now willing, in many
cases to do"
Adjust Production Downward.
The only really effective plan for the
wheat growers of America, II they are
not to get prices pretty closely in line
with the prices which American surplus
wheat is sold for in Europe, is to adjust
production gradually downward to a
domestic market basis, in the view of