The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1932-01-08
Low FARM PRICES
Due TO CHAOS OF
CAPITALIST CRISIS
FARM BOARD ECONOMIST is
FORCED TO ADMIT GROWTH
OF SOVIET COLLECTIVES

Farm Economic Federation on De.
cember 20, Mordecai Ezekiel, as,
sistant chief economist of the
Federal Farm Board, admitted
that the present chaos of capital.
ism will mean a continuance Of
the narrowing of the markets fol
American farm products.
He pointed to the tariff restric-
tons which have been introduced
as result of the decline in pric'
es and as the result of the sus-
pension of the gold standard by
many capitalist countries. In each
of the capitalist countries tariff
and embargo restrictions have
been placed on agricultural pro-
ducts in order to protect their big
landowners, bankers and speculat-
ors from the effects of cheap
wheat. While the masses OF
workers are in dire want they
have raised the price of wheat
and other agricultural products to
save capitalist profits. Just as
the tariff makes the prices Of al
products in the United States Sc
high that millions of toilers must
suffer because they cannot buy al
these outrageous prices.
Before restrictions on wheat
trading went into effect, wheat
prices in Europe were general
" in line with the Liverpool
market. Now prices are general
" maintained well above Liv-
erpOOl-slightly above in the ex-
porting countries; materially a
bOve, in importing countries. In
most European countries, wheat
prices per bushel are now 75c
to 81 above the world market
price. AS a consequence, low
world market prices from over
production have not served to
reduce European production. Ov-
erseas exporting countries, too,
are helping their own wheat
producers"
He is forced to admit that Will
this chaos exists in the capitals
countries the building of socialism
in the Soviet Union under a plan
ned economy is the building of
''new economic system"
Russia requires separate
treatment. Communism is or
ganizing constantly increasing
proportion of economic activity
on the lines of a painful state
socialism. In addition, it is in
PRODUCING applied science gener-
ally in what previously was a
semi-medieval country. Russia
is attempting the task of remak-
ing a people, as well as build
ing a new economic system"
He is forced to admit, indirect
" that the Soviet Union has soil
its raw materials not because
wanted to but because it was fore
ed, in the absence of credits from
the capitalist countries, to use it
valuable raw materials as a mean
of paying for the vast amounts o
machinery it has imported 70
the development of socialist indus
try under the Five Year Plan.
'In spite of industrial pro-
gress, the U. S. S. r. is still pri-
marily producer of raw. mater
iaIs," he continued. ''Wheat,
lumber and oil must pay for the
equipment and other industrial
products she needs. She stiIl
requires vast quantities of capt.
tai, goods and much technical
assistance"
The rapid development of tn
collective farms from the indiviC
ual inefficient peasant holding
has already met with tremendou
success, such success that even tn
economist of the bankers Fedora
Farm Board must admit it.
'The collective farms are the
key to future agricultural pro-
gress in Russia. This year they
operated over half of all cult
waited land. With the weather
against them, it is perhaps sur
prising they did even as well as
they seem to have done, after
the drastic change from individ.
ual peasant farming"
For Mr.. Ezekiel it may, PEI
haps, be surprising" that theS
tremendous gainst have been
chieved in agriculture in the 81
Wet Union-since his experienr
has been with agriculture und,
decaying capitalism in the Unite
States. For the toiling masses
the world it is not surprising
these are the fruits of proletaria
toll under a workers and farmer
government.
To the American farmers
says:
Competition on foreign mar
kets will continue keen. Sever,
restrictions on trade may con
tinue or increase so long al
prices remain low or declining
This means in few words tn