The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-12-15
AAA Has Added to
Farmers Burden,
Wallace A d its

obviate 1t permanently. Manfestls
the issue is Of supreme Importance
to agriculture, which remains one OF
our principal exporting industries. II
will probably be necessary, IN any
event, to count on some permanent
reduction in the export demand for
agricultural products; but how large
the necessary reduction viii be, de-
ponds greatly on our tariff policy
We cannot go on selling abroad WITH
out buying abroad"
Wallace admits that under the
Roosevelt program the farmer has
had to pay relatively much more for
what ~ Ought than Whist nc re-
ceived Tor his products.
Farm commodity prices frcn
mid March to mid October rose Al
per cent. There was not 50 great
gain, only ~ per cent, In the
exchange value of farm products,
because prices paid by farmers ad-.
vanced considerably"
He also admits that the National
Recovery Act has been the means Of
raising prices to the worker-cos1sSnner
way out Of proportion TO even the
nominal raise in wages.
There has been some tendency.
for manufacturers and business
groups to pyramid increased costs
in consumers' prices. Many COM
mcditieS are selling today at prices
much higher than would be neces-..
sary TO meet the expense involved.
In raising wages and shortening
hours"
Agriculture has no quarrel with
science, Wallace declares. ut is es-
sentially a problem Of distribution, .
his report says, without suggesting
any fundamental solution And there
he stops. I'VE have SURPRISES, in IN
dustry as well as In agriculture,
largely because the laws that govern
the distribution Of income cause 8
polarization Of wealth and poverty
a piling up of purchasing power at
enc end Of the social scale. In con-
sequence majority Of the people
spend all their money before they
have satisfied their wants, while e
minority satisfy their wants long be-
fore they have spent their money
There results an unemployed block OF
purchasing power which tends TO be
transformed into capital and TO g.
back into production instead Of en-
tering the market for consumable
goods. This makes the surplus stu
alton worse" And there he stops
Protect Profits
Wallace admits the oft repeated
charge Of the militant farmers thai
the processing taxes are protecting
distributors profits. Public hear
ings and investigations have revealed
instances Of excessive distribution
charges, collision Of producers anc
distributors, control from superior
ganizations, and even 'rackets' Of on
form or another.
Large daily corporations have moi
shared with the producers and con-
sumers the major advantages thai
/ they have had from large scale oper-
alton and resulting lower operating
costs. These advantages insteas
have been reflected In large execu-
tive salaries and IN liberal stock diTi-
dends on capitalizations that toe
| frequently do not rest upon intrinsic
values in plant and equipment"
Great Increase Of Farm Debts
Total farm indebtedness in 1875
exceeded $4,000, Ooo, 900, according tt
Wallace. by 1882 the mortgage In
debtedness had been reduced Il
about $500 100000, and the total o.
other forms Of farm Indebtedness hat
been reduced also. Ordinarily, 8 re
duction Of Indebtedness IS a favorable
sign, an indication that debtors art
improving their financial position
Sometimes, however, It Is an unfayor-
able sign. This is, in large part, the
case with the decline of farm in
debtedness IN this country since 1928
It is largely result, not of norma.
liquidation, but of foreclosures, bank.
rrptcies, and forced sales, and Of the
inability Of local banks and Other
credit agencies to lend. Forced sale
in 1882 constituted 81 per cent o.
all transfers, as compared with n
per cent in 1928. Moreover, the re-
duced carrying charge represents this
year a much greater proportion Of
the gross farm income than did TIT
larger payments in 1928. Mortgage
carrying charges alone win take this
year something like IS per cent O
the gross farm income"
Secretary Wallace says nothing
about cancelling the farmers mort
cages. However, he endorses con
trolled imitation as means Of pro.
noting social Justice through &
fairer distribution OF national IN
] come"