The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-22
AAA SEEKS To
. AID CONSUMERS
AND FARMERS
Professor and Distributor
Profits Are Problem,
Report Shows.

WASHINGTON. Dec. 21-The
regulation of the margins-or
profltS-of professors and distribu-
tors is requisite Of farm relief and
an aim Of the Agricultural Adjust
ment administration. Secretary
Henry A. Wallace's annual report
shows.
This problem, important TO NRA
as well as to triple A, is discussed
by Secretary Wallace in pointing
out that while farmers incomes
are being raised, consumers must
likewise be protected.
The means for regulation, he
explains, is in the codes and mar
keting agreements being approved
by triple A.
1T is the declared policy Of the
agricultural act" says Secretary
Wallsces report, ito protect con-
sumers as well as TO raise the in
comes of the farmers. While these
detectives seem contradictory,
actually they go well together and
indeed are interdependent. The
law seeks to raise not merely the
prices but also the purchasing
power of farm commodities. OBJ
viously, this can not be done if the
prices farmers have to pay for vari-
Gus commodities advance excess
Sively.
Farmers Also Consumers
Farmers are consumers as well
as producers; they make up at least
30 per cent Of the consuming public
and have a common interest with
consumers generally in getting
goods at fair prices. They buy pro-
cessed agricultural materials such
as dairy products, hog products,
cigarets and cotton goods. These
things in their finished form in
clude many elements of cost that do
not figure in the raw materials. The
intervening costs often greatly ex-
coed the value of the raw materials.
1t is extremely important that false
costs should not be added to true
costs.
Farmers can not be separated
from other consumers and given
special protection All consumers
must have protection. The farm re-
covery program includes protection
for the consumer, not simply as a
matter of justice to the general
public, but as an aid to farm relief.
Failure to keep consumers prices in
a sound relationship to producers
prices would prevent farm commod-
dity purchasing power from rising
and would defeat the objects of the
agricultural act.
Must Reduce Spread
Form recovery requires, in short,
that producers prices shall rise
more than consumers prices-in
other words, that spreads between
country and city prices shall be re-
duced.
Redistribution of purchasing
power to wage earners and crop
adjustments in agriculture can not
be relied on exclusively to correct
the trouble. Professors, distributors
and others hold a strong position in
the economic system. They can con-
tinue to exact an undue share of
the consumers dollar, if nothing is
done to stop them. Codes and
agreements, unless very
carefully drawn, may serve to per-
petuate unbalanced conditions.
Restoration of a good balance in
the economic system may require
more than allowing fair prices to
farmers without charging the con-
prices exceeding the fair
exchange value prescribed in the
agricultural act. Some pending
that do that neverthe-
less permit increased profits to pro-
cessors and distributors. Such in
creases generally would obviously
work against the purposes of the
act and the national
recovery act, and would counteract
the desired redistribution of pur-
chasing power