The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-07-14
by William Bruckart

SiSuCS W COnlTOl Oh INDUSTRY duu dSTl-
culture. With federal umpire to
sit in judgment. for example. farmers
could organize and control their own
destiny, solve their own problems of
acreage and surplus and be independ-
ent.
That same reasoning, 1t is asserted,
applies to every other line of COM
mercial endeavor. 1t represents a
theory that private business, observed
from watchtower by something of
a federal dictator, can and will man.
age it's own affairs to a better advan-
tage than can be done by continual
enactment of new and half-baked laws.
To that extent, therefore, instead of
making partners of the government
and private business, the Roosevelt
program takes shape as a possible
move to put business on a plane to
do the job itself.
1t seems pertinent to call attention
just here to the fact that, except In
wartime, neither agriculture nor any
other industry has ever received the
shock of its life with such eQuani-
nifty as it has swallowed the orders Of
the federal government. l have heard
it said that 1t would take just such
a shock to awaken the individual mem
bers of the various lines Of trade to
the necessity for complete co-ordina-
ton of all of their activities and func-
,tions. | should like to supplement
that observation with one of my own
to the effect that it required just such
condition as we have experienced
to awaken congress to the necessity OF
letting some one control industry who
is acquainted with industry. Anyone
in congress usually will say frankly
that most members of congress can
not be familiar with all details Of all
businesses, yet those same members
try to legislate on matters affecting
those details.
President Roosevelt, on his return to
the White House after vacation, re-
MuSf 6ooSt in deadly earnest
Prices about the necessity
for boosting of
prices and that nothing Is going to
stand in the way insofar as the gov
eminent can control those factors.
His statement was but a repetition
and broadening of his earlier appeal
to the cotton farmers. To them, he
sounded a keynote for the whole cam
paign of crop reduction. No doubt
exists that unless the farmers help
themselves, the crop reduction pro-
gram and the consequent boost In
prices cannot be expected to be sue
cessful.
In other words, the situation is this !:
the federal government has set up
machinery for reduction of crop acre
ages. 1t has worked out program that
means higher prices for that which
the farmers sell, and 1t has made a
part Of that program an imitation OF
credit and use of federal funds. 1t
has resorted to its taxing power in or
der to obtain funds to compensate
those who agree to cut acreage and
reduce the surplus. 1t is up to the
farmers, therefore, to do their part.
The reason the President spoke Of
cotton first was because that crop is
still in position and at stage Of
growth where part of it can be de-
stroyed. 1t was explained in this con.
nection that the growth to fruition Of
the entire acreage of cotton now plant.
ed would increase the surplus to such
an extent that carry-over of as much
as 27.000,000 bales was possible. That
figure probably is too high, but the
point is that growth of this years en-.
tire crop would only add to the amount
of cotton already stored from previous
years and the result obviously would
be a price reduction. Some market
experts say it might go down to 3h
to 4 cents a pound.
Tobacco is the next crop in line,
1t still can be cut down. The Depart.
ment of Agriculture is working on
plans to levy a processing tax to pay
the growers for curtailing that crop.
The tax is scheduled to be cents a
pound and will be collected, as the
other processing taxes are, from the
factories that prepare the commodity
for market. A wheat processing tax
of 80 cents a bushel has gone Tito ef-
feet already to finance curtailment of
the surplus wheat acreage. And the
same can be written respecting pro-
cedure for the other commodities In
question.
Nevertheless, one can ask what good
the processing tax will be and what
will be accomplished by this vast ma
chine that has been set up to help the
farmers unless they themselves CO.
operate. The answer, If stated in can
dor, would be. nothing.
A few more weeks probably will be
sufficient time within which to Judge
whether the farmers are going to do
their part. If they do not, it seems
obvious the administration plans can
not succeed.
During the debate in congress when
the farm parity bill was under consid-
Grafton, there were frequent references
to the possibility that the program
could not succeed because too many
farmers would hold back.
So from whatever angle one ex-
amines the program, one arrives at
the conclusion that it is ''up to the
farmer" If the price he receives for
his wheat or his cotton or his other
products fails to stay around the point
where it is profitable for him to en-
gage in the industry, some of his num-
Der have killed the goose that laid the
golden egg.
Operation of the processing tax al
ready is being felt by the city resi-
dent and, as is natural. he has be
gun to complain. But he can do moth