The Semi-weekly Madison County Democrat. (London, Ohio) 1923-19??, 1933-04-28
HEAR
STATE LEADERS
Continued From Page One)


view of the present farm price situa-
ton. He outlined some of the causes
of the deflation as well as stating that
if history repeats itself, the farmer
knows what to expect.
The charts which he exhibited dem
onstrated the fact that unless some.
thing radical is done to initiate prices
the farmer may expect a continuation
of the present farm prices if not
further deflation He said that organ
/ ization of farmers will help bridge the
gap between wholesale and retail
/ prices.
Mr.. Arnold stated that the country
I is now experiencing one of the mos
dramatic declines Of prices in history
that the price decline is worldwide
that similar periods have existed fol
i lowing each of the major wars ane
that all types of industries are being
forced to make adjustments to meet
the lower price level.
/ The speaker further pointed out that
distribution costs change more slowly
so that retail prices have not declined
as much as farm products; that farm
mortgage indebtedness must be ad-
/ iusted and refnanced; that farm taxes
advanced slowly and have been still
slower in coming down and that low
prices for farm products the past three
years have not been caused by an in
creased production.
His charts also demonstrated the
fact that consumption of farm pro-
ducts has been maintained fairly well
and that export trade has declined and
that it is an important item in the
price of farm products. He said that
freight rates are too high, but because
of this, Ohio farmers have consider
able advantage over other producers
who live farther from markets.
Perry Green representing the Farm
Organizations of Ohio, outlined the
farm organization plan for farm re-
lief, classifying the plan under foul
heads as follows:
/. Agricultural reinancing.
2. Restoration Of farm prices.
8. Reduction Of taxes on real es-
tate.
A. Cooperative business.
In regard to agricultural refnancing
he urged farmers to cooperate in
backing the farm mortgage relief pro-
gram He stated that the emergency
farm credit bill provides as follows:
/. Two billion dollars for new farm
mortgage loans and refinancing farm
ers with unfortunate farm mortgages
2. refnancing of these mortgages over
a period of 40 years with an interest
rate not to exceed Az percent for five
years; 8. interest rate to all borrow
ers from federal land banks to be re-
duced to 412 percent for five years; a.
forbids joint stock land banks to make
any further loans.
With regard to the consolidation of
all the farm loan agencies by Presi-
dent Roosevelt, Mr.. Green urged the
farmers to support the plan to make
it a cooperative enterprise so that the
farmers may profit by the fact that
they are termed a select risk.
Mr.. Green stated that the farm or
CARNATIONS are supporting two plans
for the restoration of farm prices:
l. A change in the mortgage sys-
tenn.
2. An initiation in farm prices.
The speaker said that both of these
plans are being considered by the fed
eral government and the president at
the present time and that the emer-
gency farm relief bill which provides
for an initiation of prices is practically
through the legislative hopper and will
probably soon become law.
Mr.. Green said that if the present
mad sweep of deflation is not checked
and policy of controlled initiation
adopted, only one alternative is pos
sible, that of complete liquidation;
that to complete the process of defla-
ton will strain our industries and ur-
ban communities until they break;
that it means cutting down the pay
roll and a reduced consumption Of
farm produce and still lower prices. In