Evening star., 1935-01-01
guarded, regulated and controlled Tor
a. .-..llin ssralfnHn

ment has been forced to 60 into
the banking business to a greater
degree than most people realize. The
Reconstruction Finance Corp. Is about
the biggest banker in the world at
the present time, and I do not know
how many other Government agencies
are in the banking business in some
degree. We are on the way to full
control of money, whether you call
it money or credit. I know all the
objections to Government control and
ownership. but 1t Is sufficient to ask
whether the Government would have
made as much of mess Of banking
between 1915 and 1929 as private
proprietors did.
Farm Problem Reviewed.
It is generally understood one of the
main causes of the depression was
due to policies having to do with the
gradual decrease of income Of our
agricultural population. According
to the Department of Agriculture the
farmers of the United States received
81 900, 100000 more from various
sources in 1884 than they received in
1888. The farm population of ap-
proximately 30,000,000 people had
an income in 1888 of $4,000, 600, 900,
therefore, In this year just closing
they had an income of $1,000 600, 900.
However, that is $4,000. 100000 less
than they had in 1926 when 1t was
$4,000, 100000. The farmers fixed
oI, nf int on6
penditures are now as high or higher
than they were at that time. The
question that should be answered in
1885 is whether or not the farmers of
America can carry a load with an
income of $7,0O0,000,00 now. when
they had all they could do to carry
it with an income of $l3,000,000 900
in 1926.
Under the N. r A., the principle
was enacted into law that industry
shall not sell below the cost of
production. We must find way to
balance the economy of agriculture
and industry by giving the farmers
the cost of production. When our
farm policy becomes so far advanced
that the farmer gets cost of produc-
ton, We do more than rehabilitate
the farmer, we rehabilitate the foun-
dation of the Nation.
In country as large and rich in
resources as ours the farmer who feeds
the Nation has the right to enjoy the
comforts and conveniences of modern
invention. machinery and electricity
that is enjoyed by his brother in the
cities. With this in view, President
Roosevelt, a year ago. appointed a
commission to investigate the posi-
bilities of bringing electric power and
light for use by farmers and farmers
wives at price they can afford to
pay He recognized that a method
could be found to bring electricity to
the farms, at prices farmers can afford
to pay, for pumping water. saving
wood, grinding feed, operating wash
ing machines and flatirons, with elec-
trio lights for the house and the barn,
and even used for cooking. He said:
Electricity can relieve the drudgery
of the housewife on the farm and lift
a great burden off the shoulders of
the hard-working farmer" OF the
100000 farms in the United States
100000 are entirely without electric
service.
Delivery Cost Is Factor.
In the opinion of the Presidents
commission, the number of these
which now can be economically given
service range from 100000 to 3,000,-
600, and these can be given electricity
at price they can afford to pay only If
electriflcation is undertaken on a wide
scale. The commission says: UNLESS
the Federal Government assumes an
active leadership, assisted in particular
instances by State and local agencies,
only negligible part of this task can
be accomplished within any reasonable
time"
The big problem in rural electrifica-
tion is not the most of generating
energy, but the cost of delivering it to
the rural customer. In Canada, Great
Britain, France and other countries
this fact has been recognized.
Several reasons might be advanced" i"
says the commission. ito explain why
only 10 per cent of the Nations farms
0ess than 6 per cent in the Mississippi
Valley purchase electricity. These
are the lack Of interest by operating
companies in rural electrification. high
cost OF line construction because of
the unnecessarily expensive type of
line used, onerous restrictions cover
ing rural line extensions and high
rates."
Having recognized the advantages of
rural electric service and reached the
conclusion that only under Govern
ment leadership and control is any
considerable electriication of "dirt
farms" possible, We face the obvious
obligation Of getting it done. An allot-
ment of $10O,000,OO0 actually to build
independent, self liquidating rural
projects would, in the opinion of the
commission. exert a mighty influence
in various directions.
Transmission Cost Computed.
The report then continues: This
plan calls for serving territory not now
occupied and not likely to be occupied
to any considerable extent by private
interests. The proposal has become
possible only recently through the
marvellous development of the Diesel
engine, which could be used for power
in regions where nighttime extensions
are not feasible. Another source of
power would be small hydro plants
where suitable sites are available. In
cases where it is practicable, public
transmission lines utilizing either
Government or private power sources
could be erected. Rural distribution
lines will cost from $500 to $500 per
mile to construct, and to amortize this
cost In 20 years involves cost Of each
of three consumers on a mile of line
OF about 81 month.
Planning on a wide scale. saw of
service to 100000 farms in units of
1,500 farms, the total cost, If gener-
ating plants are included for each
unit, would be $3.50 per farm; but if
one-half OF the units can be supplied
from existing sources the total cost
would be about $3.50 per farm. In
both cases the outlay would be amor
tized through an appropriate element
in the rate.
The commission further says: eff
= L. Il l.