Evening star., 1936-01-17

were the last years DeIOre Cne WOrlos
wide disturbance, caused by the World
War, took place in our economic life"
I had been told so often by the New
Deal that I did it that had given
up hope of salvation. feel better.
The dislocation of wars and slumps
hits the farmer harder than any
other group. Farm prices are more
sensitive to these shocks than wages
and industrial prices. All parts Of
the economic system inevitably come
back into balance with time. But
farm recovery Is longer drawn out.
That is the higher economics OF 1t.
The painful symptoms OF it appears
in the farmers pocket in the slump
of purchasing power Of his dollar.
Many farmers cannot hold on against
these delays in readjustment. I have
held that we cannot see the capable
and industrious driven from their
homes during these periods II they
want to make a fight for them. That
is the humanity Of 1t.
Depression Was Turned
Before NeT Deal Came.
There is at least one hopeful aspect
of these war causes Of the farmers
difficulties. They do not last forever.
Many Of our measures can be OF
emergency character. Recovery Will
cure many dificulties-that is, If it is
allowed by the New Deal to come.
When the world depression was
| turned, in June and July, 1882, agri-
cultural prices rose In a start toward
equality with industrial prices. The
farmers dollar improved more than
20 per cent Prices were moving INTO
a natural relation again. Then came
the era of the great fear. Fright over
the coming of the New Deal skiddeo
the country into the money and bank
panic. The President said, The
mechanics of civilization have come
to a dead stop" Many driver who
has had a bad skid thinks that. Then
began the magic of the New Deal.
And they repeated each mistake OF
the farm board end added big idea.
That big idea is that you can catch
an economic force with policeman.
incidentally the elimination Of that
era of great fear Is the convenient
starting point for all Of the Presidents
| comparative statistics. He chooses the
low point of quotation induced by.
their own actions. If he would go
back a few months into 1892. before
the great fear started, he would f1nd
the prices were 80 to 100 per cent
higher than those he quotes. And
they were in l00-cent dollars. And
even then they were only at the turn
ing of the greatest depression in his
tory. His quotations look like an
effort to warm the Nation over cold
glass chunks in an Illuminated CRATE.
PART III.
New Deal Spending
Must Be Paid in Taxes.
Things have been done to the
farmer by the New Deal which do not
relate alone to agriculture.
Firstly, this torrent OF wasteful
spending, unbalanced budget and debt
will be paid by the farmer as we'll as
all others. It will blight all his days
with anxiety. The farmer pays for it,
not alone in direct taxes, but hidden
taxes are wrapped in everything he
buys. The farmer, in fact, pays In
larger measure than any other group
because he buys not alone for his
family but also for his farm and is less
able than any other production group
to mark up prices of his products and
pass these taxes on to the consumer.
Moreover, about one-quarter OF the
s14, 1000, ,000, 900 Of probable increased
New Deal debt will rest on the farm as
q super-mortgage. Blessed are the
young. for they shall inherit the ma
tional debt.
Secondly, the present policies of
paying for the New Deal by credit in
| fiation produce stock booms that are a
great dole for the money changers"
President Roosevelt, on July "a, 1888,
stated that we cannot attain prosperity
"in q nation half-boom and half
broke" The New Deal has attained
Just that. That half-boom is on the
Stock Exchange, the farmers are half
broke-and the 20,000,000 on relief
are fully broke. These credit booms
add little to farm prices. When they
crack they throw the farmer In the
ditch.
There is thirdly, on currency poll
cies. There is a fourthly, on making
the farmers pay for a large part of
the social security act and receiving
little benefits. There is a fifthly, on
relief policies which make it impos-
sible for farmers to get labor in the
midst Of unemployment. There Is
sixthly and a seventhly, on some other
white rabbits. All of them make farm
thinking difficult and intense. I do
not have the time to discuss them all
now.
PART w.
Economy Of Scarcity
Is New Deal Idea.
| If we are now to deal competently
with farm relief we must examine
the experience with the New Deal
farm measures. There are proved
dangers which must be avoided. In
other words, what have these New
Deal principles done to. the farmer?
President Roosevelt on one occa-
sion said: 'I like to think Of the
A. A. A. not as temporary means
but as an expression of prin-
ciple." From their practical works,
irrespective of their words, the main
principle is the economy Of scarcity
based on control of production en-
forced by telling the farmer what
he can plant.
The largest justification has been
that 1t has raised prices. Prices have
improved. I leave you four thoughts
on that subject: First, the imitation
of the dollar, the drought, and world
recovery would have made higher
prices in any event. Second, the Chi
cago Tribune is authority for the
statement that the farmers income
from many uncontrolled commodities
has been greater in proportion than
from those which have had the at
tention Of the New Deal. President
Roosevelt on Nav an 1Q25 nronhe-