The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1936-10-23
There is still another phase Of this
general proposition Of consumer CO.


Phase tercSt to every
producer in this
country. Let us assume, for eX-
ample. that they were perfect in
organization and management; that
they prospered and expanded in
numbers and that they were rem
dering genuine service to the peo-
pie. II that condition were to obtain,
does 1t not occur as a natural ques-
tlon that with SO much strength,
the consumer co-operatives would
eventually establish a class align
ment between producer and con-
sumner? 1t seems to me that the
natural course of events would lead
to this end. and il it did lead to
this end am afraid that because
there are more consumers than
there are producers. the producers
would get the dirty end of the deal.
They would be short-changed be-
cause they would be outnumbered.
This phase seems the more inn
portant because the food stores, food
fields generally, are the sectors in
which these consumer co-operatives
operate best. AS a matter of fact,
the food field Is the most fertile field
for experiments anyway and here
Is quite apparently another expert
ment that has fastened, or is fasten-
ing itself as a parasite upon the
agricultural industry of this country.
know there has been some ar
gument that the consumer COOP
eratives are the answer to the effort
to destroy chain stores. That is not
SO. Chain stores in foreign countries
have licked the co-operatives. They
have virtually destroyed them
where the co-operatives attempted
to drive the chain stores out of bust
ness. 1t becomes important then to
recognize that while the United
States has many chain stores, it
has not now and never will have as
many chain stores as 1t has indie
pcndents.
Again, here is threat to in
dependent business men, particular
ly to the small shop owner, whether
he be in a large city or in the thou
sands OF small towns and villages
where the owners OF such stores
are important to their communities
and pillars of strength in our nation
| al society. II the consumer co-opera-
tives get going, l predict further
decline in the number of independ-
ent merchandise houses through
out the United States. For that rea-
son. il for none of the others that ]
have outlined, it does seem impor.
tant that the consumer co-operatives
move in this country should be
stopped in its tracks and that those
responsible in an official way for en-.
couragfng this sort Of thing should
be shorn of power.
1t may seem q far cry from the
farm field to the price of beer as a
-, working man finds
men it, but there Is q
There's Beer direct connection
and recent devel-
opments again demonstrate the fact
that our whole economic structure
is quite closely related. There is an
increase coming in the price of beer.
Either the working man and others
who like beer are going to pay more
for it. or else they will get smaller
glass. The answer is that ingredients
entering into the production of beer
have increased in price to such an
extent that, according to official
figures, the brewers are now paying
about $3.50 more for the things that
enter into the production of one
barrel OF beer than they did when
the sale Of beer again wa .
legalized.
This circumstance is significant
for the reason that it shows conclu-
sively how tampering with the cur
rency upsets the general balance
within our economic structure and
results sometimes in displacement
OF markets and sometimes In dimi-
mutton Of sales. In the case OF beer
it probably will result in q dis
placement of markets, rather than
any decline in the amount of beer
consumed, despite the fact that the
ultimate consumer viii be paying
more.
This condition is of interest to
agriculture generally because It has
always been commended by the pro-
ponents Of open sale of beer and
whiskey that a substantial new out
let for farm crops was made avail
able by the repeal of the Eighteenth
amendment. Rather, IL was q res
toration of an old outlet that existed
before the Eighteenth amendment
was adopted. But there has been q
combination Of circumstances, large
ly the result of governmental mess
ing, that has mitigated against the
farmers obtaining full benefit from
repeal. These may be enumerated as
follows: Devaluation of the dollar.
crop restriction under the Agricul-
tural Adjustment act, higher taxes,
and a tendency on the part of the
Roosevelt administration to increase
imports from abroad.
In the case OF the devaluation of
the currency, the main purpose, as
announced by the Roosevelt admin
istration, was to increase prices. II
has had that effect and has made the
brewers pay more for the hops they