Henderson daily dispatch., 1938-03-09

IN Hutson. assistant AAA admins
TRAITOR explaining the meaning o.
marketing quotas and other reatufeS
Of oron control to se voted on by FAR
mers in this section in next Satur
DAVIS refarenda on tobacco anu GU
ton: -
On the 18th of March farmers IN
the South will vote in three important
referenda. Cotton growers VIII oecloe
whether they want 9 marketing quota
for cotton in 1885, Growers of flue
cured and of dark tobacco will make
the same decision for their respective
crons. In each of the votes, TWO
thirds majority is necessary 10 make
the quota effective.
These referenda will be the mrs!
held under the new AAA farm pro-
gram. which carries out the provisions
of the Agricultural Adjustment Act o.
1888.
The first question which comes up
is: What is meant by the establish
ment of marketing quotas? Inc estaI'
lishment of marketing quotas means
the regulation of the flow of the pro
duct in trade channels. This regula-
ton takes place only after the supply
has become excessive. 1t is done IN or
der to prevent glutted markets and
widely fluctuating farm prices and to
bring about the orderly movement OF
commodities in trade channels and
stability to farm prices and Sarm in
come.
These detectives are IN tho interest
the long run, consumers do not gaia
by glutted markets. When markets be-
come glutted, consumers Go not Guy
much mora Most of the excuses are
purchased by spectators. True, IN
some cases consumers pay lower
prices for q time. but the reduced
prices that growers get are rot fully
passed on to consumers. Because or
the lower prices growers greatly con
tract production in later years, at
which time spectators, already hold
ing large quantities of the commodity
advance prices to consumers for spe-
culative profits. The increased cost T.
consumers during such periods more
than offsets the reduced cost at the
time the supplies are being accumulat
ed.
Under the new farm Act, marketing
quotas can be established only IN
times OF emergency when supplies
have become excessive These quotas
have Leen proclaimed for cotton and
flue-cured and the dark types of to-
bacco in 1898 There has been carried
over from previous cotton crops more
than 6 million bales Of cotton in eX
cess of the normal carryover. The
marketing quota for cotton from the
1898 crop is around II million bales.
This means that an attempt will b
made to. move approximately IL l.lil-
lion bales Of cotton into trade chan
nels from the 1898 crop. This II mil
lion bales, together with the 8 mil
lion bales of excess. supplies from pre-
vious crops, represents supply well
above the II to IS million tales nor
mally used annually by the domestic
and export trade.
In the case of tobacco, the normal
carryover of old stocks at the begin
ming of the marketing season is suf-
ficient to last manufacturers approx
mately two years. The 1887 crop Of
flue-cured and dark tobacco was in
excess of the current level of domes-
tic consumption and exports conse
Quently manufacturers and dealers
and cooperative marketing associa-
lions have on hand something like 100
million pounds Of tobacco in excess Of
the normal carryover of two years
supply.
There is no place to sell the prod
ucts of these excess supplies of cot
ton and tobacco together with mar
ketings from the 1888 crop equal to
or above normal
In connection with the marketing
quota provisions of the new farm Act
have heard the words scarcity and
RECOMMENDATION" used.
First, as to scarcity: The Act pro-
vides that marketing quotas can be
established only after supplies have
become excessive. The Act further pro-
vides that if and when marketing
quotas are established, the market
ing quota, when added to the excess
supplies, shall at all times exceed the
normal supply level. 1t is difficult to
see how anyone can talk of scarcity
IN the case of cotton when there are
million bales in excess of normal
supplies. 1t is equally difficult to see
how any one can speak of scarcity in
the case Of tobacco when supplies in
excess Of normal exceed 100 million
pounds.
If the word scarcity" is to be used
IN connection with the farm program,
1t should be used in connection with
manufactured goods in the hands Of
farmers if surplus supplies of cotton
and tobacco continue TO pile up. If
these supplies continue to accumulate
farmers will not have the money with
which to buy the products Of other In
Gustries. This is the kind of scarcity
which is usually associated wltn SUI
plus of farm crops.
A surplus of cotton, for instance
means more cotton than can be NOV
ed into the hands of consumers thro-
ugh regular channels of trade. Sur
plus cotton is valueless in providing
consumers with ANYTHING TO wear. Ger
tainly it is of no benefit to the cotton
farmer. For him, surplus oe cotton
means lowered purchasing power AM
g. scarcity of articles he needs and
normally would buy. Two million ia
miles depend on cotton for their liy,
ing When they have no money Il
spend they cannot purchase manufan
tured goods. Factories slow I'D. indus
in1 re Il