The Ely miner., 1939-08-03

FULL MARkEI 6AShCl-IH ne
basket being handed this Seattle
sUoman contains surplus food items
purchased tUith free blue stamps.
On the counter are other groceries
she bought ,oith the paid-fo orange
stamps. The government hopes IN
this tUay to cut farm surpIuses.
to buy So in groceries. For every
81 orange stamp he buys, he is CIV
en- free one 50-cent blue stamp. The
blue stamps may be used to pur-
chase only surplus commodities. At
present these include flour, grape
fruit, oranges, eggs, dried prunes,
corn meal, butter, dried beans, rice
and cabbage. Stamps can be re-
deemed by retailers at any bank.
If successful at Birmingham, as it
appears to be at Rochester, Dayton
and Seattle, the plan may be ap-
piled to the entire nation.
Like Earlier Campaigns
It's similar in some respects to
the producer consumer" CAM
paigns staged the past three years
by chain stores to increase con-
sumption of surplus crops by ag-
gressively promoting such products.
The first nationwide 'producer-con-
sumner" drive took place in April and
May of 1886, when chains repre-
senting 1000 food stores undertook
campaign to move California
canned peaches. Producers of can
ming peaches, because of carry
over of California peaches that to-
tailed 100000 cases above normal
in 1886, were expecting return of
only SIS ton for their crops-con-
siderably less than production costs.
When the campaign closed, stocks
on hand had dropped to 1,929, 900
cases compared with the carryover
of {, 400, 900 cases existing before the
drive began. For the growers this
meant approximately $50 per ton for
peaches instead of the SIS, which
many had feared.
Since that first campaign the
drives have been conducted across
the nation, aiding producers of such
varied commodities as beef, lamb,
citrus fruit, turkeys, walnuts, ap-
piles, eggs and onions. As many as
1877, 900 chain and independent stores
have co-operated in single drives, all
directed at maintaining farm prices
while offering savings to consumers.
Retailers Praised.
Last September the bureau of ag-
ricultural economics, pointing out
that these drives reduce the margin
between farm and retail prices, said
that "of all the efforts being made
to influence or stimulate consump-
ton of farm products, the retail
campaigns seem to be the most
effective. The retailers intimate
contact with the consumer places
him in strategic position to in
fluence the direction of consumer
expenditures.
Retailers were among the first to
assist the department of agriculture
when the food stamp plan was set
up. To help move surplus products,
chains are providing the same ex-
tensive promotion for the govern
ment-designated surplus commodi-
ties-at special prices-that they
gave for the earlier campaigns.
At present the plan is being
financed by regular federal surplus
commodity corporation appropria-
tions. If Americas 22,000,00 per-
sons on relief responded in the same
proportion as they have in Roches-
ter, it would cost about $500, 900, 900
a year to feed them the blue stamp
surplus foods. If the 22,000,000 used
the maximum number of blue
stamps, congress would have to pro-
vide $572 2,000,0 900 annually. But in
actual practice it is thought the
plan would involve no more than
$3.50, 900, 900 a year. 1t is also be-
lieved that in normal crop years
the nationwide operation of the plan
would kill off all surplus farm pro-
duction with the possible exception
of wheat. Sponsors say the cost
would be less than any other pro-
posed plan to raise farm prices.