Evening star., 1939-02-05

From President Roosevelt's inner
circle comes a hint that the distribution
system which the Bible says Joseph
used to feed the hungry people of Egypt
may be brought up to date by the New
Deal in an effort to end the American
paradox of starvation in the midst of
plenty
It is advanced in a book just pub
lished by brain truster," Mordecai
Ezekiel, one of the authors of the farm
program.
Joseph stored surplus grain during
seven years of bumper crops in order to
feed the Pharoahs people during seven
years of drought and dust storms.
Ezekiel would store all sorts Of sur
pluses-steel and RADIO and automobiles
and other things Joseph never dreamed
OTTO balance fluctuations in supply and
demand and keep employment and pur-
chasing power at a consistently high
level.
Joseph's plan covered only farm crops.
It's 1899 counterpart takes in all of big
business and industry.
The basis of both is Government
guarantee that if producers will produce
steadily surpluses that may accrue will
be disposed Of
Initial Phases Being Tested.
Joseph's plan had the approval of
Pharoah. Ezekiel says his plan is mot
to be taken in any sense as an expression
of views held by the administration.
Ezekiel's book, Jobs for ALL" (Alfred A.
Knopf, publisher) is published with the
approval of the United States Depart
ment of Agriculture, however, and ex-
periments out of which his plan logically
could grow are now being carried on by
the New Deal.
For instance:
Ezekiel's program would bring whole
Industries together to decide voluntarily
how much each industry would produce
during the next year. After this total
was set, each manufacturer would be
given a definite quota as his share of the
business for the year.
The Government would guarantee to
buy, at a discount, any surplus the
manufacturer had over his quota at the
be made binding by contract between
the individual manufacturer and Gov
eminent agency designated to umpire
the plan.
For the businessman Ezekiel argues,
this plan would eliminate uncertainty
about the future, stimulate investment
and encourage expansion.
For the workingman, it would mean
steady Job and steady income to buy the
goods of the grocer, the butcher, the
baker, the tailor and the man at the
filling station, which brings it right back
to the businessman again, for if buying
were constant surpluses would be re-
duced to a minor problem that could
be Strengthened out in the next years
plan.
Thus the Ezekiel program runs.
Surplus Problem Tackled.
Nothing as sweeping as that is being
attempted right now. But curret bust
ness journals are filled with talk about
Agriculture Department proposals to
bring the food industry into a general
agreement to market surpluses at lower
than usual prices for the purpose Of
Cd Disposing of crop excesses which
for years have been the root of the
national farm problem.
t2) Stimulating employment in food
processing industries, in railroads and
other carriers which transport food to
market, and in the realm of the middle
men" who bridge the distribution gap
hat nd
90 Broadening consumption among
low-income families who could buy more
if prices were lower.
Such marketing pacts already have
been accomplished, on small scale,
through the Federal Surplus Commodi-
ties Corp, Agriculture Department agen-
cy which buys surplus crops and gives
out the country.
An example is the F. S. c. G. plan for
the citrus fruit industry in which pro-
ducers, packers, jobbers, wholesalers and
retailers co-operated.
The F.. S. c. C. agreed to buy and
give away 100000 boxes of grapefruit
In return, the grapefruit growers agreed
to divert 100000 more boxes of low
grade fruit from the normal market by
selling 1t for fertilizer and stock feed.
Not only will this remove the surplus
and stabilize prices, but it will make
possible shipment of 100000 more boxes
Of fruit than were shipped during either
Of the last two years.
Reductions Along the Line.
More important from the standpoint
Of the housewife who buys the grapefruit
for her breakfast table is the agreements
proviso for an industry wide drive to cut
handling cests reduce canning margins
and lower freight rates so retail prices
would be lower. Retailers, for example,
agreed to charge not more than Is per
cent of the price they paid to the whole
saler.
AS its share in increasing grapefruit
sales, the F. S. c. c. is giving its 100000
boxes away in areas which normally use
little or none of the fruit
This same general marketing educa-
ton" pattern is adopted, as far as posi-
BILE, IN disposing of other surplus COM
modities.
AT each step of the distribution system