The people's voice. [volume] (Helena, Mont.) 1939-1969, 1942-09-04
CCo.optig2'als'
F.U.C.T.A...

All Stood to Lose.
Action in Three Days.
Telegram Tells Story.
Flax producers whose countenancei
have fallen as the price of that slip
perry grain slid downward, will enjoy
q face-lifting when they read this
story. The drop in price is due tc
stop as a result of the creation of an
Ever Normal Granary of Linseed
Oil" which extends to the crushers OF
flax loan program on the oil they
extract and keep in storage. This
benefit is passed on to the farmer
by providing an immediate market
for his 1912 crop of flaxseed as well
as putting a floor under the price at
the loan value.
Get the background on this and you
will understand what it is to have an
organization and somebody on the job
to look after the interests of every
phase of agricultural production. Last
November the National Farmers I'm
ion Legislative Committee, under the
leadership of NJ w. Thatcher, its
chairman, put on a drive in Washing
ton, D. c., to give the farmers an So
per cent of parity loan on flaxseed.
That drive, like many others, was sue
cessful and a loan value of $40
bushel was set up for the 1912 crop.
Then this developed: Much of the
public elevator space, owned by crush
ers, was made private. The crush
ers did that naturally to make GER
tain that they would have flaxseed on
hand to keep their mills going. On
top of that, demand for linseed oil
fell off, mainly because paint and
linoleum manufacturers had difficulty
getting pigments, cans, etc. But the
Army and the Navy must have plenty
of linseed oil for the duration of the
war because it is an essential war
material How could they be assured
of this critical war material? The
1912 flaxseed began rolling in to the
terminals for lack of demand for
the oil, the market value dropped be-
low the loan value. All three-farm-
ers, crushers and our fighting forces
stood to lose. 1t was anything but
an example of national unity in the
face of wartime necessity.
On Monday, August "a, when the
price of flaxseed fell to $3.50, or 10
cents below the loan value, M. w.
Thatcher saw 1t was tine to move
again. BY Wednesday, with splendid
from Claude Wickard,
secretary of agriculture, and J. B.
Hutson, president of the Commodity
Credit Corporation, the job was done.
Here is the text of the telegram re-
ceived by Mr.. Thatcher from Presi
lent Hutson, which shows how it was
arranged to put floor under the
price of flaxseed and get the linseed
oil moving for the national needs:
washington, ID. O., August I'm. |
W. Thatcher, General Manager, Farm |
srs Union Grain Terminal Associa- |
ion, ST. Paul, Mimi: Following tele-
,ram sent to eight largest linseed oil
today:
"In line with discussion at meeting
leld on August 3, Commodity Credit
hereby offers to make
oans on a nonrecourse basis on up
o 40 per cent linseed oil produced
" your company from 1912 crop do
nestle flaxseed, on basis of IL cents
er pound of pure, raw linseed oil,
sual good quality stored in zone L;
% cents in zone 2, and 12.4 cents
n zone g. provided your company
avs not less than announced support
rices for flaxseed, basis $40 per
ushel for No. 1 flaxseed, Minnea-
oils, and prices at other points as
pecified under Comodity Loan Pro
ram, and your company also agrees
nat linseed meal will not be sold at
sss than $50 bulk, f. o. b. plant basis.
oans on oil to terminate in one year
r on demand if needed for lend-lease
r other war purposes, and storage
nd insurance on oil, while under
,an, to be furnished by company free :
cost to Commodity Credit Corpora
on. This offer to become effective /
pom telegraphic acceptance from you,
Ibject to confirmation by contract
, be submitted you in near future. :
Iovement of flax to East Coast mills !
'r crushing to be handled by supple ,
entary agreement. J. B. Hutson, II
c. C. c."
Thus the Farmers Union secures to :
lie flax grower the loan value of his /
ain as the cash market price, and
Its him break in spite of lack of ]
orage space and diminished COM
ercial demand. Such a farm organ j
alton, with competent, alert leader
Zip, proves its value in dollars and {
,nts to every farmer, time after
ne.
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