Evening star., 1943-11-01
Text OF President Rooseves Message to Congress on Fo

production and lower consumer
whole year. In fact.
it is about equal to the cost of us
of Waging this war for three days.
We are only applying here the
same principle which has proved so
effective in the production of other
war materials-Such as copper lead.
zinc. aluminium and others.
Every nation now in the war has
used some form of government
payments in order to
hold down the cost Of living and
at the same time to allow a fair
return TO the farmers. A good part
of this great success of the sta biliza-
ton program in both Canada and
Britain is due to the effective use of
government funds in this way.
Although this program cannot
hold the line without the enforce
ment Of a firm price control and
without an adequate tax and savings
program to absorb excess purChas-
ing power, nevertheless it is equally
true that the firmest price control
and the WiseSt fiscal policy cannot
do the job themselves without the
use OF price supports.
When properly used they have
three important advantages: First,
they stimulate production of GER
tain necessary and select crops.
Second, by preventing price in
CreaSeS. they eliminate infationarv
tendencies. Third. they encourage
the distribution of food through
normal legitimate channels instead
Of black market operators, who are
willing to pay higher prices to farm
erS with the expectation of selling
above ceiling prices.
When effectively used. this pro-
gram not only performs this neces-
Sary function in StabillZatiOn of the
cost Of living but it also results in
great savings to the Government
and TO consumers. The expenditure
Of very small sums makes it possible
to avoid pvramiding price increases
all down the llne-from the pro-
ducer through the professors whole
SalcrS. lObbers and retailerS-the
cost of which runs to extremely
large amounts.
In the case of copper. for example.
it has been estimated that every
dollar paid by the Government to
suDsidlze and increase production
has saved the Government s28
In the case of the coal and oil
transportation subsidy. very MOD
crate payments have avoided major
increases in prices If there had
been increases in the prices of these
basic items. they would have in
creased the cost Of producing prac-
tlcallT every commodity manufaC-
tured on the East Coast.
In the case OF food the money
spent by the Government has not
only assured US increased produc-
ton. but, directly and indirectly. has
saved the Government and con-
sumerS billions Of dollars.
The agencies charged with respon-
siDi!ity for sJablliZing the cost Of
living Will. from time 10 time. place
before the Congress the programs
necessary 10 hold the line. These
Will require money. ! strongly urge
the Congress to give serious con-
oideration to their requests. I am
confident that the executive and
legislative branches of the Govern
ment can pull III harness 70 get
the Job done.
Farmers Income.
The administration Of the food
a great benefit to farmers. Farm
income last year reached an all-time
peak-and this year it will be
be higher still The increase in the
prices that farmers pay for the
commodities they buy. on the other
hand. has been held to very much
less than the increase in the prices
they receive for their farm products.
In consequence, the net income
OF farm Operators-lnCome after all
eXpenseS-haS risen 10 the highest
level ever enjoyed by farmers. The
average annual realized net income
Of the farm operators of the Nation
during the five prewar years, 1885
TO 1889, was S4.668 900, 900 The
realized net income for 1889 was
S4.430 100000 In 1912 1t was So
500000,00O The estimate for l943 is
SI2475. 900 900.
We cannot, however, look Al the
total income Of farm operators by
itself. We must also look at the
income Of the farmer in relation
TO the income of the rest of the
country.
The average income per farmer
since the outbreak Of the war in
1889 has risen more than the aver
age income Of the other parts Of
the population. This was also true
between 1910 and 1914, which is
the primary base period for parity
calculation. In 1912 the increase in
the average income per farmer over
the parity base period was 3S per
cent greater than the increase in
the average income of the other
people in the country. In l943 It
was so per cent greater.
In plain language. the farmer,
this year, is not only better off in
relation to others in the pOpula ton
than he was before the war broke
out; he is better off than he was in
the base period 1910 to 1914. and bet
ter off than he has been in any
year since that time
/ This is Just and desirable.
All through the 20S. and through
the early years Of the 30S. per capita
farm incomes were far below fair
levels. The Nation has profited
from the fact that this injustice has
been corrected.
Farmer More Prosperous.
1t has been argued that the farm
population has been receiving a
decreased proportion of the ma
tlOnal income. This is true. But it
does not deny the fact that the av-
erage individual farmer is more
prosperous today, as compared with
the rest of the population, than he
has been in 80 years. Any seeming
contradiction is resolved by the fact
that the nonfarm population has
increased during this 30-year period
by more than so per cent. while the
farm population has remained vir-
tllal1J- rrncIa,,nol