Page 6 



The DlinoU Agricultural A»»oci«tion Record 



May S, 1924 



flvery Day Brings More Supporters—Help Push i 



f\ 



the American level as the war- 1 - — 19 — 



shattered world outside our "ForeiRn nations will construe 



the McKary-HauKen BUI as 



tbree-mile limit is lower than 

 our fenced and guarded condi- 

 tion within. 



The McNary-Haugen Bill mere- 

 ly brings the outcast farmer 

 home and permits the price of 

 his prodi ct to be made by the 

 price of " other things" in Amer- 



! —16— 



"Millers and |>ackers will not 

 manufacture for e\|>ort if they 

 liare to |>ay a hlKher price for 

 wheat or swine than their for- 

 elKn coiniietitors." 

 This is simply a misconception 

 of the bill. Flour or pork for 

 export are as much a part of the 

 exiportable surplus of wheat and 

 swine as the raw material. The 

 bill recognizes this and provides 

 .for it. The Corporation will ab- 

 sorb the difference between the 

 dotnestic and the export price of 

 wheat and swine purchased on 

 the domestic market and sold as 

 flour or pork on the markets of 

 the world. 



— i: — 



**li»r:tri|>at:an certificates (scrip) 

 Would Increa-te our circulatin-x 

 nieilia and thus inflate tlie cur- 

 rency." 



{Participation certificates con- 

 stitute the obligation of the Cor 

 poration to pay residue of the 

 amounts withheld by it against 

 loss and e.xpense. As commercial 

 paper it will increase circulating 

 media to the exact e.xtent that 

 the commercial paper of any cor- 

 poration does so — less rather 

 than more, because, technically, 

 it is not even "negotiable paper". 

 It is ridiculous — mere childish 

 prattle, — to say that it will "in- 

 flate the currency". Relatively 

 this issue of commercial paper 

 is insignificant compared with the 

 negotiable paper emitted by in- 

 dustrial corporations of like size. 



—18— 

 "While the bill ai>|iears to api>ly 

 to a variety of products It Is 

 really Intended to apply only 

 to wheat — not to cotton be- 

 cause the price Is above pre- 

 war exchange value — not to 

 wool because we lni|H>rt nearly 

 half our consumption, nor to 

 animal iiroducts because It 

 could not so apply without put- 

 tinK the government int<^ the 

 liackUiK business nor to com 

 because It Is ex|>arted prlncl- 

 l>ally as animal products. Com- 

 mcMlities other than wheat are 

 iiiclude<l only for jiolitical pur- 

 |>oses to stay the opposition of 

 their producers.** 



The bill applies to no product 

 except when, and as long as, its 

 price falls below the pre-war ex- 

 change value. ' When that bap- 

 pens to a product the bill ap- 

 plies. . It would not apply to cot- 

 ton today because the boll-weevil 

 and a temporary shortage of sup- 

 ply have increased the price. 

 There have been plenty of times 

 in the past when it would have 

 applied. The lack of such a 

 measure once caused Civil War. 

 It is true that the bill would 

 probably never have application 

 to wool because we import wool 

 and can protect that price by a 

 tariff. The assertion that it will 

 not apply to meat products is 

 astoundins. Its application is 

 relatively easy and has no effect 

 to put the corporation into the 

 slaughtering and packing of meat. 

 Its application to corn will be 

 both direct and indirect through 

 its effect on swine. 



These products are not in- 

 cluded for political purposes. The 



'ilmnpinit' and will retaliate.'* 



Here is another objection which 

 deserves an answer only in def- 

 erence to the very high authority 

 who voices it. Not one ounce 

 greater surplus will reach the 

 shores of other lands than is 

 now the case. Nor will the price 

 abroad be one cent lower. From 

 without no one will be able to 

 know -by their own experience 

 that the bill has passed. It- pre- 

 vents the price of the surplus 

 from depressing the price of do- 

 mestic consumption but it leaves 

 every foreign nation precisely 

 where it was before. Foreign 

 nations can hardly retaliate be- 

 cause the American farmer gets 

 an American price for the por- 

 tion of his crop consumed in 

 America. The objection is with- 

 out merit. 



Within the last few days Sec- 

 retary Hoover has complained of 

 pooled operations by foreign na- 

 tions affecting our Domestic 

 prices and has recommended leg- 

 islative action to cure it. It is 

 surely a lesser thing to take leg- 

 islative action to prevent our 

 own method of selUnK from de- 

 pressing our Domestic price of 

 agricultural products. 



— 20— 

 "The Bill Is unconstitutional.*' 



This is a smoke screen. Ex- 

 haustive analyses conducted by 

 legal counsel of more than one 

 branch or Department of the 

 government have not discovered 

 one clause in the bill upon which 

 a substantial claim of unconsti- 

 tutionality can be based. Their 

 conclusions have been single and 

 emphatic on the constitutionality 

 of the bill. 



Such is the nature of the ob- 

 jections to the bill. All will be 

 found to analyze to the theme of 

 those stated which may be fairly 

 regarded as comprehensive of the 

 entire case of the opposition 

 voiced by its ablest advocates. 

 Not one of them goes to the 

 fundamental basis of the bill. 

 Not one contests the economic 

 analysis on which It proceeds. 

 They are apprehensions rather 

 than deductions, epithets rather 

 than arguments, statements of 

 grievances rather than of wrongs. 

 They oppose a great construc- 

 tive measure addressing a funda- 

 mental fault in our economic sys- 

 tem and pointing the way at a 

 critical cross-roads in the devel- 

 opment of our national policy. 

 For this purpose they seem 

 wholly inadequate, inconsequen 

 tial, almost frivolous, and it is 

 worthy of emphatic remark that 

 none attempts to consider the 

 effect of enactment of the bill. 

 That tipeculation is worthy of a 

 thought. 



For nearly four years our eco- 

 nomic progress has been clogged 

 by the depression of our agricul- 

 ture. No wide constructive move- 

 ment in Commerce and industry 

 has been possible against the re- 

 sistance of that leaden drag. 

 Each forward acceleration has 

 come to a swift and mysterious 

 stop before it could fairly enter 

 its stride. Confidence in any 

 business future more remote than 

 a few months has been conspicu- 

 ous by Its absence. The cause is 

 perfectly obvious. With almost 

 every other circumstance favor- 

 able, it goes without saying, that 

 the integral unit of this nation 

 cannot move forward with its 

 basic segment in a ruinous condi- 

 tion. Through this great gap in 



been invaded by the European 

 malady and our progress has 

 been frustrated. 



The McNary-Haugen bill would 

 cure this fault almost instantly 

 Not only would it bring the agri 

 cultural segment of our structure 

 promptly abreast of our industry 

 it would preserve and keep it 

 there. Never again (if during 

 the period covered by the bill the 

 farmers' cooperatives perfect 

 their own marketing mechanism) 

 need we apprehend a shattering 

 of our economic balance in this 

 grave regard. Fundamental prices 

 will forever fluctuate but there 

 will be no paralyzing dispropor- 

 tions in these movements. The 

 whole structure will move up and 

 down In harmony and unison. 

 The entire pattern will be sta- 

 bilized and rendered homogene- 

 ous. It makes no gneat differ- 

 ence whether prices be high or 

 low so long as they are fairly 

 related one to another and the 

 bill will tend to make and keep 

 them. so. 



Its immediate effect will be to 

 raise the price of wheat nearly 

 one-third and the price of corn 

 and live stock in somewhat lesser 

 proportion but to an equally just 

 relationship. The result in terms 

 of immediate general prosperity 

 need hardly be dwelt upon. It 

 is obvious. 1924 would be a year 

 of wonders in our economic an 

 nals and business could look to 

 a sound and equable future with 

 a confidence it has never dared 

 to indulge since the fearful erup- 

 tion of 1914. 



2,200 ENLIGHTENED 

 HEARERS ADVOCATE 

 IMMEDIATE ACTION 



Resolutions Drafted At I. A. A. Farm- 

 er-Banker-Business Man Meetings 

 Have Firm Meaning 



bill means exactly what it says, our protective barriers we have 



Here is the sentiment of over 

 2.200 farmers, bankers and busi- 

 ness men, — --""n'ing Illinois 

 and parts of eastern lowa and 

 western Indiana, who have heard 

 the facts concerning the McNary- 

 Haugen bill. Each one of the 

 resolutions was passed after ob- 

 jections had been raised from the 

 floor and answered by the speak- 

 ers. That a great deal of oppo- 

 sition to the bill is founded on 

 lack of knowledge concerning the 

 facts, becomes apparent when 

 one considers these resolutfons. 

 Rock Island 



At a general meeting of over 

 six hundred farmers, business 

 men, and bankers from Eastern 

 Iowa and Western Illinois, held 

 at Rock Island, Illinois, this 

 twenty-fourth day of April, 1924, 

 the following resolution was 

 adopted: 



WHEREAS: There is now be- 

 fore the Congress a bill known 

 as the McNary-Haugen Bill, con- 

 templating immediate relief for 

 agriculture in its broadest sense, 

 and 



WHEREAS: It is the sense of 

 this meeting that this is the only 

 measure now before the Congress 

 which will bring about the neces- 

 sary result, i. e., that of raising 

 the purchasing power of our basic 

 food products to a parity with 

 that of those products which the 

 farmers must buy; 



NOW THEREFORE, be it re- 

 solved that the Representatives 

 in both houses of Congress, from 



their active support and coopera 

 tion with a view of making this 

 bill a law during the present 

 session of Congress. 



BE IT FURTHER RESOLVED, 

 That a copy of this resolution be 

 sent to each member of Congress 

 and to the President of the 

 United States. 



Danville 



At a joint meeting of Farmers, 

 Bankers, Business and Profes- 

 sional men from Eastern Illinois 

 and Western Indiana, held this 

 26th day of April, 1924, in Dan- 

 ville. Illinois, the following Reso- 

 lutions were adopted: 



WHEREAS: Basic agricultural 

 commodities such as wheat, corn, 

 hogs and cattle are normally 

 produced by our farmers in vol- 

 ume over and above the domestic 

 needs of this country, and 



WHEREAS: The existence of 

 such surpluses, that must ulti- 

 mately find outlet In the world 

 markets move in trade only on a 

 basis of unprotected world's 

 price, and 



WHEREAS: Such price there- 

 by obtains for the whole of the 

 commodity as well as for the 

 surplus, in conformity to eco- 

 nomic law, and 



WHEREAS: The costs of pro- 

 duction to our farmers are highly 

 protected by "legislative enact- 

 ments" such as the Transporta- 

 tion Act, the Adamson law. Re- 

 striction of immigration, the Tar- 

 iff and other acts, and 



WHEREAS: Such "legislative 

 enactments" compel the farmer 

 to produce at high protected 

 costs, and the surpluses of such 

 commodities compels him to sell 

 in a demoralized unprotected 

 world's market or upon such 

 basis the whole of the commod- 

 ity at correspondingly low prices, 

 and 



WHEREAS, a Bill for an Act 

 known as the McNary-Haugen 

 Bill, now before our Congress, is 

 designed to restore to Agricul 

 ture equality with Industry and 

 Labor, by skimming off such sur- 

 plus, selling it in the world's 

 market on that basis; so that 

 the bulk of the commodity mov- 

 ing in domestic trade, according 

 to domestic needs, may sell at a 

 domestic protected price, and 



WHEREAS, the Committees on 

 Agriculture and Forestry from 

 the respective houses of Congress 

 have now favorably reported out 

 «f Committee this Bill, after ex- 

 traordinary consideration and de- 

 liberation. 



THEREFORE BE IT RE- 

 SOLVED: By this meeting as- 

 sembled this 26th day of April, 

 1924, in the city of Danville. 

 Illinois, that we urge upon our 

 Congressmen representing the 

 great state of Illinois at our na- 

 tional Capitol, the immediate 

 need of working for and secur- 

 ing the passage of the McNary- 

 Haugen Bill, and 



BE IT FURTHER RESOLVED, 

 That a copy of this Resolution 

 be placed in the hands of our 

 President of the United States 

 and that additional copies there- 

 of be forwarded to our Congress- 

 men from Illinois and Indiana. 



Springfield 



At a general meeting of over 

 three hundred farmers, business 

 men, and bankers from Central 

 Illinois, held at Springfield, Illi- 

 nois, on the 25th day of April, 

 1924, the following resolution 

 was adopted: 



WHEREAS: Agriculture is to- 



Illinois and Iowa, be urged im- day and has been ever since 1919 

 mediately to give this measure sorely distressed, and 



WHEREAS: Such distress Is 

 directly traceable to the fact that 

 those basic agricultural commod- 

 ities of which surpluses normally 

 are produced are exchanging in 

 trade for commodities and serv- 

 ices required by agriculture at a 

 great disparity, and 



WHEREAS: There is now be- 

 fore Congress a measure known 

 as the McNary-Haugen Bill, de- 

 signed to segregate such sur- 

 pluses from our domestic mar- 

 ket — selling such volume in the 

 world market as we do not ex- 

 change in trade in our domestic 

 market on a parity with the com- 

 modities and services required 

 by agriculture, restoring to agri- 

 culture an equality with industry 

 and labor; 



THEREFORE, be It lesolved 

 that we endorse the principles as 

 embodied in the McNary-Haugen 

 bill, now reported out of com- 

 mittee, and 



BE IT FURTHER RESOLVED, 

 that we urge our members in 

 Congress to work for and secure 

 the enactment into law of this 

 bill at the earliest possible op- 

 portunity, and 



BE IT FURTHER RESOLVED, 

 that a copy of these resolutions 

 be placed in the hands of the 

 president and every member of 

 Congress from Illinois. 



Blooniinf;ton 



WHEREAS, a grave national 

 emergency exists due to the in- 

 equality of values as between farm 

 products and other necessities of 

 life, made possible by conditions 

 which enable the price of farm 

 commodities to be fixed by the 

 comparatively small exportable 

 surplus; 



AND WHETREAS, the establish- 

 ment of permanent business pros- 

 perity is dependent upon a restora- 

 tion of equality In commodity val- 

 ues; 



AND WHEREAS, a bill known 

 as the McNary-Haugen bill, has 

 been introduced in Congress, which 

 has for Its purpose the restoration 

 of equality of values on a pre-war 

 basis, and which gives reasonable 

 promise to accomplish that result; 



THEREFORE BE IT RE- 

 SOLVED, that we endorse the 

 principles as embodied in the Mc- 

 Nary-Haugen bill, now reported out 

 of the Ck>mmittee, and, 



BE IT FURTHER RESOLVED, 

 that we urge our representatives 

 in Ck>ngress and the President of 

 the United States to work for and 

 secure its enactment into law at 

 the earliest possible opportunity, 

 and, 



BE IT FURTHER RESOLVED, 

 that a copy of these resolutions be 

 placed in the hands of the Presi- 

 dent and every member of Con- 

 gress from Illinois. 

 / 

 ^lany Indorse Bill 



Among the men of high finance 

 and big business endorsing the 

 McNary-Haugen bill are the fol- 

 lowing: 



John R. Mitchell, former mem- 

 ber of the federal reserve board, 

 and president of the Capital Na- 

 tional bank of St. Paul. 



Louis W. Hill, chairman of the 

 board of the Great Northern rail- 

 way. 



Ralph Budd. president of the 

 Great Northern. 



George Lrnnelly, president of 

 the Northern Pacific. 



Howard Elllctt, phairman of the 

 Northern Pacific board. 



Bernard Baruch, New York finan- 

 cier. 



Otto Kahn. New York financier. 



A. F. Wood, president of the 

 University of Maryland. 



Dr. Coffin, president of the Uni- 

 versity of Minnesota. 



Eastern Interests and Industrialists Oppose It 



