'f 



Editoria 



1 



a 



.<"- .- 



r 



Let's Be Reasonable 



J (^^ LEASE give us the names of counties nearest us 

 W^ that would be likely to havf hay, oats, and corn for 

 sale," writes the president of the Wilson County 

 Farm Bureau, Lebanon, Tennessee. 



Drouth has struck hard in many sections of the country 

 again, notably the south, the northwest and even sections 

 of Illinois. There will probably be no national shortage of 

 feed but prices already are advancing as a result of short 

 crop prospects. 



A fact that many have overlooked in their indignation 

 over imports of farm products following the 1934 drouth 

 is that substantial quantities of these imports consisted of 

 livestock feeds. Granted that imports of Argentine com, 

 for instance, checked the advance of com prices a year 

 ago, let's not forget that farmers were buying as well as 

 selling corn. And some of the buyers were Illinois farmers. 



When com, oats, and barley were coming in over our 

 tariff wall, prices were comparatively high. Farmers were 

 not complaining about imports in May, 1935, for instance, 

 when corn averaged 84.8 cents a bushel, oats 49.8 cents, and 

 wheat 87.8 cents at local farm markets. Some long-headed 

 farmers believe prices can get too high as well as too low. 



If drouth continues and grain prices advance to near par- 

 ity or beyond, let's not be alarmed about com and oats im- 

 ports. Such imports may save some poor brother less fortu- 

 nate than those of us with crops to sell. 



Co-operation Wins Out 



THE most significant phenomenon of the depression 

 as yet unrecognized, is the growth of the co-operative 

 movement, says B. Fowler in his book "Consumer 

 Cooperation in America." 



Last year's volume in co-operative purchasing reached a 

 new high of $365,000,000. The movement has been growing 

 since 1921, although it took the depression to spur it on to 

 its present rapid expansion. It is, of course, largely a rural 

 growth so far. It has been given great impetus by the co- 

 operative marketing groups, of which there are now over 

 10,000. Co-operative purchasing is a natural off-shoot. 



The Danes have carried co-operative market'ng much 

 farther than we have in America. In Denmark, for each 

 dollar's worth of produce bought, the farmer in 1933 got 

 63.4 cents. In the United States in 1934, for each dollar's 

 worth the farmer got 38.5 cents. The incentive to co-opera- 

 tive marketing is plain; co-op. buying as plainly follows. 



Mr. Fowler tells the story of the gas and oil co-operative 

 at Albert Lea, Minnesota. With a membership of 1,400 and 

 a total paid-in capitalization of $14,000, the group now has 

 a reserve of over $100,000. Formed in 1925, it has returned 

 more than $650,000 in customer dividends. 



The big oil companies, of course, could not be expected 

 to take the challenge of co-operation meekly. They began 

 to slash prices that this rival organization, with no back- 

 ing of huge capital funds, would give up the ghost. They 

 tried forcing the <:o-operatives to operate at a loss, and thus 

 end their existence. 



Cent by cent the co-operative met the price cuts until it 

 reached the rock bottom of delivery cos*s. The private 

 companies cut still further and waited for the co-operative 

 to expire. But the co-operative refused to react as had the 

 small independent dealers. 



The local co-operative society called a meeting of its 

 consumer members. At this meeting, the co-operators re- 



26 



viewed their case. They decided to close their gas station 

 temporarily. The con-umer members were advised to buy 

 all gas and oil from the privately owned stations as long as 

 they sold below cost of tank car delivery. When the com- 

 panies saw fit to put the price of gas back on an economic 

 level they would re-open their co-operative station. By 

 this shrewd and logical action, they put the big oil 

 company out on a limb. In order to keep the co-operative 

 station closed, the big oil company would have to continue 

 to operate at a loss. Whatever it did, the co-operatives had 

 it beaten, for the co-operative represented a group who had 

 gone into business to eliminate the excess profits on gas. 



The big oil company threw up its hands and conceded the 

 co-operative victory in that encounter. When it did, the co- 

 operative station opened with its trade intact. The tem- 

 porary closing had not affected its business. 



Foreign Trade Gains 



No THINKING farmer wants to see crop acreage and 

 production in this country permanently reduced to 

 the needs of the domestic market. Therefore, the re- 

 cent advance in foreign trade is good news to producers of 

 com, hogs, soybeans, wheat, cotton, tobacco, and fruits and 

 vegetables. The prices of all these crops are vitally affected 

 by foreign demand. German and Danish importations of 

 soybeans, for example, are a leading factor in advancing 

 prices for this crop. Bbcports of cotton, tobacco and fruits 

 show the largest increases among farm products. More 

 impressive gains have been made in exporting automobiles, 

 refrigerators, oil, machinery and certain chemicals which 

 means more jobs for American workers, increased purchas- 

 ing power in the industrial centers, and a better home 

 market for farm products. 



These industrial exports indicate that the items men- 

 tioned are being produced efficiently. They need no protec- 

 tion. They are competing successfully in the markets of 

 the world. We can't say as much for a lot of other indus- 

 trial items. High grade cameras with fine lenses are an 

 example. The import duty is 45 per cent ad valorem. A 

 practical monopoly exists in the camera business in this 

 country. One company makes most of them. If Germany 

 could sell us more of her fine cameras, she would likely 

 buy more of our pork, lard and soybeans which we produce 

 efficiently. ■ ■' ., ' ,, . ' 1, ■ 



Economic Equality 



News item: — "Standard Oil Company of Indiana 

 will advance tank-wagon and service-station 

 prices of gasoline and napthas V4 cent a gallon at 

 all points in Illino's and nine other states effective 

 Friday mornine, it was announced today. 



"The advance will apply to both normal and 

 subnormal prices. Kerosene and fuel oil will not 

 be affected. 



"The states in which the price change will be 

 made are Michigan. Indiana. Illinois, Wisconsin, 

 Minnesota, Iowa, Missouri, Kansas and the Dako- 

 tas. 



"The new retail prices in Chicago will be 15.5 

 cents for third grade, 16.5 cents for regular, and 

 18.5 for premium, tax included." 



OF COURSE other oil companies will follow suit. That's 

 understood. 



When farmers get organized to the point where 

 they can "announce" a 50c or $1 increase in the price of 

 fat steers or hogs, or other products "effective Fridav morn- 

 ing" we'll have real economic equality in this country. 



I. A. A. RECORD 



inllii 



^eath< 

 Ihe S 



Help: 



Farm 



HiJ 



^You'll 

 Be 



i Bi( 



f Why 

 ^ Farm 

 K Men 

 Priz< 



