President Smith's Address 



(Continued) 



with the return of conditions existing in 

 agriculture during recent years. Should we 

 not keep our eye on the goal of fair and 

 stable prices based upon principles of law 

 and cooperation that will command both re- 

 spect and confidence of all citizens? Would 

 not such a program provide the answer to 

 the problem presented by increasing farm 

 tenancy? .... 



I do not want to be understood as oppos- 

 ing any constructive suggestion to relieve the 

 farm tenancy situation or to provide an 

 actuarially sound crop insurance program. I 

 do mean to emphasize that in our thinking 

 we should not be led astray from the major 

 problems by any suggestions or panaceas that 

 would weaken our determination to sur- 

 mount every obstacle in the way of securing 

 adequate, workable federal laws, and sym- 

 pathetic, practical, effective administration 

 of such laws so as to afford cooperating 

 farmers an opportunity to effectively control 

 the supply of farm products and to feed 

 those products into market channels only 

 upon a basis of parity prices. 



There can be no excuse for any manufac- 

 turer or business leader in America to op- 

 pose efforts of farmers to secure adequate 

 control of their products as they flow into 

 market channels. It was from the experience 

 of manufacturers that the farmers got the 

 idea of control. Even manufacturers do not 

 always maintain prices by effective control. 

 Only last week, the chairman of the board 

 of one of the largest New York banks, in 

 his report to the annual meeting of stock- 

 holders, pointed to the fact that production is 

 running ahead of consumption in many lines 

 and warned that a similar situation in 1919, 

 1920 and 1921 resulted in a collapse of 

 prices. He also said it i.s easy to forget, but 

 we should recall 1919, 1920 and 1921 when 

 pyramiding of orders caused over-production 

 and subsequent collapse of commodity and 

 inventory prices which resulted in heavy 

 losses. . . . 



Within our state, there are many policies 

 of government in the making of direct inter- 

 est to the farmers of Illinois. We have the 

 continued revenue problem upon which the 

 organization has a definite and well under- 

 stood position. We shall continue to work 

 for constructive revision of the Revenue 

 Article of the Constitution. It appears the 

 acute tax situation existing in some of the 

 metropolitan and mining areas of the state, 

 which is requiring increasing attention of 

 citizens as well as officials, is bringing their 

 thinking more nearly into line with the posi- 

 tion of the Illinois Agricultural Association. 

 We should continue to work with all of- 

 ficials and representatives of civic interests 

 for the early submission of a proper amend- 

 ment to the Revenue Article of the Con- 

 stitution, as a necessary basis for the cor- 

 rection of inequalities and a sound solution 

 of the general tax problem. 



The problems presented by unemployment 

 will undoubtedly receive continuing atten- 

 tion by the General Assembly. This prob- 

 lem is of major interest to the farm people 

 of Illinois, both from the standpoint of 

 revenue required and the fact that many 

 farmers continue on relief rolls. It is dif- 

 ficult to reconcile the recurring statements 

 of public officials about the steady absorp- 

 tion of the unemployed by industry and the 



continuing demand for maintenance or in- 

 crease of funds to meet unemployment con- 

 ditions. 



Any attempt to reach conclusions from the 

 study of reports emanating from different 

 official and private sources leads one only 

 into greater confusion. The farm people of 

 Illinois and of the nation want to see every 

 deserving citizen and family properly fed and 

 reasonably housed, but it appears that the 

 present trends in relief are toward fastening 

 upon the tax-payers of the state and nation 

 a permanent system of doles. 



We have recently heard much about social 

 security legislation and have been told farm- 

 ers were exempt. If I understood the pro- 

 visions of this law, farmers are only exempt 

 from its ultimate benefits but not exempt 

 as to its ultimate cost. We, as farmers, 

 should take more interest in guiding the 

 course of such laws. 



The Illinois Agricultural Association sup- 

 ported and secured the enactment of legisla- 

 tion placing upon local communities limited 

 responsibility for taking care of the unem- 

 ployables before being eligible for state as- 

 sistance. It was believed local responsibility 

 and administration of relief was essential to 

 more intelligently distinguish between the 

 worthy and the unworthy, and was in the 

 interest of economy. In spite of some weak- 

 ness and perhaps failure, experience discloses 

 no reason for a change in our position. The 

 present plan may have some administrative 

 difficulties, but such difficulties are much 

 more than outweighed by the main objective 

 of this legislation. It is imperative that 

 representative citizens in each community 

 take greater interest in seeing that the pres- 

 ent law is properly administered by local 

 officials and that prompt and adequate re- 

 ports of the conditions prevailing within 

 each community are currently made to the 

 proper representatives of the state. 



I further believe we should have a com- 

 prehensive survey of unemployment condi- 

 tions throughout the state under the direc- 

 tion of representative citizens of each county 

 rather than under the control and direction 

 of professional social workers. Reports in- 

 dicate that in entirely too many cases pro- 

 fessional authority is unduly interested in 

 the maintenance of relief rolls rather than in 

 a reduction of relief rolls to the lowest 

 justifiable minimum. 



It appears that some type of a Drivers' . 

 License law will be enacted by the present 

 General Assembly. Such a law, if solely 

 confined to the purposes of safety, seems 

 justified. Most of the proposals suggested 

 thus far require Drivers' License fees. 



The steadily increasing motor revenues 

 make unnecessary any provision for added 

 revenue in connection with a drivers' license 

 law. The increasing hazards upon the high- 

 ways of the state as reflected by the shock- 

 ing losses of life and property seem to re- 

 quire not only licensing of drivers, but more 

 strict enforcement of law and adequate polic- 

 ing of highways. Intoxicated drivers are a 

 greater menace to life and property than any 

 highwayman or crook operating in the state. 

 They should be forever removed from the 

 highways of Illinois. If our highway laws 

 are to be properly enforced, a non-political 

 merit system of state police should be in- 

 augurated. 



You are well informed as to the farm-to- 

 market road legislation enacted by the last 

 session of the General Assembly and vetoed 

 by the Governor. You will remember that 

 this legislation dedicated definite sums of 

 money for the building of this type of 

 highways and insured equity in construction 

 as between all counties of the state. While 

 reports indicate rather substantial improve- 

 ment of rural roads during 1936, it is 

 disclosed that a large portion of this im- 

 provement was financed either locally or with 

 federal funds expended under the Works 

 Progress Administration. If the require- 

 ments for secondary and other road-building 

 in rural areas are to be met, it becomes 

 increasingly apparent that farmers must 

 again gird their loins and fight for the enact- 

 ment of legislation requiring a substantial 

 increase in the mileage of such roads con- 

 structed by the Highway Division of the 

 state, and also requiring liberalization in 

 the specifications for rural road construction, 

 so that moneys appropriated for this purpose 

 may result in much greater mileage than 

 the present specifications will permit. 



School legislation will occupy a prominent 

 place in the consideration of the present 

 General Assembly. We are informed that 

 the educational commission authorized by 

 a recent session of the General Assembly 

 will soon make its report. It appears from 

 information reaching the Illinois Agricul- 

 tural Association that this report will recom- 

 mend the enactment of legislation authoriz- 

 ing the appointment of a permanent state 

 educational board with wide powers to 

 govern the elementary and high schools of 

 the state. It is said the report will rec- 

 ommend that the State Commission have 

 full power to readjust any school district 

 line within the state upon the petition of 

 25 or more legal voters of any school dis- 

 trict or districts. This appears to be a step 

 in the direction of enforced consolidation 

 of rural schools. 



It is not my purpose to criticize this re- 

 port or to indicate opposition to consolidated 

 schools, but rather to urge parents, tax- 

 payers and citizens generally to be on their 

 guard to protect the rightful interest of the 

 respective school districts of the state, at 

 least until such time as the Revenue Article 

 of the Constitution may be amended and laws 

 enacted insuring equitable taxes and until 

 such time as we enjoy an extensive farm-to- 

 market road system sufficient to insure safe 

 and regular attendance at school of all rural 

 children 



The continued improvement in agricul- 

 ture and other business of the nation was 

 reflected in all activities of the Association 

 and its associated companies during the 

 year. The Illinois Agricultural Association 

 enjoyed the largest paid membership in more 

 than a decade. The Treasurers report dis- 

 closes that expenses connected with all ac- 

 tivities of the organization were well within 

 its income, with a substantial increase in 



its reserve account (At this point 



Mr. Smith briefly reviewed the 1936 accom- 

 plishments of each associated company.) 



The respective business service corpora- 

 tions for which I have made this brief re- 

 port have been organized, financed and con- 

 trolled by the County Farm Bureaus and the 

 Illinois Agricultural Association. Their re- 

 spective records of service and sound finan- 

 cial condition constitute the best recommen- 

 dation anyone could offer for increasing 

 interest and confidence in them, and their 

 continued development by the Farm Bureau 

 members of the state. They all operate under 

 the general management of the Illinois Agri- 

 cultural Service Company, usually termed 



(Continued on page 32) 



L A. A. RECORD 



