EDITORIAL 



On Gas Tax Diversion 

 C"^^^ HE report of the Federal Bureau of Public Roads 

 ^ — ^ that last year $146,449,71 1 of gasoline taxes paid 

 ^J by motorists were diverted to other than road 

 funds is of more than passing interest to farmers. 



The very existence of the farmer in this modem age 

 is dependent on his ability to use the roads the year 'round. 

 When the principle of diverting gas tax funds to other 

 uses was initiated in Illinois several years ago the lAA 

 immediately voiced a vigorous protest. True the money 

 was pledged to pay off poor relief bonds and interest. But 

 poor relief is a responsibility of all the people having 

 ability to pay — not the motorist alone. Last year ap- 

 proximately 13 per cent of the net income of $33,500,000 

 from the gas tax was committed to pay off interest and 

 principal on the $50,000,000 of poor bonds. 



There is little, if any, excuse for robbing the road 

 fund created by gas taxes. The gas tax is a fair tax as- 

 sessed against the man who uses the roads. He should get 

 the benefit. The money he pays should not be used to sup- 

 port other government institutions and purposes which 

 benefit everyone and should be supported equitably by all 

 forms of wealth. 



Gas tax diversion is rank discrimination against the 

 man who pays the tax. It is discrimination against farmers 

 who help pay the tax and are in dire need of improved 

 toads. Such practices as gas tax diversion reveal the need 

 for constant vigilance and influence of militant organization 

 to secure fair taxation and equitable administration of laws 

 affecting farmers' interests. 



Permanent Form Program in Making 



C"^^ HE Supreme Q)urt issue for the moment has side- 

 ^''*— ^ tracked consideration of legislation to secure con- 

 -/ trol of basic crop surpluses and parity prices on a 

 more permanent basis. But such a federal measure re- 

 mains the chief interest and objective of the Illinois Agri- 

 cultural Association and the American Farm Bureau Fed- 

 eration. 



The leaders of our organization have been in frequent 

 conference with Secretary Wallace and Administrator 

 Tolley of the Soil Conser\'ation Program to keep them ad- 

 vised of organized farmers' objective of a permanent plan 

 to maintain parity prices for farm products. Protection 

 against seasonal crop surpluses is a vital part of the plan. 



The Farm Adjustment Act of 1937 is now in its 

 preliminary form. The Secretary of Agriculture and the 

 President are following their practice initiated in 1933 of 

 asking representatives of organized agriculture to write the 

 program for their industry. The fact that farmers have a 

 larger voice in deciding the agricultural policies of state 

 and nation means increased responsibility and the need for 

 sound thinking. The situation calls for wisdom to form- 

 ulate policies and legislation that not only promote agri- 

 cultural welfare but also the best interests of the entire 

 nation. 



Soil Conservation and Prices 



OIL conservation committeemen are reporting ex- 

 cellent attendance at township meetings and great 

 interest in the 1937 program. More and more 

 farmers, they state, are coming around to the use of legumes 

 and soil building crop rotation systems. More livestock, 

 higher crop yields and lower cost production are seen as 

 after effects of the program. 



Strictly grain farmers who have had little or no live- 

 stock may be inclined to get some cattle and sheep to con- 

 sume the legume hay and grass grown on soil conserving 

 acres. In time this may lead to a greater supply of beef 

 and lamb and somewhat lower prices. But if the program 

 reduces production costs, the grower will still be in a posi- 

 tion to make a profit. Increasing buying power in the in- 

 dustrial centers is leading to heavier demand for meat 

 and dairy products. There is a good market today for 

 larger quantities of dressed meats than are now available in 

 this country as seen by growing imports of Polish hams and 

 Argentine canned beef. 



Whether or not the soil conservation program will 

 succeed in preventing glutted markets and low prices for 

 basic farm products, as well as in maintaining soil fertility, 

 remains to be seen. For the time being, at least, farmers 

 are determined to work together to maintain farm prices 

 at approximate parity. We hope the days of blind, hap- 

 hazard production without regard to price levels are gone 

 forever. 



Hiking Prices ' 



^*^^ HE building industry in this country is a typical 

 ^— ^ example of what happens when prices get out of 

 ^^ line. The public quits buying. Already it has be- 

 come apparent to observers that a promising building boom 

 has been nipped in the bud by unreasonable wage demands 

 and sharp price advances in lumber and other building 

 materials. A few months ago new building promised to 

 make deep inroads on unemployment in 1937. But that 

 hope is going sour. From all directions come reports of 

 cancelled contracts for new homes and other structures. 

 Remembering what happened in '29, thinking persons are 

 not willing to incur huge debts simply because they can 

 borrow the money from the FHA or some other source. 

 Recent sharp advances in all kinds of industrial goods and 

 services are tending to wipe out the parity position of farm- 

 ers. The President's recent warning is timely and should 

 be heeded. 



AAA Is OK 



C"^^ HE Brookings Institute finds that "The AAA is 

 ^ — ^ a desirable addition to the nation's economic in- 

 ^^_y stitutions," and urges its continuation "in order 

 to assist farmers in adjusting their industry to changing 

 technical and commercial conditions and to cushion the 

 shock of such disasters as drouth and flood." 



This finding by a highly respected economic author- 

 ity, in a sense, is endorsement of the principles organized 

 farmers have been fighting for since the McNary Haugen 

 movement was launched 1 5 years ago. i .:• , .; 



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L A. A. RECORD 



