President Smith Keynotes 



Convention 



Q J comi 



I HEN we adopt policies 

 ' icli will maintain farm 

 commodity prices at tair 

 levels, we will have found the key to 

 national welfare, contentment and pros- 

 perity." 



So keynoted President liar! ( !, Smith 

 in his address to the 23rd annual lAA 

 convention in Springfield, January 27. 

 "Leaders of America," he said, "are 

 now struggling to find ways out of 

 what is termed a business recession.' 

 A disease can be cured only through 

 the removal of the cause. A business 

 recession can be placed in reverse only 

 by the removal of its cause. One, if 

 not the chief cause of the business re- 

 cession, was the sudden and serious 

 break in farm commodity prices. If so 

 why not remove the cause by placing 

 farmers in a position whereby through 

 co-operation they can secure and main- 

 tain control of surplus supplies of basic 

 products of the soil. Only by so doing 

 can the price level of that portion of 

 the production needed to meet market 

 demands bring satisfactory returns. 

 Only through satisfactory prices tor 

 farm products can farm income be sta- 

 bilized in fair balance with the income 

 of others. Only by maintaining a f.ilr 

 balance can we have a reasonable de- 

 gree of permanent prosperity for all. 

 So long as we permit a system to exist 

 that results in wide fluctuations of the 

 values of the commodities that largely 

 constitute new wealth, just that long 

 will we have periods of business reces- 

 sion." 



Mr. Smith challenged American in- 

 dustry and American labor to relinquish 

 their controls over production, prices 

 and wages to permit the restoration of 

 tree competition. He said : "If Amer 

 ican business and American labor will 

 relinejuish the use of artificial instru- 

 mentalities and permit the restoration 

 ot free competition, organized Ameri- 

 can agriculture will no longer request 

 the support and cooperation of the 

 federal government in striving for its 

 chief objectives: parity farm prices with 

 a balance between .igriculture, industry 

 and labor. 



"Our battle is not one of aggression," 

 Mr. Smith continued, "it is one of 

 self-defense, of rightful repossession 

 When completely organized agriculture 

 will still be in the minority but it can 

 be a very powerful minority in pre- 

 serving American institutions that have 



PRESIDENT EARL C. SMITH 

 "Our battle is not one of aggression . . . 

 it is one of self-defense." 



proved their worth, m putting down 

 special privilege, and in securing .m 

 equitable distribution ot the national 

 income. 



Since the turn ol the eenturv. both 

 American business a n d organized 

 .•\meriean labor, with the sanction or 

 the approval of government, have se- 

 ciireil an ever-increasing portion of the 

 national income without regard to the 

 relative position of agriculture. VC^e 

 should not forget that maladjustment 

 between agriculture and these- groups 

 h.is resulted in large part from federal 

 laws, tariffs, corporate controls and 

 agreements and labor monopolies or re- 

 strictions. Equitable readjustment must 

 be effected at an early date if any rea- 

 sonable degree of prosperity is to be 

 assured and the essential principles of 

 a democracy preserved. 



My judgment dictates that Americas 

 true interest would be better served 

 through a larger output bv industry and 

 such reduction in the priie of industrial 

 p'oducts and the standards of pay for 

 personal service as is nccessan- to bring 

 the products of industry, the prodiicis oi 

 the farm and the personal service of 

 workers into parity position 



Knowing something of the ten.uious 

 ness ot American industrial, business and 



Copies of Mr. Smith's complete 

 printed address may be had free by 

 writing Department of Information, lAA. 

 608 So. Dearborn St.. Chicago. 



labor leaders in holding to their piesent 

 price an<l wage standards, I cannot be 

 come optimistic as to the possibilities ot 

 securing a true balance betv\een agricul 

 tare, industry and l.ibor in that direction. 



Setting forth the policy of the or 

 ganization on proposed incre.ises in 

 freight rates and wage and hour legis- 

 lation, Mr. Smith asserted that organized 

 larmers "must aggressively resist all 

 efforts by others that will result in widen 

 ing the present disparities l->et\\een farm 

 prices and other prices." 



Referring to the proposed 1 "i per cent 

 increase in freight rates, the full train 

 cre« bill and "O-car train limitation 

 legislation, he said, "all of thc-se things 

 .ind others fall into the category that 

 would widen present disparities rather 

 than bring more closely into balance 

 agriculture, industry and labor." 



.Mr. Smith cited the slatemc-nts of 

 government economists to the etfect that 

 if a -10 cent per hour minimum w.ige 

 were applied to agriculture, only to the 

 hours necessary tor production and har 

 \esting, the cost of producing corn would 

 average around 'XS cents per bushel . 

 wheat SI >^ per bushel; cotton 22' _> 

 cents per lb., and so on. "\X'hile we in 

 no way oppose fair w.iges for labor or 

 the justice of investors receiving a reason- 

 able return upon capital, it certainly 

 appears that the very life blood of Ameri 

 can agriculture depends upon the removal 

 of the present maladjustment." 



.Mr Smith gave lour ma|or causes for 

 the present business recession which 

 began last summer. Labor unrest, high- 

 er industrial prices, lower farm prices 

 and congressional neglect, he said, con- 

 stitute the major factor that changed 

 America from a nation with faith, ho|x- 

 and confidence early in the year, to one 

 of concern, fear and disa|''j^ointment as 

 we .ippro.uhed the close ot 193?. 



He asserted that the resjsonsibiliiy 

 for the sharp drop in firm prices and 

 business activity rests with the Agricul 

 lural (.ommittees of the two Houses of 

 (.ongress and in a lesser degree with 

 the Congress as a whole. 



The failure ot (ongress to provide 

 farmers with the opportunity to with- 

 hold from market and control iinpend 

 ing surpluses of basic farm eommodi 

 ties, was followed by heavy declines in 

 the price levels of cotton and corn." 

 Mr. Smith contended that if the Con 

 gress had acted earlier in 193" to pass 

 legislation proposed at that time, a 



FEBRUARY. 1938 



