EDITORIAL 



Is Cooperation The Answer? 



^"^w HE new government inquiry into monopoly and 

 ^— ^ price fixing suggests the thought that what, if any- 

 ^^ thing, will be accomplished when it is proved that 

 there has been more or less rigid price and production con- 

 trol in many lines of industry. 



Such a finding will only corroborate what many per- 

 sons feel they already know from observation. 



Even a casual study of the prices of manufactured 

 articles produced by a comparatively few corporations often 

 shows striking uniformity. 



Getting evidence to prove price fixing may not be so 

 difficult, but doing something worth while about it is a far 

 more important and knotty problem. 



Can we look to the cooperative movement for a solu- 

 tion? Albin Johansson, president of the Cooperative Union 

 of Sweden, now visiting here, points to what has been done 

 along this line in his country. 



"Sweden has found the answer to its monopoly prob- 

 lem by means of cooperation," Mr. Johansson is quoted as 

 saying in Advertising Age. Well over 30 per cent of the 

 families in the country belong to the Union. The coopera- 

 tives account for 20 per cent of all retail trade in lines in 

 which they are represented. These include margarine, rub- 

 ber, flour, electric light bulbs, linoleum and pottery. The 

 next major objective is the garment trade. 



"Cooperatives spring up only when the consumer de- 

 mand for lower prices becomes so strong that it can no 

 longer be ignored," Johansson said. 



The latest drive against monopoly, he explained, was 

 completed only two weeks ago when the linoleum industry 

 was forced to reduce prices 15 per cent. This was accom- 

 plished merely by making it clear that the union would 

 start production on a competitive basis unless prices to con- 

 sumers were reduced. 



"The consumer movement has leveled off but not en- 

 tirely wiped out fluctuations in the business cycle," Johans- 

 son said. "Severe depression comes when industries charge 

 high prices and make big profits. Cooperative industries 

 have not only forced private industry to reduce prices but 

 have increased consumer purchasing power and almost com- 

 pletely wiped out unemployment." 



The Lesson of 1932 



AYS the Chicago Tribune in an editorial entitled 



"Our Booming Trade In Corn": 

 * "Ij the restrictions on corn planting imposed 

 this year succeed in reducing our corn pro- 

 duction, the farmers and all the others who 

 play a part in the game will suffer needless- 

 ly." 

 Farmers would be inclined to give some consideration 

 to such argument, were it not for the disastrous experience 

 of 1932 when there was no corn acreage adjustment pro- 

 gram, no surplus control, nothing but the glorified policy 

 of unlimited, planless production for agriculture (but not 

 for others) with every man for himself and let the devil 

 catch the hindmost. 



The do-nothing policy brought on the ruinously low 

 prices in 1932, and bankrupted thousands of farmers with 



10c corn. This was all the result of a bumper crop that 

 came within less than 94,000 bu. of making a three 

 billion bushel yield. 



Com growers welcome the recent increased demand 

 abroad for American corn made possible by the short Ar- 

 gentine crop. But history again discloses that American 

 farmers can't bank very heavily on the export market to get 

 a reasonable price. If the crop now growing proves to be 

 as bountiful, if not more so, than that of last year, there is 

 likely to be widespread regret that the lesson of 1932 was 

 not better learned. 



How Put Men to Work? \ 



M N ENTERPRISING printer is out with a series 

 J lL of stickers and streamers entitled: "Sales Mean 

 ,^^^7 Jobs — Buy What You Need Now — Put 

 Men to Work." 



This slogan states a fundamental economic truth. Buy- 

 ing means greater consumption, more jobs, more men at 

 work. The leading justification for a farm program and 

 parity farm prices is that they will accelerate farm buying 

 and create more jobs in the industrial centers. 



When farm buying lags because of inadequate prices 

 and reduced farm income, there are millions of idle men 

 everywhere. The thing that will stimulate buying and put 

 men to work, however, is not slogans, nor exhortation but a 

 general slash in prices of all sorts of manufactured com- 

 modities, materials and building trade wage scales which 

 thousands rebel against by the simple method of not buying. 

 It will take such a wholesale reduction or a substantial in- 

 crease in farm prices to reestablish the necessary balance so 

 essential to normal trade and prosperity. 



August 



^^^^ HE month of August annually holds much of in- 

 ^^-^ terest for farm people. The harvest is well under 

 ^_y way, if not completed. There is time for relaxa- 

 tion from the strain and bustle of spring plowing, planting, 

 cultivation, spraying, haying, and reaping. We can look 

 forward to the county fair, the 4-H Club shows, the State 

 Fair, the Farm Sports Festival. And many find time during 

 this month or September to break away for a week or two 

 from home cares and routine of daily labor. 



These events all help us to live a better balanced, hap- 

 pier life and unfortunate is the person who does not take 

 advantage of the opportunity to add to the joy of living. 



At the county fair and at the State Fair (Springfield, 

 Aug. 13-20) we can compare observations with neighbors 

 from other parts of the county and state. We see what 

 others are doing to improve their crops and livestock. One 

 good idea gleaned from such contacts may be worth more 

 than six months of grinding work at home. 



At the Farm Sports Festival, Champaign-Urbana, Sep- 

 tember 2-3, young people, and older folks with young 

 hearts, get a thrill from wholesome competition in baseball, 

 athletic and folk games, music and entertainment. 



Farm prices are not what they ought to be all along 

 the line but there are some bright spots in the picture. It 

 could be and has been a great deal worse. So let's take 

 time to relax and put more wholesome living into life. 



26 



L A. A. RECORD 



