against the provisions of law. I know 

 of no thinking person who will deny 

 that surpluses of basic crops seriously 

 depress prices. In nearly every case, 

 during the past fifteen years, where 

 substantial annual surpluses have oc- 

 curred, we have found that the total 

 value of the larger production was 

 much less than the value of a smaller 

 or balanced production 



Efforts are now being made to seri- 

 ously amend if not repeal the AAA 

 of 1938. To take its place, what is 

 advocated by critics of the present law 

 — anything new.'' No! Only revived 

 suggestions that in the light of mod- 

 ern day conditions have been found 

 wanting. They propose, first, the dis- 

 continuance of all efforts now being 

 made to control surpluses and to ad- 

 just production. As a substitute there- 

 for, they propose to permit each farmer 

 to produce what he pleases and to 

 make government payments to farmers 

 covering part or all of the difference 

 between market prices and parity 

 prices on that portion of each farmer's 

 production required for the domestic 

 market. Under this proposal, surpluses 

 would flow into World markets at 

 World price levels. 



Such a program is enticing only to 

 the unthinking person. It sounds sim- 

 ple but it is not. To make such a pro- 

 gram work equitably for the farmers 

 of the corn belt and of the Nation, it 

 would require a degree of regimenta- 

 tion never dreamed of by the respon- 

 sible farm leaders in the Nation .... 

 Give Active Support 



If we are to preserve and improve 

 the AAA of 1938, it now appears neces- 

 sary for all of us to become more ac- 

 tive in support of efforts to bring 

 about a much better understanding on 

 the part of all farmers of the purposes 

 of and the opportunities under the law. 

 We should quit quibbling over little 

 things except such as are necessary for 

 the correction of all errors whether 

 major or minor that affect the rightful 

 interests of all farmers. We should 

 clearly distinguish between the high 

 purposes of these provisions of law 

 and errors of administration, whether 

 large or small. We should use every 

 proper influence of the County Farm 

 Bureaus and the Illinois Agricultural 

 Association for the selection of the best 

 qualified men for its fair, effective and 

 economical administration. We should 

 let our Senators and Congressmen 

 know, in no uncertain terms, where we 

 stand regarding either serious amend- 

 ments to or repeal of the AAA. We 

 should let each and every one of them 

 know that their signatures to the round- 

 robin that is circulating in the Congress 

 for the support of the type of new 

 law I have just discussed will be re- 



8 



garded as unfriendly to the best inter- 

 ests of agriculture .... 



I have already stated that the Num- 

 ber One problem confronting farmers 

 is the continued disparity between in- 

 dustrial prices and wages and agricul- 

 tural prices, and that this disparity is 

 the major cause of continued unem- 

 ployment. I go even further and state 

 that it is the Number One problem 

 confronting America. Prosperity can- 

 not be restored until this disparity is 

 removed. It cannot be removed except 

 through the attainment of a fair bal- 

 ance between industrial prices, agricul- 

 tural prices and wages. Neither can a 

 normal opportunity for gainful employ- 

 ment be restored in any other way . . . 



During the last nine years two na- 

 tional administrations, of different po- 

 litical faiths, have been unable to ex- 

 tricate our country from an unprece- 

 dented economic depression. Except 

 for brief periods during these years, 

 nearly one-fourth of all persons nor- 

 mally engaged in gainful occupations 

 have been out of work. Aggregate 

 losses of national wealth and income 

 have reached staggering totals. Mil- 

 lions of people have lost their savings 

 and investments. Other millions have 

 lost their homes, farms and other busi- 

 ness property. Millions of our citizens, 

 after a lifetime of toil and service, are 

 at an age when they can never hope 

 to recover their lost investments or 

 properties. More tragic is the condi- 

 tion of millions of young people still 

 unable to secure employment and still 

 frustrated in their hope and right to 

 establish and maintain homes. 



As never before, the strong arm of 

 National and State Governments has 

 been used against the depression. Huge 

 expenditures have not removed the 

 causes of the depression and have done 

 little more than mitigate its hardships. 

 This expenditure of billions of dollars 

 has unbalanced our national budget and 

 nearly tripled our national debt. 



Many people are coming to believe 

 that the depression and its problems are 

 beyond our power to remedy. We 

 must refuse to accept any such defeatist 

 attitude. The people of the United 

 States have almost unlimited need of 

 goods, improvements and services. We 

 have resources, raw materials, labor, 

 skill and facilities necessary to supply 

 them. What has prevented the em- 

 ployment of our rich resources and 

 skills in such a way as to supply the 

 needs of our people.' If we can an- 

 swer this question we will know how 

 to end the depression. 



During the depression, prices of 

 most industrial products have been 

 maintained substanially at pre-depres- 

 sion levels by control of production. 

 Wage scales have also been maintained 



and in many instances increased by 

 the threat or use of strikes and other 

 devices by union labor. Only agricul- 

 ture continued to produce. The in- 

 evitable result was the piling up of 

 huge surpluses of many of the most 

 important agricultural products and 

 ruinous losses in their values in ex- 

 change for industrial product and ser- 

 vices. 



Have Unbalanced Economy 



National legislation has been help- 

 ful in partly restoring the exchange 

 value of agricultural products. It has 

 not yet established or maintained par- 

 ity prices nor can it do so if present 

 industrial and labor policies are con- 

 tinued. 



We cannot have prosperity as long 

 as we have an unbalanced economy and 

 resulting therefrom twelve or even six 

 million people who are able-bodied and 

 eager for work, but are unable to find 

 it. What must we do to enable them 

 to find it.' Thus far all government 

 policies on this subject have sought or 

 permitted maintenance of present high 

 prices for commodities and present 

 high wages for labor. Is not this a 

 fundamental error.' We cannot in- 

 crease employment without increasing 

 production of industry and lowering 

 the cost of its commodities and the 

 services of workers to a point where 

 there is sufficient purchasing power to 

 buy them. No one can doubt that a 

 decrease of one-fourth in present in- 

 dustrial production would increase 

 prices of industrial products, decrease 

 employment, purchasing power and 

 consumption, and greatly intensify the 

 depression. Nor can anyone doubt that 

 an increase of one-fourth in present 

 industrial production would decrease 

 prices of industrial products, increase 

 employment, purchasing power and 

 consumption, and go far to relieve, if 

 not end, the depression. 



How can we achieve a balanced econ- 

 omy.' It can be done only with cpmplete 

 and continuous cooperation by agriculture, 

 by all industries, including manufacturing, 

 transportation and distribution and by labor, 

 under the encouragement and leadership of 

 the Federal government. Neither agricul- 

 ture, nor labor, nor any industry should be 

 given or permitted to retain any selfish ad- 

 vantage. They will all have real sacrifices to 

 make but will gain more than they lose . . . 



Government itself must cooperate by cut- 

 ting off all competitive or unessential ac- 

 tivities, and greatly reducing its costs. 



If the above objectives can be achieved, 

 the resulting balance and stability in all 

 branches of industry and in employment 

 will provide additional jobs for millions 

 of people now idle, and the National Gov- 

 ernment can balance its budget .... 



I would be one of the last to criticize 

 any high purpose that was directed toward 

 temporary or permanent relief in our pres- 

 ent difficulty. There are few farmers who 

 will not support any reasonable policy of 

 Government to provide food, reasonable 

 (Continued on page 12) 



lpl.Pl. record 



