1110 GENERAL FARM PROGRAM 



For example, in 1939 the gross farm income was approximately 

 $10,000,000,000, we had a mitional income of $72,500,000,000 and 

 the public spent $15,900,000,000 for food. In 1948 the gross farm 

 income was $32,500,000,000, our national income approximately 

 $225,000,000,000 and the public spent $48,800,000,000 for food or 21.8 

 percent of their income in both years. 



In 1948, however, because of the increased per man production as 

 compared to 1935 to 1939, the consumer received approximately 15 

 percent more food for the same percentage of income. The simple 

 facts are that the real cost of living is lowest when the farmer receives 

 an average of parity for sufficient production to fully employ our labor 

 force. Until this committee realizes that simple fact, the various 

 pressure groups will create a state of confusion that will make sound 

 farm legislation an impossibility unless the committee has the courage 

 to force the public to pay the farmer the price ho must have if the 

 United States is to avoid bankruptcy and chaos. 



In connection with what I have stated up to this point, I want to 

 give you a brief picture of two other segments of our economy, total 

 wages and salaries and retail sales volume, to prove that these groups 

 did not suffer from the level of farm prices that prevailed in 1947-48. 



In 1939 retail sales were approximatelv $42,000,000,000 and in 1948 

 thev totaled approximately $130,000,000,000. On the other hand, 

 total wages and salaries in 1939 were $45,000,000,000 and in 1948 

 they approximated $137,000,000,000. You will note the balance be- 

 tween the rise in retail sales and total wages. This is the natural 

 result of the laws of exchange which govern our economy. Wages go 

 into the price of goods and wages are the market for goods. They 

 have to be in apjjroximate balance if trade is to continue. 



I might also point out that in the past 20 years, in spite of all the 

 legislation, depression, war, and reconversion, these ratios in 1929, 

 1939, and 1948 were in almost exactly the same balance. 



Starting now with the basic assumption that society cannot afford 

 not to pay the farmer an average of parity, without having society 

 suffer in proportion, what can we do about it? Theoretically we have 

 a problem such as that of law and order. Everyone should be a good 

 citizen and a police force should therefore be unnecessary. But time 

 has proved that we need a police force. 



In the same way if society wants to eat, live, and work, it must be 

 compelled to pay its board bill. Society, having the facts properly 

 placed before it should coo])erate to maintain an average of 100 per- 

 cent of parity for agriculture, thus in tui'U avoiding the need of having 

 a policeman on every man's farm and in every market place. 



Stated simply, if society is willing to pay the farmer at the rate of 

 $2.20 per bushel for wheat and 80 cents per pound for good steak, we 

 can have a national income of $225,000,000,000, a total pay roll of 

 approximately $135,000,000,000, and a retail sales volume of about 

 $130,000,000,000. This would mean prosperity. 



If, on the other hand, society, in its desire to obtain cheap food, 

 insists that we have $1.10 wheat and 40-cents-per-pound beef steak, 

 then society must accept one-half as much in wages and have only 

 one-half as much retail sales volume, only one-half of the 1848 national 

 income, bankruptcy, and imemployment. 



With a full realization that we cannot afford not to pay the agricul- 

 tural industry an average of 100 percent of parity, what steps can be 



