854 GENERAL FARM PROGRAM 



national income for the 18 years only lacks l^o percent of being exactly 

 seven times the agriciiltm'al income for the 18 years. 



This should prove beyond any question of doubt that the farm 

 dollar is the motive power of our national economic cycle. 



The reason each dollar of farm income creates a dollar of factory 

 pay roll and generates into $7 of national income is quite simple. 



All wealth must come primarily from Alother Earth; the soil and 

 streams and agriculture produces approximately 65 percent of all our 

 new wealth. While the American farmer purchases approximately 

 40 percent of all the products of industry, he is therefore the greatest 

 consumer and industries' biggest and most reliable and permanent 

 customer. 



Using the year 1940 as an illustration, American farmers had 10 

 times the capital investment of ovu' steel and automobile industries 

 combined, and employed ten times more labor. This should be self- 

 evident that agriculture exerts a greater influence upon om- economy 

 than any other factor. 



The farm dollar generates the steam for our dynamic free economy 

 expanding as it does into $4.25 in retail sales and ultimatc>ly shows up 

 as $7 in our over-all national income. 



Agricultiu"e being our basic industry, the agricultm'e dollar becomes 

 the key to our national prosperity. Therefore, the Nation prospers 

 only when the farmer prospers. 



America must remain solvent. We must retain prosperity. 



To do this we must retain farm income at a high Iwel. Low farm 

 prices will result in depression. Depression means bread lines and 

 unemployment with a severe drop in national income, financial chaos 

 and fertile soil for connnunism. 



We the United Farmers of America, Inc., are not seeking any special 

 benefits or privileges. We are concerned about the future of America. 

 Therefore, we ask that the economy of this Nation be pressrved. 



In 1948 farm income was about $33,000,000,000 and the national 

 income was approximately $247,000,000,000, which again proves that 

 national income is approximately seven times the total of all those 

 who farm. 



If the Government is to collect enough taxes to support the Federal 

 expenditures, then our total gross farm income in 1949 should be no 

 less than $35,000,000,000; this will result in a national income of 

 approximately $25,000,000,000; any less wih result in a shortage of 

 tax funds. Remember, the people pay taxes to support the Federal 

 Government. And the people pay taxes on their net income, not 

 their gross income. 



According to press reports during the past month of February we 

 had 3,000,000 unemployed. Why? I heard one radio commentator 

 i-emark that due to the recent slump in farm prices, he estimated a 

 loss of $3,300,000,000 in farm income. This resulted in cancellation 

 of millions of dollars worth of industrial goods for farm use. Taking 

 this into consideration, does this not bear out the fact that as the farm 

 income declines, so does factory pay roll to a like amount? This 

 recent slump amounted to a loss of approximately $23,000,000,000 in 

 national income. This is, indeed, a matter that requires the attention 

 of every intelligent Ameiican citizen, and we, the United Fax-mers of 

 America, Inc., recommend that Congress recognize the natural eco- 

 nomic law which results in the national income being approximately 



