FARM BOARD TO FARM STRIKE 4 11 



the Farmers' Equity Union for the purpose of formulating plans for the 

 creation of the national marketing agency. 18 The building of this ma- 

 chinery was in line with the views of Hoover, who as Secretary of Com- 

 merce had shown his dislike for wasteful methods of competition. 19 



The Farm Board took steps to aid the wheat growers even before the 

 Farmers' National was incorporated. In August they were advised not to 

 rush their wheat to market, and the Board indicated that it was in sym- 

 pathy with the attempts being made by the cooperatives to hold their 

 wheat for higher prices. Pending the organization of the Farmers' Na- 

 tional, the Board announced that "duly qualified" cooperatives could 

 obtain "supplemental loans" from the Board. But what aid was forth- 

 coming went to a limited number of qualified cooperatives, which meant, 

 of course, that relief was unavailable for the majority of associations. 20 



More of the problems facing the Board became apparent while it was 

 in the process of organizing the Farmers' National Grain Corporation. 

 For two months the groups represented were locked in heated debate over 

 the form that the new national marketing agency was to take, over the 

 policies to be adopted, over the reaction of the private commission firms, 

 and over the future of the established cooperatives, which feared being 

 absorbed by the super marketing organizations. It was not until October 

 29, the day of the serious stock-market crash, that the Farmers' National 

 was incorporated. 



It could hardly be denied that a fundamental conflict was anticipated 

 with the private marketing agencies. Vast interests were involved. Obvi- 

 ously, many who favored the administration program did so with the 

 hope that the federal powers would be employed either to help the co- 

 operatives gain control of the private marketing facilities, or else to drive 

 the private organizations from the field completely. Opponents of the 

 program, on the other hand, charged that it was unfair to use public funds 

 for cooperatives in competition with the established agencies. 2 



21 



1 8. Federal Farm Board, Cooperative Marketing Ma\es Steady Growth, Bulletin 

 8 (Washington, 1932), pp. 8-9. 



19. "Secretary Hoover Analyzes Wastes in Marketing," Congressional Digest, IV 

 (October, 1925), pp. 262, 285; Edwin G. Nourse, "Hard Times for Farmers," New 

 Republic, LXII (April 30, 1930), p. 288. 



20. F.F.B., First Annual Report, p. 26. 



21. Business Wee\ (October 26, 1929), pp. 5-6. 



