FARM BOARD TO FARM STRIKE 4*7 



The next move was to establish the Grain Stabilization Corporation. 41 

 This corporation was supposed to have been brought into existence as a 

 concession to those who had favored the equalization fee. 42 The belief 

 was that neither Hoover nor Legge favored it, but that they moved in 

 this direction only because they had been besieged by senators from the 

 wheat and cotton states who were pressing for relief from the surplus. It 

 was said that the administration, even though it yielded, had hoped "that 

 stabilization would remain of only academic interest, like some other 

 parts of the Act, never to be put to use or otherwise employed." But events 

 moved too rapidly. The stock-market crash made the loan policy "look 

 sick," hence the system of outright purchases was inaugurated. When 

 this too failed, the Grain Stabilization Corporation was established. 43 



No sooner had the Grain Corporation come into being than it was 

 discovered that some buyers "who earlier had purchased wheat from the 

 farmer and hedged it were selling it to the . . . Corporation at an un- 

 warranted profit." This brought a sharp reaction from the Farm Board. 

 Thereafter, it was going to support the price of only that wheat held by 

 the cooperatives and those affiliated with the Grain Corporation and 

 none other. 44 This announced change immediately drew fire from the 

 grain trade. It protested bitterly, but once again the protests made no 

 difference. Legge, with his "apparent candor and prairie-forthrightness 

 of speech," ruffled his critics all the more by denouncing them as "roll-top 

 desk farmers." 45 



The actions taken by the Board in establishing the Grain Corporation 

 showed that the administration was worried. Late in February Legge and 

 others associated with the Board were called in by President Hoover for 

 consultation, for the Republicans were worried over the possible effects 

 that low prices were going to have in the November elections. 46 



It was claimed that the purchase of cash wheat and May futures helped 

 to prevent a sharp break in prices in February and March. On the last 



41. F.F.B., First Annual Report, p. 29. 



42. A. C. Hoffman, "After Two Years of Farm Relief," New Republic, LXVIII 

 (July i, 1931), p. 169. 



43. "Alexander the Goat," New Republic, LXVII (April 15, 1931), pp. 232-33. 



44. F.F.B., First Annual Report, p. 29. 



45. "The Farm Board Writes a New Subscription," Business Wee\ (March 8, 

 1930), p. 4. 



46. St. Paul Dispatch, February 25, 1930. 



