214 THE GREEN RISING 



operative marketing associations. All of these as- 

 sociations must learn sooner or later that the 

 economic production and distribution of commodi- 

 ties is the aim in every program of commodity 

 marketing on a cooperative basis. 



Much has been said about the operation of laws 

 of supply and demand in relation to the cooperative 

 marketing movement. There has been much mis- 

 understanding as to the meaning and operation of 

 this economic principle. Henderson has formulated 

 the laws of supply and demand as follows: 



"1. When, at the price ruling, demand exceeds 

 supply, the price tends to rise. Conversely when 

 supply exceeds demand the price tends to fall. 



"2. A rise in price tends, sooner or later, to de- 

 crease demand and to increase supply. Conversely 

 a fall in price tends, sooner or later, to increase de- 

 mand and to decrease supply. 



"3. Price tends to the level at which demand is 

 equal to supply." 6 



The validity of these laws is accepted generally, 

 but the farmers believe that the price determination 

 on the basis of the free operation of these laws does 

 not usually exist. Governor Frank 0. Lowden, a 

 notable advocate of cooperative marketing, in an 

 address before the National Cooperative Marketing 

 Conference in Washington in January, 1925, said : 



'Supply and Demand (The Cambridge Economic Handbooks 

 Series), Chap. II, pp. 18 and 19. 



