March, 1932 



THE I. A. A. RECORD 



Page Fifteen 



chase of Federal Land Bank Bonds; Land Bank Bonds should 

 be made eligible for bank reserve investments; the capital 

 stock of the Federal Land Banks should be held only by 

 members of such banks and transfer of stock should follow 

 loans. 



The credit problem involves organization as well as legis- 

 lative responsibility; the associational feature of the Federal 

 Land Bank System should be preserved in building the agri- 

 cultural credit structure of the country; to that end, we 

 recommend that all state Farm Bureaus include in their 

 programs ( 1 ) the strengthening of existing local farm loan 

 associations, and (2) the organization, wherever necessary, 

 of new local farm loan associations, local agricultural credit 

 corporations and credit unions; in order to serve co-opera- 

 tively and more completely the credit needs of agriculture, 

 we recommend to State Farm Bureaus that they give con- 

 sideration to this type of credit and that credit unions be 

 organized and properly integrated into our rural credit 

 structure. 



2. The Monetary Problem 



The present period of depression and the falling price 

 level has increased the burden of taxes, interest, debts and 

 other fixed costs on all producers to an intolerable degree; 

 the principal cause of this deflation of values is monetary; 

 the problem divides itself into two parts: first, the restora- 

 tion of the prive level; and second, the stabilization of the 

 purchasing power of money. 



First — all the powers of the Federal Reserve System and 

 the executive officials of the federal government should be 

 used to bring about the restoration of the price level near 

 the average level at which the present long-time indebted- 

 ness was incurred. 



Second — permanent prosperity in this country demands 

 that the dollar be made an accurate measure of value — that 

 its purchasing power be always constant. 



To effect this end it was recommended that Congress sta- 

 bilize the purchasing power of money: -, 



1. By directing the Federal Reserve System to use all its 

 powers, following restoration of price level, to stabilize the 

 purchasing power of money insofar as possible, using for 

 that purpose all its monetary and credit powers, including 

 currency and credit control, open market operation, and 

 changes in rediscount rates and in rediscount eligibility rules. 



2. By empowering and directing the Federal Reserve 

 Board to raise or lower reserve requirements of the Federal 

 Reserve Banks and to raise or lower the price of gold. 



3. By broadening the rediscount eligibility provision of 

 the Federal Reserve Act. 



3. The Agricultural Marketing Act 



We insist that the present congress amend the Agricul- 

 tural Market Act by including the equalization fee or some 

 other equally effective method whereby the cost of con- 

 trolling crop surpluses would be borne by each unit of the 

 commodity benefited. 



We pledge our continued support to the Federal Farm 

 Board in all efforts put forth to administer the Marketing 

 Act in such manner as will best serve the American farmer 

 and urge that in the development and administration of co- 

 operative marketing organizations, the general farm organi- 

 zations be properly recognized. 



4. Grain Futures Act 



The American public is being called upon for a return of 

 confidence and to put forth every effort for the stabilization 

 of American business, industry and agriculture. One of the 

 greatest hindering influences to eflforts being put forth in 

 these directions is the continued system of short selling 



operating on the grain and other exchanges of the country. 

 We favor such amendment to the Grain Futures Act as is 

 necessary to give the Secretary of Agriculture full power 

 and authority to regulate and, if necessary, to remove any 

 further operations in short selling (except for legitimate 

 hedging purposes) on the Grain Exchanges of the country. 



We appreciate the cordial relationship existing between 

 the United States and lUinois Department of Agriculture 

 with the Farm Bureau movement of Illinois. , 



We particularly commend Secretary Hyde of the United 

 States Department and Director Pierson of the Illinois De- 

 partment for sympathetic and immediate action taken on all 

 matters coming under their jurisdiction in behalf of farm 

 people. , 



We pledge our continued co-operation and support to 

 both Departments under their present leadership. 



IV , 



The enactment of the Reconstruction Finance Corpora- 

 tion Act by Congress and the appointment of Charles G. 

 Dawes as its president, justify the confidence and support 

 of Illinois Agriculture. 



The lUinois Agricultural Association stands ready to co- 

 operate in every way with those charged with the adminis- 

 tration of the Act to make its maximum service available 

 to Illinois farmers. 



Terminal livestock marketing costs are entirely out of line 

 with the market price of livestock and general level of com- 

 modity prices. Yardage and feed costs are subject to regula- 

 tion under the Packer Stock Yard Act. The Packer Stock 

 Yard Administration has announced that it contemplates 

 regulating practices followed and prices charged on the vari- 

 ous livestock markets. This convention urges that the in- 

 vestigation be initiated at the earliest possible time and com- 

 pleted as speedily as possible, so that if the investigation 

 should reveal that the charges should be lowered the benefit 

 of the lower costs may be quickly passed on to the livestock 

 producers. 



We authorize, therefore, and direct the Board of Directors 

 of the Illinois Agricultural Association to use its influence 

 with the Packer Stock Yard Administration to commence 

 its investigation and to order a reduction in terminal mar- 

 ket costs at as early a date as possible and to the full extent 

 the result of the investigation may justify. 



VI 



There is much organized opposition on the part of old 

 line interests to co-operative marketing of farm products 

 and the purchasing of farm sup^ies. 



The controversy in the St. Louis milk shed is an out- 

 standing example. Sanitary Milk Producers Association is 

 organized for the collective bargaining of its members' 

 product. The Association is able to secure the co-operation 

 of all dealers except the largest on the St. Louis market. It 

 is within the rights of farmers legally and morally to check 

 weights and tests, to have a voice in the price of their 

 product and to work in co-operation with dealers and City 

 Health Departments in improving the quality of their prod- 

 uct. 



On this program the largest dairy company has steadily 

 refused to co-operate. Sanitary Milk Producers Association 

 has demanded nothing unreasonable. The attitude of the 

 dairy company cannot be construed in any light other than 

 intention to deny organized milk producers a voice in the 

 marketing of the products of their own labor and capital 



