Page Six 



THE I. A. A. RECORD 



June, 1932 



Jim Stone Replies To 



Grain Trade Criticisms 



Charges Grain Gamblers Trying 

 To Get Stabilization Wheat Be- 

 cause It's Going Higher 



James C. Stone, chairman of 

 the Federal Farm Board, bowled 

 over spokesmen for the grain 

 trade who have been criticizing 

 the methods of the Grain Stabili- 

 zation Corporation in disposing of 

 its wheat holdings, in a recent 

 statement. 



He charged that "grain gam- 

 blers" running true to form are 

 trying to get hold of the stabil- 

 ization corporation's grain at bar- 

 gain prices because the outlook 

 is for higher wheat prices. He 

 challenged the grain trade to ex- 

 plain how it is that wheat has 

 been held from 5 to 15 cents a 

 bushel above the world market, 

 whereas before the stabilization 

 operations the American price 

 ranged considerably below the 

 world price. 



"Newspaper reports of state- 

 ments of Mr. Peter B. Carey, 

 president of the Chicago Board of 

 Trade, in regard to methods of 

 disposal of the stocks of the Grain 

 Stabilization Corporation, indicate 

 an attitude towards liquidation of 

 these stocks strictly in conformity 

 with the long established view- 

 point of board of trade members," 

 said Mr. Stone. 



"They look upon themselves as 

 middlemen, entitled by custom to 

 take a heavy toll from American 

 wheat producers for so-called 

 services, which consist chiefly in 

 the pocketing by themselves of 

 the largest possible share of the 

 consumer's dollar. Every sugges- 

 tion so far made in the present 

 depressed situation to this board 

 for their assistance has contained 

 as its chief element personal profit 

 to those tendering aid either by 

 buying at prices ridiculously be- 

 low the market or for com- 

 missions on huge volume. 



Calls Liquidation Orderly 



"Liquidation of the stocks of 

 the Grain Stabilization Corpora- 

 tion under the plan announced on 

 June 30, 1931, has proceeded in 

 such a manner that American 

 wheat prices have been main- 

 tained at substantially 5 to 15 

 cents a bushel higher than world 

 market price parity in the face of 

 the most trying marketing condi- 

 tions known to any living man. 

 Let the grain gambling critics ex- 



plain to the public how and why 

 this happened. 



"The crop outlook today leads 

 qualified observers to conclude 

 that brighter days are in prospect 

 for our wheat producers. Winter 

 wheat reports indicate low pro- 

 duction. Spring areas do not 

 promise excess supplies. No won- 

 der the speculatively inclined 

 seek wheat stocks on the bargain 

 counter. The Grain Stabilization 

 Corporation has none to offer on 

 that basis. 



Predicts Upward Swing 



"Wheat is the only great major 

 comtnodity which for the last five 

 months has shown a definite up- 

 ward tendency. Its influence un- 

 der the present favorable statis- 

 tical position may well lead other 

 commodities to higher ground. 

 That opportunity will not be 

 risked in the hands of people in a 

 group representing those who 

 have grown rich from the profits 

 gained by market manipulation. 

 The recent disclosures as to the 

 operations of brother speculators 

 in stocks do not encourage the 

 placing of great power in such 

 hands. The orderly method of dis- 

 tributing as demand arises will be 

 continued. 



"The public should not be fooled 

 by such attacks on the farm board 

 as those of Mr. Carey. Their pur- 

 pose is not to help in the present 

 situation but to prevent the 

 farmer organizing his business so 

 that he, in a measure, can control 

 the method under which his prod- 

 ucts are sold." 



Packers Shall Not v : ■ 

 Enter Grocery Business 



The Supreme Court of the 

 United States recently denied the 

 meat packers the right to pack 

 and distribute other food prod- 

 . ducts. The decision upheld the 

 packers' consent decree of 1921. 



"Size and aggressions induced 

 the fear in 1920 that the defend- 

 ants (the packers), if permitted 

 to deal in groceries, would drive 

 their rivals to the wall. Size and 

 past aggressions leave the fear 

 unmoved today," the court stated 

 in its majority opinion, written by 

 Mr. Justice Cardozo. The packers 

 contended that there no longer is 

 need for any restraint against 

 their handling groceries at whole- 

 sale and that this prohibition is 

 oppressive and unjust. :;; v 



A dissenting opinion by Mr. 

 Justice Butler was concurred in by 



Mr. Justice Van Devanter. Chief 

 Justice Hughes and Mr. Justices 

 Sutherland and Stone did not 

 participate in the case, having en- 

 gaged in prior proceedings. 



Pres. Smith In Washington 

 Working For Legislation 



Seek Congressional Action On 



Measures To Raise Farm 



Prices 



As we go to press President Earl 

 C. Smith is in Washington with 

 other Farm Bureau officials to 

 urge the passage of emergency 

 crop surplus control legislation, 

 and other measures designed to 

 raise farm commodity prices. 



"I expect to stay on the job un- 

 til something effective is done to 

 raise the price of farm products," 

 he said before his departure. "The 

 terrific decline in the price of 

 farm products has wiped out the 

 farmer's debt-paying ability and 

 buying power. In my judgment 

 the wheels in the factories will 

 not start turning until Congress 

 acts to restore farm prices to a 

 reasonable level. Farmers are in 

 the market for almost everything. 

 They have no money to buy. It's 

 time our industrial, financial and 

 political leaders came to a full 

 realization of the fundamentals 

 of this problem. 



Pleaded in Vain 



"Farmers have pleaded in vain 

 for nearly ten years for effective 

 surplus control legislation. They 

 have been given half loaves long 

 enough. We are approaching the 

 end of our rope. Until this issue is 

 met and met squarely industry as 

 well as agriculture cannot hope 

 for substantial improvement. 



"There must be more concerted 

 effort and determination at Wash- 

 ington than has yet been appar- 

 ent. Some leaders have suggested 

 that the farmer will be taken care 

 of at the national political con- 

 ventions. We believe that Congress 

 can and should do something be- 

 fore it adjourns." 



Before House Committee 



The senate agricultural com- 

 mittee approved the measure 

 authorizing the Farm Board to 

 use the equalization fee, export 

 debenture, or crop allotment plan 

 at its discretion in raising the 

 domesti,c price on farm products. 

 The bill at this writing lies in the 

 house committee on agriculture 

 where sentiment is divided for 

 and against it. ,, „ 



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