January, 1933 



THE I. A. A. RECORD 



Page Seven 



The year 1933 promises to be an 

 interesting and crucial one in the 

 life of this nation. With it we begin 

 the fourth consecutive year of a 

 period of deflation unprecedented 

 in American history. Whether or 

 not we shall continue on the down- 

 ward path beset as it is with low 

 prices, business stagnation, unem- 

 ployment, bankruptcies, wage and 

 rate cutting, scaling down of debts, 

 and headaches will be largely de- 

 termined by the incom- 

 ing administration and 

 its policies. 



trained on the new law-making 

 body and administration at Wash- 

 ington to defeat any efforts at es- 

 tablishing higher price levels. These 

 people belong largely to the cred- 

 itor class. They are always at work. 

 It is possible, not probable, that 

 they may thwart not only reason- 

 able inflationary measures but al- 

 so present efforts at raising farm 

 prices. What then? 



Agriculture will be no worse off 

 than it is now and the farmers' 

 position likely will be improved. De- 

 flation apparently has run its 

 course in agriculture but not in 

 freight and utility rates, taxes, 

 farm machinery and supplies, lum- 



WHICH WAY UNCLE SAM? 



While controlled in- 

 f 1 a t i o n or reflation 

 which can be brought 

 about by revaluing gold 

 may not cure all our 

 troubles overnight so 

 easily as the cartoonist 

 has pictured it in the 

 accompanying illustra- 

 tion, that course offers 

 more hope than the one 

 we have been following. 



It is clear now that 

 the policy of bolstering 

 up our financial insti- 

 tutions with huge gov- 

 ernment loans is only a 

 stop gap to put off the 

 evil day of reckoning. 

 These loans presuppose 

 a return to higher price 

 levels. So did wheat 

 and cotton stabiliza- 

 tion. For ten years the 

 farmer particularly has 

 been given all kinds 

 and varieties of credit 

 legislation and loans to 

 make it easier for him 

 to go in debt. But little 

 has been done to aid 

 him in paying back his 

 borrowings. Lower in- 

 terest rates and higher 

 farm prices alone will do this. So 

 reflation to the average 1920-29 

 price level seems to be the solution 

 of a difficult problem. 



Such a course will result in some 

 injustices for no law or action can 

 be applied to fit perfectly every 

 case. The greatest good to the 

 greatest number should govern. 

 Certainly the interests of the large 

 number who have been caught in 

 the whirlpool of toppling prices 

 through no fault of their own out- 

 weigh those of the smaller group of 

 creditors who have loaned money 

 at present low levels. 



ber, fencing, etc., which must yield 

 considerably more ground before 

 they are on a fair exchange ba- 

 sis with farm products. American 

 ingenuity will solve the problem 

 eventually of producing services, 

 machinery, and commodities at 

 prices we can afford to pay. 



There are powerful individuals 

 and groups whose influence will be 



This readjustment in exchange 

 values will not solve the debt prob- 

 lem, however. That situation can 

 and will be corrected by scaling 

 down interest rates, or through 

 moratoriums on interest and prin- 

 cipal payments until we work back 

 to higher price levels. The gradual 

 climb will begin just as soon as 

 everything is thoroughly deflated 

 and we all are buying and selling 



Congress Works Over Farm Bill 



(Continued from page 5) 



W. P. Lambertson, Director 

 FARMERS' EQUITY UNION 



Leroy Melton, President 

 AMERICAN COTTON CO-OPERA- 

 TIVE ASSOCIATION 

 J. B. Blalock, President 

 C. O. Moser, Vice-President 

 N. C. Williamson, Director 

 C. G. Henry, Director 

 FARMERS' NATIONAL GRAIN 

 CORPORATION 

 C. E. Huff, President 

 H. W. Thatcher, Washington Rep- 



F6S6Htj3itjiV6 



NATIONAL LIVESTOCK MARKET- 

 ING ASSOCIATION. Charles Ew- 

 ing, President. Dr. O. O. 

 Wolf, E. A. Beamer. 

 NATIONAL CO-OPER- 

 ATIVE MILK PRO- 

 DUCERS' FEDERA- 

 TION. John D. Miller, 

 Fred Sexauer, Geo. 

 Slocum, Charles W. 

 Holman. 

 NATIONAL WOOL 

 MARKETING ASS'N. 

 Dr. O. O. Wolf. 

 NATIONAL FRUIT 

 AND VEGETABLE 

 MARKETING ASS'N. 

 A. B. Leeper, C. V. 

 Cochran. 

 DAIRY AND POULTRY 

 CO-OPERATIVES, I^fC. 



Leroy Melton. 

 NORTHERN WISCON- 

 SIN TOBACCO POOL 

 Emerson Ela, General 

 Manager. 



FARM PRESS. C. V. 

 Gregory, Prairie 

 Farmer. 



E. R. Eastman, Amer- 

 ican Agriculturist. Dan 

 Wallace, The Farmer. 

 Dr. B. F. Kilgore, Pro- 

 gressive Farmer. 

 NATIONAL ASSOCIA- 

 TION OF FARM OR- 

 GANIZATIONS 

 Ralph Snyder, Fred- 

 eric P. Lee, Counsel. 

 Opposition to the ap- 

 plication of the do- 

 mestic allotment plan to hogs was 

 expressed by leading packer repre- 

 sentatives before the House Com- 

 mittee Dec. 19 and 20. 



The packers asserted the proposed 

 excise tax of two cents per pound 

 would result in a lower quoted price 

 to producer on live hogs "because 

 low buying power of the public 

 could not absorb additional cost." 



The packers have issued a pam- 

 phlet attacking the plan among 

 rural banks and corn belt farmers. 



again on a fair exchange basis. Not 

 before. But this is the long hard 

 road. Why should we take it when 

 the government has the power to 

 provide a smoother and shorter 

 road? —E. G. T. 





