Page Fourteen 



THE 1. A. A. RECORD 



April, 1933 



How the New Bill 



Was Written 



(Continued from page 4) 



cussed pro and con in the press. 

 The plan which has the most gen- 

 eral support of farm leaders pro- 

 vides for an extensive issue of gov- 

 ernment bonds to be offered holders 

 of farm mortgages in amounts 

 equivalent to a fair appraised value 

 of the mortgaged property. In many 

 cases this means an appraisal be- 

 low the face value of the mortgage. 

 It is contemplated that these 

 bonds will bear 2% to three per 

 cent interest, the rate to be held 

 down as low as possible. The rate 

 will depend upon the state of the 

 money market and the mortgagees' 

 willingness to take the bonds at par 

 value. It is estimated that the gov- 

 ernment will find it necessary to 

 add approximately one per cent in- 

 terest to the bond issue rate to the 

 farmer, to cover administration 

 costs, thus offering him a long term 

 loan at the revised valuation in re- 

 turn for a first mortgage, principal 

 and interest to be amortized over a 

 period of 35 to 40 years. 



Wholly Voluntary 



This plan, if enacted, will be 

 wholly voluntary. No holder of a 

 farm mortgage will be compelled to 

 take the government bonds. It is 

 likely, however, that with the pas- 

 sage of such a measure the govern- 

 ment will be called upon to take 

 over many distressed mortgage 

 loans, particularly those bearing 

 high rates of interest where inter- 

 est and principal payments are in 

 default. 



The details of the farm mortgage 

 refinancing program will depend to 

 some . extent on the policy of the 

 new administration with reference 

 to inflation. As we go to press there 

 are indications from influential 

 quarters that a reflationary move- 

 ment may gain considerable mo- 

 mentum. 



Heretofore controlled inflation as 

 a remedy for the depression has 

 been sponsored largely by farm or- 

 ganizations, but more recently city 

 interests, particularly holders of 

 distressed real estate, life insurance 

 companies, and others who have 

 even a larger stake in the debt 

 situation than farmers, have shown 

 much interest in relief from this 

 quarter. 



In a leading editorial on March 

 27 the Chicago Daily News, a con- 

 servative newspaper, definitely 

 favors controlled inflation as a way 

 out. Opposing the farm mortgage 

 refinancing program the Daily 

 News says: "Instead of indulging 

 in such complicated experiments 

 the Roosevelt administration should 

 employ a method of farm relief that 

 is already available. The emergency 

 banking act has created the ma- 



^DAIRY 



Suit was filed in the Scott coun- 

 ty, Iowa district court March 15 

 and March 18 by the Quality Milk 

 Ass'n., Moline, to collect sums ag- 

 gregating $7,477.89 against the Su- 

 perior Dairy Company and five 

 other distributors at the Quad- 

 Cities. 



The money is due the producers 

 association for milk delivered the 

 last two weeks of January. The 

 dealers refused payment appar- 

 ently as another move to harm the 

 producers' organization. 



Defendants named in the suits 

 filed in Iowa were Superior Dairy 

 Company, $2,182.17; Double Y 

 Dairy, $349.33; Micheel Bros. Dairy, 

 $1,327.76; Washington Dairy, $1,- 

 320.80; Model Dairy, $1,011.97; 

 lowana Farms, $1,285.86. 



When the dealers summarily re- 

 fused to 1 uy milk from the 800 or- 

 ganized dairymen who have always 

 supplied the Quad-Cities' market, 

 the producers temporarily dropped 

 the price to 3 cents in an effort to 

 build up an outlet through a co- 

 operating distributor, Sturtevant 

 Ice Cream Company. Later the price 

 was raised to six cents. 



Retail milk business developed by 

 the Quality Milk Association 

 through the Sturtevant Company 

 has increased steadily as a result of 

 the house to house canvass of the 

 producers. Twenty or more trucks 

 are now operating daily. 



All dairies in the Quad-Cities are 

 now selling at six cents per quart, 

 although a number of milk depots 

 have been peddling raw milk direct 

 to the consumer at five cents. 



chinery for controlled inflation. 

 Properly and aggressively directed, 

 such expansion of the currency 

 could raise price levels of all farm 

 commodities within a reasonable 

 period. The farmer's burden of 

 taxes and mortgage payments 

 would be lightened as rural dollar 

 incomes rose. If with inflation there 

 was also a temporary moratorium 

 on foreclosures, the major causes of 

 farm discontent would be re- 

 moved." 



Inflation will bring some relief 

 through higher farm prices from 

 debts, high taxes, and burdensome 

 transportation and distribution 

 costs. Economists generally agree 

 that farm commodity prices would 

 be among the first to be influenced 

 by inflation. But inflation also will 

 raise the cost of things the farmer 

 must buy. Inflation will not alone 

 establish parity prices for agricul- 

 ture. Control of farm surpluses, de- 

 velopment of foreign markets, and 

 relief from excessive interest rates 

 are likewise needed. 



1932 Farm Indome Is 



56% Less Than In '29 



'•Farmers are finding it extremely 

 difficult, and many find it impos- 

 sible to pay their taxes and other 

 fixed charges" says the Bureau of 

 Agricultural Economics, in its re- 

 cent report on the farm situa- 

 tion. It is stated that there is "uni- 

 versal complaint that fixed charges 

 now swallow income." 



Reviewing the drop in farm in- 

 come, the bureau points out that 

 "in the last three years the pro- 

 ducers of grains, of cotton, of meat 

 animals, and of dairy products 

 have seen their income shrink 

 roundly a billion dollars in each of 

 those lines; and these industries 

 are not the only large losers." 



The bureau places- responsibility 

 for the long deflation in farm prod- 

 ucts prices in "causes largely out- 

 side agriculture." Net production of 

 farm products, it is stated, has been 

 comparatively stable for ten years 

 while all sorts of farm shifts and 

 readjustments have been resorted 

 to, and production is less this year 

 than in 1929. Nevertheless, the gross 

 farm income is only 44 per cent of 

 that for 1929. 



Gross income from farm produc- 

 tion for 1932 is tentatively estimated 

 at $5,240,000,000. In 1931 it was $6,- 

 955,000,000, in 1930 $9,403,000,000, 

 and in 1929 $11,950,000,000. 



The livestock industry shows a 

 return of approximately $2,958,000,- 

 000 for 1932 compared with $4,191,- 

 000,000 in 1931. Gross income from 

 crops is placed at $2,282,000,000 for 

 1932 as contrasted with $2,764,000,- 

 000 for 1931. 



The biggest shrinkage in the 

 livestock group this year has been 

 in returns from cattle, hogs, and 

 sheep, and in dairy products. 



Co-operate In Treating 



Horses Against Bots 



F. J. McNair, manager of the 

 Shipping Association, at Dahlgren, 

 Hamilton county, reports that in 

 that section farmers have co- 

 operated successfully in treating 

 horses and mules for bots and stom- 

 ach worms, at a decided saving in 

 cost. 



"Local farmers purchased a cap- 

 sule gun for $1.75 and a quantity of 

 liquid carbon disulfid," said McNair. 

 "Each dose including capsule costs 

 only a few cents. Carbon disulfid 

 bought in 100 pound lots can be 

 had as cheaply as linseed oil and 

 this amount will treat approxi- 

 mately 1600 horses. 



"Farmers everywhere should or- 

 ganize in December and buy carbon 

 disulfid," writes McNair. "If any 

 community is interested we will be 

 glad to give additional informa- 

 tion." 



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