I. A. A. RECORD— May, 1933 



13 



Chi 



Prod 



icago rroaucers 

 Gain In Percentase 

 Receipts Handled 



Money And Prices And Economic Developments Interest 

 Livestock Growers At Annual Meeting 



HENBY PARKE 



A RISE in commodity prices is the 

 ■^*- most hoped for solution to the 

 economic predicament affecting the 

 entire world, Prof. F. A. Pearson of 

 Cornell University told approximately 

 300 members and guests of the Chi- 

 cago Producers' Commission Associa- 

 tion in their annual meeting at the 



Sherman Hotel, 

 Chicago, April 4. 

 President Henry 

 H. Parke of Genoa 

 presided. 



Dr. Pe a r s o n 

 presented a mass 

 of statistical data 

 including cha r t s 

 and curves which 

 held his audience 

 with rapt atten- 

 tion for more 

 than three hours. 

 With simple illustrations he clearly 

 outlined the money question and 

 showed how widely prices had de- 

 parted from their close relation to 

 gold reserves during the 1928-1929 

 period of inflation. 



"Only two courses are open," Prof. 

 Pearson said; "one is deflation, the 

 other reflation. If we wish to go 

 through with deflation we may as well 

 proceed with bankruptcies, foreclos- 

 ures and public defaults and get them 

 over with. An early postponement by 

 lending some money or attempting to 

 hold up the price of this or that will 

 accomplish little. 



"Probably nothing is more univer- 

 sally wished for than a rise in com- 

 modity prices. We are willing to have 

 the Farm Board buy wheat and cot- 

 ton, pile tariff on tariff, lend billions 

 of government money all in the hope 

 that commodity prices may rise, but 

 when any proposal is put forward 

 that will raise the whole price level 

 it is commonly considered sacrilegious. 

 There is probably no other subject on 

 which so many people have formed 



positive convictions without scientific 

 evidence." 



Dr. Pearson traced the history of 

 money and prices since before the 

 revolutionary war, outlined in some 

 detail how European and other coun- 

 tries are attempting to solve the 

 money question. Answering the ques- 

 tion, "what price level should be re- 

 stored?" he said: "That price level to 

 which debts and other relationships 

 are most nearly adjusted. Freight 

 rates, telephone, and similar charges 

 are adjusted to the present price level 

 before the collapse. To bring com- 

 modity prices into adjustment with 

 these charges would require a price 

 level of about 40 to 50 per cent above 

 pre-war. If a very prompt recovery 

 from the present situation is desired 

 a higher price is necessary. 



"We should not be too disgruntled 

 because so little progress has been 

 made in solving the money question. 

 Past experience guides the action of 

 most of us and only a few ever de- 

 part from its teachings. Inertia is 

 such a commanding force in our 

 thoughts and actions that a great 

 change rarely occurs until an unusual 

 event forces it upon us." 



In opening the meeting. President 

 Henry H. Parke delivered a well- 

 thought-out address in which he 

 pointed out economic factors which 

 have reduced livestock prices. He con- 

 demned the home-buying campaigns 

 as a hindrance to recovery. "We must 

 master the major principles of infla- 

 tion, deflation, and the gold standard," 

 he said. "Restoration of trade between 

 nations is necessary to bring back 

 prosperity. If deflation is carried on 

 it will be a victory for the creditor 

 class and the bondholder who will take 

 over much property at rock-bottom 

 prices. The nineteen or more coun- 

 tries which are off the gold standard 

 with depreciated currencies are under- 

 mining our industries and agriculture. 



"Our association came through the 

 year with net profits of |15,683.48," 

 said Mr. Parke. "The fact that we had 

 a reserve was very helpful during 

 the first two weeks of March when the 

 bank holiday was on. This reserve 

 made possible an uninterrupted flow 

 of cash to the country. The result 

 was an immediate increase in receipts. 



"The Chicago Producers took the 

 initiative in reducing commissions at 

 Chicago and is now working with the 

 packer and stock yards administration 

 toward securing more equitable rates. 

 The hearing will probably be held in 

 May." In closing he paid a tribute to 

 the Farm Bureau for laying the 

 groundwork that made possible the 

 Producer commission associations. 



A complete analysis of the year's 

 operations which showed another gain 

 in percentage of receipts handled, was 

 given by Manager D. L. Swanson. 

 During 1932 the Producers handled 

 9.3 per cent of all livestock sold on 

 the Chicago market. This compares 

 with 8.4 per cent handled in 1931. 

 While livestock averaged approxi- 

 mately $1,200 per car in 1931, last year 

 a carload averaged only $900 in value. 

 Illinois contributed more than 70 per 

 cent and Iowa 14.07 per cent of the 

 Chicago Producers' receipts. 



The mass of statistical data pre- 

 sented by the manager was impres- 

 sive. It shows that the organization 

 is in constant touch with all details 

 affecting its business and the market- 

 ing of livestock. 



Mr. Swanson stated that the Pro- 

 ducers' subsidiary, the Chicago Stock- 

 er and Feeder Co., saved more than 

 $15,000 in actual cash to producers 

 last year, and also had been helpful in 

 maintaining livestock prices, for when 

 animals are shunted over to the 

 Stocker and Feeder Co. that much is 

 removed from competition for sale to 

 killers. "This is an example of a 

 service refund," said Swanson, "in 

 contrast to a cash refund." 



He named 16 distinct services the 

 Chicago Producers has developed for 

 livestock growers, few of which he - 

 said are available elsewhere. Truck- 

 ing-in increased 64 per cent during 

 the past year. The Producers sold 

 more than 19 per cent of all trucked- 

 in stock. 



L. J. Quasey and G. W. Baxter of 

 the Transportation Department saved 

 Illinois and Iowa livestock shippers 

 more than $75,000 last year by secur- 

 ing modified mixed livestock rates and 

 rulings. More than $7,100 of claims 

 were collected for members last year, 

 a total of $109,395 since the collection 

 service for livestock shippers was 

 started. 



Two hundred and sixty-six feeders 



