The 



DliiKMs A^cukural AssodatioQ 



RECOl^D 



Published monthly by the IIlinolB Agricultural Association at 1S5 So. Main Street, Spencer, Ind. Editorial Offices, 808 So. Dearborn Bt>, Chlcage, IlL 

 Entered as second clasa matter at post office, Spencer, Ind. Acceptance for mailing at special rates of postage provided in Section 412, Aet of F*k. 28, 

 192B, authorized Oct. 27, 1925. Address all communications for publication to Editorial Offices, Illinois Agricultural Association B*«*rd, MS So. 

 Dearborn St., Chicago. 



Number 6 



JUNE, 1933 



Volume 11 



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President Roosevelt 



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igns rarm 



Bill 



Secretary Wallace Plans Early Administrative Action, 

 • Loans Begin Under Mortgage Refinancing Section 



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As THIS is written, news dis- 

 patches from Washington re- 

 port that President Roosevelt 

 has signed the Emergency Farm-In- 

 flation Bill and Secretary of Agri- 

 culture Henry Wallace plans to take 

 steps immediately to do. whatever is 

 possible and practicable to apply 

 price-raising measures to the 1933 

 crop. 



The community markets have ad- 

 vanced miraculously now for more 

 than three weeks until on Wednesday, 

 May 17, hog prices at Chicago av- 

 eraged $5 per cwt. with a top of 

 15.35 for the day. The grain mar- 

 kets and other livestock have ad- 

 vanced similarly, most of which is 

 psychological in anticipation of com- 

 ing inflation, although continued wet 

 weather delaying corn planting, and 

 an indicated 50 per cent reduction in 

 winter wheat from winter-killing are 

 having a bullish influence oh. all 

 grains. 



All in all a splendid beginning has 

 been made in the march back to pros- 

 perity although the only action taken 

 thus far by the administration was 

 first to restore confidence in banks, 

 and secondly to stop exports of gold 

 which resulted immediately in the de- 

 cline of the dollar abroad. >'. ; ? 



The powers given the Secretary of 

 Agriculture to restore parity prices to 

 agriculture, the stated purpose of the 

 bill, may be used in whole or in part. 

 It isn't likely that buying power of 

 farmers equivalent to that enjoyed in 

 the five year period from 1909 to 



1914 will be restored in the next few 

 months nor in the next year. Presi- 

 dent Roosevelt indicated in his radio 

 talk to the people of the United 

 States on Sunday night, May 7, that 

 measures would be applied to bring 

 about a gradual rise rather than a 

 boom. But he did state specifically 

 that "the administration has the 

 definite . objective of raising com- 

 modity prices to such an extent that 

 those who have borrowed money will, 

 on the average, be able to repay that 

 money in the same kind of dollar 

 which they borrowed. We do not seek 

 to let them get such a cheap dollar 

 that they will be able to pay back a 

 great deal less than they borrowed." 



Commenting on the farm bill, the 

 President said: "The farm relief bill 

 seeks by the use of several methods, 

 alone or together, to bring about an 

 increased return to farmers for their 

 major farm products, seeking at the 

 same time to prevent in the days to 

 come disastrous overproduction which 

 so often in the past has kept farm 

 commodity prices far below reason- 

 able return. This measure provides 

 wide powers for emergencies. The ex- 

 tent of its use will depend entirely 

 upon what the future has in store." 

 - Specifically, the bill now enacted in- 

 to law provides: :, , >. 



1. For reduction in acreage or pro- 

 duction of any basic agricultural 

 commodity (wheat, cotton, field com, 

 hogis, rice, tobacco, and milk and its 

 products) through agreements with 

 producers or other voluntary methods. 



and to provide for rental or benefit 

 payments in connection therewith. 



2. For a tax at the point of pro- 

 cessing on basic commodities, or com- 

 peting commodities if necessary, with 

 which to make benefit payments to 

 producers who co-operate in reducing 

 production. Commodities exported are 

 exempt from the tax. » 



3. For entering into marketing 

 agreemients with processors and 

 handlers for the purpose of raising 

 farm commodity prices. 



4. For licensing processors, co-op- 

 erative associations, and other han- 

 dlers of farm products to eliminate un- 

 fair practices or charges "that tend 

 to prevent the effectuation of the de- 

 clared policy and the restoration of 

 normal economic conditions in the 

 marketing of such commodities or 

 products and the financing thereof." 



5. For revoking any such license 

 after due notice and opportunity for_i_ 

 hearing, for violations of the terms or 

 conditions thereof. 



The processing tax shall commence 

 on the date of proclamation by the 

 Secretary of Agriculture that rental 

 or benefit payments are to be made 

 with respect to such commodity. 



The rate of the tax shall be the 

 difference between the current av- 

 erage farm price for the commodity 

 and the "fair exchange" value of the 

 commodity. (Fair exchange value 

 means that price which will give the 

 producer purchasing power equivalent 

 to that of 1909-1914.) If the tax re- 

 sults in an accumulation of surplus, ''- 

 however, the Secretary may lower the 

 rate. 



To administer the Act, the Secre- ' 

 tary is authorized to set up the 

 Emergency Agricultural Adjustment 

 Administration in the Department of 

 Agriculture. No officer or employee 

 may receive more than $10,000 per 

 year. The Secretary may establish 

 state and local committees or associa- . . 

 tions of producers, and may permit 

 processors and co-operative associa- 

 tions when qualified, to act as agents 

 of their members and patrons in dis- < 

 tributing rental payments. 



The Act may be terminated "when- 0: 



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