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but the same principles and policies have 

 been used and made effective by other 

 lines of American industry throughout 

 the century, and they have not only been 

 used, but abused by monopolistic business 

 and by certain groups of organized labor. 

 There need be no fear of farmers ever 

 curtailing production beyond absolute 

 necessity, as inherently they want to pro- 

 duce, and experience has proven through- 

 out all history, that they- will provide 

 adecjuate volume of food and fiber to 

 meet every national need. 



Other Phase of Farm problem 



The other phase of the farm problem 

 is somewhat different in character, al- 

 though the principles involved are about 

 the same. Hogs furnish a good example. 

 They are produced largely from corn, but 

 pound volume can be adjusted rather 

 quickly to balance supply with demand by 

 marketing within a rather wide range of 

 weights. Marketing trade agreements 

 have proven to be sound and effective 

 in handling the milk problem, and I am 

 one who believes that similar trade agree- 

 ments could be used very effectively in 

 stabilizing the price levels of livestock. 

 Undoubtedly, under any kind of policies, 

 there will be some reasonable fluctuation 

 in prices and values according to current 

 economic conditions and the relationship 

 of current supplies to demand, yet when 

 agricultural tradesmen come to realize 

 that their self-interest can be best served 

 through the stabilization of agricultural 

 production and commodity values, we 

 will have made great strides in stabiliz- 

 ing agriculture in a manner that will best 

 serve the welfare of the nation as a 

 whole. 



Those engaged in the agricultural 

 trades constitute a very considerable por- 

 tion of the total manufacturing industry 

 of the country. Records reveal that thirty 

 percent of all manufacturing industries 

 in the United States are engaged in the 

 manufacturing and processing of food 

 and other raw agricultural products. They 

 employ one-fifth of the wage earners in 

 our factories, and their manufactured 

 products constitute one-fourth of the 

 value of all products manufactured in 

 the United States. 



Of all wholesalers of commodities, 

 thirty-six percent are engaged in han- 

 dling agricultural products, and they in 

 turn employ thirty-five percent of the 

 total wage earners in the wholesale 

 houses of the country. Nearly one-half 

 of our total retail trade is engaged in re- 

 tailing food. They employ thirty-five 

 percent of all wage earners working in 

 retail establishments. 



Urges Marketing Agreement Extension 



I firmly belie%e that through the prop- 

 er use of the marketing agreement sec- 



tion of present law, agricultural pro- 

 ducers and processors and manufacturers 

 of food and raw agricultural products, 

 and agricultural tradesmen could each 

 protect their rightful interests and do so 

 in a manner that would best serve the 

 consuming interests of the country. Un- 

 warranted fluctuations in prices and 

 values could be avoided, speculation held 

 to a minimum, confidence restored and 

 the best interests of all people ser\ed. 

 Thoughtful people recognize that under 

 the speculative system, there are just as 

 many downs as there are ups in price 

 le%'els, and while at times there are those 

 who reap large profits, in the long puH 

 there are just as many who get squeezed 

 out of business operations. I recommend 

 that more attention be given to exhaust- 

 ing the possibilities in the use of mar- 

 keting agreements. 



Keep AAA Sound 



We already have on the statute books 

 a great national agricultural policy, 

 known as the Agricultural Adjustment 

 Act, which includes the agreements sec- 

 tion to which I have referred. Many 

 confuse the principles and the purposes 

 of this law with the abuses that have 

 been experienced in the field of its ad- 

 ministration. For several years I have 

 {X)inted out some of these serious trends 

 and because of so doing have many times 

 been misunderstood, even by friends. A 

 year ago, I stated that I firmly believed 

 the principles and purposes of the Agri- 

 cultural Adjustment Act would be found 

 more sorely needed in the days ahead 

 than ever before. I repeat that state- 

 ment now, but r am saying here with 

 increasing emphasis, that if this law is 

 to be protected and improved, and if it 

 is to become more and properly effecti\c 

 in the field of its administration, many 

 of the activities that have crept into its 

 administration must be stopped. Its ad- 

 ministration, its programs, and its day 

 to day operations must be so conducted 

 that they can be fully justified at all times 

 by farmers and before the court of public 

 opinion. The kind of agricultural pol- 

 icies which I believe are necessary for the 

 maintenance of agriculture at the level of 

 its national importance makes it impera- 

 tive that such policies far transcend the 

 field of partisan politics. It is imperative 

 that such policies be considered and ac- 

 cepted in the proper realm of the na- 

 tional importance of agriculture and that 

 we quit kirking the problems of agricul- 

 ture around in every political campaign. 

 Certainly, no pjolitical part)' is entitled to 

 all of the credit or all of the blame for 

 the manner in which agriculture has been 

 treated. 



The experiences of hog producers last 

 spring and again this month, and the ex- 

 periences of egg producers during the 



year are convincing evidence that par- 

 tisanship has no place in the consicfera- 

 tion of th^se important issues. Both 

 Democrats and Republicans have to eat 

 and they have to have jobs if America 

 is to endure. 



Recommends Non-Political Board 



For these and other reasons, I again 

 recommend placing all administrative re- 

 sponsibility for national agricultural agen- 

 cies essential for the welfare of agricul- 

 ture, under an independent non-political 

 board. Until this is done, I do not be- 

 lieve it will be possible to have the prob- 

 lems of agriculture considered on the 

 high plane of its overall national im- 

 portance. Such coordination of these 

 agencies is also imperative for greater 

 efficienc)', and for strict economy in their 

 administration. We must face the fact 

 that economy in all government functions 

 must be demanded and practiced, if the 

 nation is to meet its obligations. Farm- 

 • ers might well set the example in this 

 respect, and thus be in a better position 

 to denund similar economies in every ac- 

 tivity of government. 



Hold to Parity Formula 



Before leaving the subject of national 

 agricultural policies and programs, I feel 

 impelled to say just a word about the 

 parit)' formula, which is included in this 

 Agricultural Adjustment Act. As you 

 well know, this formula sets forth 

 that a fair price for a basic farm 

 commodity is one that gives the com- 

 modity a fair exchange value for 

 the products of industry, and uses the 

 average of the years 1910-1914, inclu- 

 sive, as a basis for such determination. 

 I do not believe there is any important 

 provision of agricultural law enacted in 

 the last twenty years that received as 

 much careful and sympathetic considera- 

 tion as did this provision of the Agri- 

 cultural Adjustment Act. It is not per- 

 fect, and possibly it can be improved, 

 but I am becoming not only concerned, 

 but alarmed at the number of people, 

 some no doubt, well meaning, who 

 speak of this provision as being out- 

 moded and belittle it in many ways. 



I admonish farmers to hold tenacious- 

 ly to this provision of law, at least until 

 such time as those known to be sym- 

 pathetic to agriculture can present some- 

 thing to take its place that in the light 

 of careful study is equally good or bet- 

 ter, and as defensible and understand- 

 able as the present formula. 



Time will not permit, nor do I think 

 it necessary to speak at any length on 

 the question of farm credit. However, 

 I again recommend that as an organiza- 

 tion, we seek such adjustment of present 

 laws as is necessary to put all phases of 



DECEMBER, 1944 





