ILLINOIS AGRICULTURAL ASSOCIATION RECORD 



To adrance the purpose for which the Farm Bureau was organized, namely, 

 to promote, protect and represent the business, economic, social artd educa- 

 tional interests of the farmers of Illinois and the Nation, and to develop 

 agriculture. 



THE STATE FARM 

 BUREAU njBUCAnON 



'■ 







/"^^nce (^onirol v6 inflation 



By PRESIDENT CHARLES B. SHUMAN 



THIS is a story recently told to me, which I think has partic- 

 ular significance: "Our party line phone jangled insistently 

 one morning recently and quite by chance I found it conven- 

 ient to listen in while one of my neigh- 

 bors arranged with the elevator manager 

 tor the sale of the remainder of his corn 

 crop. It was a curious transaction. The 

 price was not even mentioned — both par- 

 ties knew that the O.P.A. ceiling price at 

 that time was SI. 10. As my neighbor put 

 it, he wanted to know how much wam- 

 pum' he would get if he delivered the 

 corn to this particular elevator. He men- 

 tioned other trades that he knew about 

 wherein the seller of corn had received 

 delivery of a new tractor, a new car, fence 

 posts, feed or other scarce items, all at legitimate ceiling prices. 

 After considerable haggling, terms were reached whereby my 

 neighbor was to receive four pairs of nylon hose for his wife 

 and two tons of feed, all at ceiling prices." 



All over America this same type of barter is taking place 

 in all types of scare goods. Our system of exchange through 

 the method of pricing is rapidly disintegrating. For centuries 

 we have found that the use of money was superior to barter of 

 goods as a method of exchange. Through these same centuries, 

 civilized man has also found that a free pricing system was 

 necessary to regulate production and consumption of goods and 

 to keep these two forces in balance. Today under the guise of 

 inflation control we witness the chaos that results from discard- 

 ing this time-proven natural system of regulation in favor of a 

 rigid man-controlled price structure. 



Ordinarily prices tell us when a commodity is plentiful and 

 we use it freely. Other times prices tell us there is a scarcity 

 and we use less of the commodity. Today we use too much feed 

 or eat too much meat because price falsely says, "Go ahead, 

 there is plenty." 



Does price control check inflation.'' Most of us, remem- 

 bering the experience of World War I, think of inflation in 

 terms of soaring prices. Today we know that legal prices can 

 be arbitrarily held down and at the same time we can have in- 

 flation through lowering of quality, tie-in sales, barter, black 

 markets and other devices. 



How do wage increases affert inflation .■• We are now 

 witne,ssing a unique but impossible attempt to hold prices down 

 and at the same time raise wages. Most of us know that the 

 principal item in the cost of producing all commodities is 

 labor. Therefore, it is clearly impossible to hold the line on 

 prices after the politically expedient 18% increase in wages re- 

 cently granted. 



Price control during war probably served a valuable func- 

 tion by drastically reducing the production of civilian goods. 

 Little or no attempt was made to impose price control on war 

 necessary goods and they were produced in great volume. To- 

 day we do not need war goods but we do need civilian goods. 

 Price control is continuing to throttle their production. 



Full production is the only way to prevent disastrous in- 

 flation. That full production will come only when there is 

 reasonable price incentive. Your organization has not asked 

 for an abrupt end of the controls over price, but we have in- 

 sisted that a definite schedule for removal be incorporated in 

 any legislation extending O.P.A. This end must come within 

 a matter of months — not years ! 



APRIL, 1946 • VOLUME 24, NUMBER 4 



ILLINOIS AGRICULTURAL ASSOCIATION 



orncERS 



President, Charles B. Shuman Sullivan 



Vice-President, Floyd E. Morris Buffalo 



Secretary, Paul E. Mathias Jlinsdale 



Field Sec, Geo. E. Metxger Chicago 



Treasurer. R. A. Cowles Bloomington 



Asst. Treas.. A. R. Wright VcBna 



Comptroller, C. C. Chapelle Chicago 



General Counsel, Donald Kirkpatrick Chicago 



BOARD OF DIRECTORS 

 (By Congressional Districts) 



1st to Uth Harvey W. Adair, Chicago Hts. 



12lh C. J. EUiott, Sireator 



13th. _. ...Homer Curtiss. Stockton 



Mill Otto SleHey. Stronghurst 



ISth. _ Ronald A. Holt, Galva 



ISth. Russell V. McKee, Varna 



17th Charles Lauritzen, Roddick 



18th John T. Evans, Hoopeston 



19th Milton W. Warren, Mansfield 



20th K. T. Smith, Greenfield 



21st Dan L. Clarke, New Berlin 



22nd J. King Eaton, EdMvardsvilie 



23rd Chester McCord, Newton 



24th Lyman Bunting, EUery 



2Stli. August G. Eggerding, Red Bud 



DEPARTMENT DIRECTORS 



Dairy Marketing Wilfred Shaw 



Fruit and Vegetable Marketing L. L. Colvis 



Grain Morketing George H. Iftner 



Legal Donald Kirkpatrick 



Live Stock Maiketiag S. F. Russell 



Office - C. E. Johnston 



Organization „ _ O. D. Brissenden 



Produce Marketing F. A. Gougler 



Publicity Creston Foster 



Research and Taxation L. H. Simerl 



Rural School Relations John K. Cox 



Sales Service W. P. Sondford 



Transportotion-CIaims G. W. Baxter 



Young People's Activities fUsivorth D. Lyon 



ASSOCIATED ORGANIZATIONS 



Country Life Ins. Co. Dave Mieher, Mgr. 



Country Mutual Fire Co. J. H. Kelker, Mgr. 



Country Mutual Casuolty Co.. .A. E. Richardson. 



Mgr. 



111. Agr. Auditing Assn. C. E. Strand, Mgr. 



111. Agr. Service Co. Donold Kirkpatrick, Sec. 

 111. Co-op Locker Service Dona Cryder. Pros. 



111. F. Bur. Serum Assn S. F. Hussell, Sec.-Mgr. 



III. Farm Supply Co C. H. Becker. Mgr. 



111. Fruit Growers' Exchange-L. L. Colvis. Mgr. 



ni. Grain Corporation Frank Haines, Mgr. 



111. Livestock Mktg. Assn...H. W, Troutmann, Mgr. 



ni. MUk Producers' Assn Wilfred Shaw. Mgr. 



Prairie Farms Creameries .. J. B. Coimtiss. Mgr. 

 m. Wool Mktg. Assn S. F. Russell. Sec.-Mgr. 



Director of Information, Creston Foster. Asst. Editor, James C. Thomson. 



The Illinois Agricultural Associotion RECORD is published monthly except August by the Illinois Agricultural Association at 1501 W. Washington Road. 

 Mendola. 111. Editorial Offices. SOS So. Dearborn St.. Chicago, 111. Entered as second class matter at post office, Mendota. III., Sept. 11, 1336. Accept- 

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 publication to Editorial Offices, Illinois Agricultural Association RECORD, 608 So. Dearborn St.. Chicago. The individual membership fee of the 

 Illinois Agricultural Association is five dollars a yoar. The fee includes payment of fifty cents for subscription to the Illinois Agricultural Association 

 RECORD. Postmaster: Send notices on Form 35^. Undeliverable copies returned under Form 3579 to editorial offices. 608 S6. Dearborn St.. Chicago, HI. 



APRIL, 1946 



