WHAT PEACE CAN MEAN TO AMERICAN FARMERS 11 



tariff barriers throughout the world and to prevent international 

 monopoly through private cartels are problems with broader impli- 

 cations and require special treatment. But to the extent that produc- 

 tion, employment, and consumption at home could be expanded by the 

 independent action of this country in lowering tariff rates, such 

 action would not only be conducive to the maintenance of employ- 

 ment at home but also to the promotion of international trade, 

 cooperation, and peace. 



To utilize the power of Government adequately to encourage com- 

 petition of the right kind, is indirectly to aid the consumer in getting 

 the most for his money, as well as to induce an expansion in private 

 investment and employment. Whatever aids the consumer in getting 

 more for his money increases his purchasing power, which is his 

 power to buy more goods and services. Possibilities for Government 

 action in this direction, in addition to some of the types already dis- 

 cussed, include such things as the encouragement of uniform grade 

 labeling and higher standards in advertising, and fuller enforcement 

 of the pure food and drug laws. All of these things tend to limit the 

 opportunity for anyone to exploit consumers, or to diminish the 

 power of consumers to buy the goods and services a fully employed 

 labor force can produce. 



Output restriction by labor has long been practiced as a means for 

 bargaining with employers. From the viewpoint of labor, it has been 

 defended on the ground that it was necessary to insure labor a fair 

 wage. One means for breaking this deadlock in the interest of expand- 

 ing production and employment would be to encourage the extension 

 of union-management agreements that eliminate restrictive labor 

 practices in exchange for better incomes and working conditions for 

 employees. If workers are assured that their greater efficiency will 

 not result in the loss of their jobs, it will be easier to break down 

 restrictive labor practices. 



Many other possibilities exist for encouraging the kind of compe- 

 tition that will contribute toward a stable and expanding level of 

 employment, but those already mentioned are illustrative of the more 

 important types of action worth considering. 



Stimulation of Private Investment 



Much can be done by Government directly to promote private em- 

 ployment by stimulating private investment. The major fields of 

 private investment are (1) business-enterprise facilities and (2) resi- 

 dential housing. 



Business-enterprise Facilities 



One of the most important single inducements to private invest- 

 ment is the maintenance of a low interest rate. The lower the rate of 

 interest in relation to expected profits, the greater the incentive for 

 businessmen to borrow funds to finance construction of plant, equip- 

 ment, and other facilities in all kinds of industries, including manu- 

 facturing, service, trade, and transportation. And the farmer with a 

 mortgage on his farm is especially aided by low interest rates ; pro- 

 vided, of course, he does not increase his debt in the same proportion 

 as his interest rate is lowered — either by bidding up land values or 

 by other means. The less he has to pay as interest, the more he has 



