AGRICULTURAL RELIEF

The CuairMaN. Did I understand you to say that your theory is
that it would disrupt the present channels of commerce?

Mr. AnpERsON. I said I thought it would set up new channels of
trade, which would supplant those that now exist, and that the
methods under which business would have to be done would be
entirely different under the operations of this bill than they are now.

The CrairMAN. You expressed the fear that the exchanges could
not operate?

Mr. AxpErsoN. I do not see how they could operate.

The CuairMAN. It is generally agreed that if the price is stabilized,
and there are no fluctuations in prices, there would be no need of the
exchanges.

Mr. AxpErsoN. I do not see where there would be any. I can
not conceive of getting that degree of stabilization, however, except
on the basis of a fixed price.

The CrairMmaN. Then if the declared policy of the bill is carried
out, it would stabilize prices, not to fix prices as you stated, but it
would stabilize the price to a certain degree for domestic consumption
to the extent that would give the agricultural industry the benefit
of the protective laws already established as in the case of organized
industry, that is what the declaration contemplates at any rate.
The object is to stimulate, equalize, and stabilize the price at such a
point as would give the producer the benefit of the protective laws
already established.

Mr. Anperson. The only difference between you and I, Mr.
Chairman, on that proposition, is that you nin. it will do it and I
do not.

The CuamrMaN. I would like to have your reasons for it. You
sald it is going to break down. I am frank to say that if we could
do away with the violent fluctuations in prices, gambling and
disreputable practices so generally condemned, it would probably
do away with the exchanges.

Mr. ANDERSON. I donot think you could do away with fluctuations
altogether.

The CrarrvaN. I understood you to say you did. You said the
exchanges could not operate, and if they can not operate they of
course could not fix the prices. I think we are all agreed about that.
And I agree with you that it would affect speculation. Shall the
violent fluctuations be permitted to go on, or shall the prices be
stabilized so that the farmer may get the advantage of the protective
laws already established? That is the big question before us.
That is where the disagreement comes in. Some say, “We will
leave the equalization fee out of it; we will go on and make contracts
and permit the fluctuations to go on, and in that way the exchanges
may continue.” We have some men of high character operating on
the exchanges, but unfortunately there are some who are not of the
highest type, and we should like to get rid of some of those parasites,
f possible. And there is where the disagreement enters in.

I understood you to say that if the fluctuations in prices are done
away with and prices stabilized that the exchanges could not operate;
that is, if the price is stabilized there would be no need of any opera-
tion on the exchanges. Would it disturb our other channels of
trade? Would it change our commercial system——

Mr. AxpeErsoN. No.

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