Agricultural relief: Agricultural relief

Bibliographic data

Multivolume work

Identifikator:: 1831932415

Document type:: Multivolume work

Title:: Agricultural relief

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Collection:: Economics Books

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Volume

Identifikator:: 1831935244

URN:: urn:nbn:de:zbw-retromon-232156

Document type:: Volume

Title:: Agricultural relief

Volume count:: Pt. 8

Place of publication:: Washington

Publisher:: Gov. Pr. Off.

Year of publication:: 1928

Scope:: III S., S. 591 - 642

Digitisation:: 2022

Collection:: Economics Books

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Chapter

Document type:: Multivolume work

Structure type:: Chapter

Title:: Statement of B. F. Yoakum, New York City

Collection:: Economics Books

602 AGRICULTURAL RELIEF All that would be required would be small loans for organization expenses. The farmers are devilish poor; they need it. You get 40 or 50 of them together at any place, Chicago or any place else, and you will find they simply are not able to pay their way. They have got to have some organization help; they have got to send out lecturers; they have got to get the farmers to believe in what they are doing. : To organize wheat producers and establish an American Wheat Marketing Board of Control would not cost more than $1,000,000. The amount required for smaller commodities would be less. To cover the operating cost of handling crops and stabilizing prices involves larger sums. That is answering your question, Mr. Andresen. But for that purpose under this plan not one penny would be required of the Government. Pools market wheat for less than 1 cent a bushel. How, then, could the necessary operating fund be provided? It could be done by the farm marketing boards forming commodity marketing pools based on a percentage of the commodities handled. For instance, 2 cents a bushel on wheat of an average crop of 800,000,000 bushels, including seed wheat, would provide $16,000,000. I want to say in that connection that this does not mean that if an organization, which I will show you in the next sentence, is strong enough that that should not be treated by the United States Treasury Department or the Federal reserve. It is the same as anyone else, and I will show you the reason why. It would not be compulsory, because the banks of this country are strong and could furnish every dollar necessary to carry out any kind of a proposition, big or little. Remember, this is a marketing plan. We have a precedent for marketing cost from the Canadian wheat pool, which markets 100,000,000 bushels of wheat for a fraction less than 1 cent a bushel— that is, marketing costs. - An American pool controlling 80 per cent of its total wheat production, or 640,000,000 bushels, could cer- tainly market for 1 cent a bushel, not over $6,400,000—I mean, that is the marketing cost—giving them a net return many times larger than its cost or 1 cent a bushel on our average crop of wheat means to the American farmers $8,000,000. And here is what I wanted to say in answer to this gentleman’s question: Credits are based on values. The first thing a bank asks for when a loan is applied for is value and a balance sheet. It does not make any difference what the organization is, coal, oil, or anything else; that is the first thing, if they want several millions dollars or several hundred million dollars. Could not a great wheat-marketing pool, operating under a charter granted by the Federal Government, controlling the wheat for distributing and marketing purposes, with warehouse and elevator receipts for six or seven hundred million bushels of certified and graded wheat, show a healthy balance sheet? It could show a credit basis as great as any institution in the United States. Therefore, under organized control, its credit would be equal to any other big industrial institution of the country. That is bringing it right down to the final concrete operation. But you have got to have those things; and no big banking organiza- tion or combinations who are lending their money would loan money unless they could know that this wheat was under a marketing control supported by the Federal Government, so far as its charter

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