216 
AGRICULTURAL RELIEF 
I think we will all agree that when you stimulate the price of the 
commodity on the market you also stimulate the price of other 
commodities, and theréfore it is in the Interest of everybody to bring 
about balanced production. There are some of them who adhere 
to the idea advanced some years ago, but which has been abandoned 
by nearly everybody that tried it out, that it is not possible to bring 
about balanced production. 
We have to take all of these important factors together that enter 
into determining production. 
Mr. MorGAN. Mr. Chairman, in my opinion, under the MecNary- 
Haugen bill this question of increased production will largely solve 
itself. You take our people in tha last year or two, when the tobacco 
was low, they were going in for dairy cows, and putting up creameries 
in that country, and straining for something else, trying to diversify. 
Personally, I do not think much of diversification, as the word is 
generally understood. 
The CuairMAN. Do you not think the larger the surplus the lower 
would be the price, that that would be the greater argument in favor 
of balancing the production? 
Mr. MoRrGaN. Yes, sir; and I think under this bill if you make corn 
and wheat and other farm crops profitable there will not be the ten- 
dency to overproduce. 
Yr. Oyen I take it from your argument that you are strongly 
in favor of cooperatives? 
Mr. Morgan. Yes, sir. 
Mr. CLarxE. Do you believe levying an equalization fee upon a 
commodity like your dark tobacco will encourage or discourage the 
cooperatives? 
Mr. Morgan. I think it will encourage them. 
Mr. Crarke. What is the inducement for those who are not 
members now to come into the cooperative organization if an equal- 
ization fee is provided? 
Mr. MorGan. Tobacco is sold from the auction floor, and when he 
sells that tobacco, the average grower has not the slichest idea what 
tobacco 1s worth. He does not know its value and hardly knows 
hal Frade 1t I But under the association plan, when he delivers 
hs go etn rg ave expert graders who put on that tobacco what the 
Frade : ne Len every buyer knows what it is and it can be made to 
Mr. CLARKE. A - 2 oli] ‘ 
IAI re there not graders to-day existing outside of your 
Mr. Morgan. There are graders, but they do not grade tobacco 
on the loose-leaf floors. The tobacco is is put up and sold and 
the EW does not know what grade his tobacco is. The “pin 
Loo! er is the man who goes around on that floor watching for that 
usiness, watching for a man who is selling too 1 d then he will 
buy it and put it up again and sell it 35 he I a 
lite Tn 0 Sore Los br sell 1t. So there is that incentive to 
Mr. Apkixs. In listening to rion. : 
Ing to carry this at the expense Te the oper: te vit have had in toy 
ment correctly, it is that you perh NE ER got your state- 
per cent of the o rou perhaps could go out and sign up 50 
e growers this year, but you do not feel like d 
because they could not o ) y o not feel like doing 1t 
arry the load for all of the production. .