Globe-Gazette from Mason City, Iowa on March 7, 1934 · Page 25
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Globe-Gazette from Mason City, Iowa · Page 25

Mason City, Iowa
Issue Date:
Wednesday, March 7, 1934
Page 25
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MASON CITY GLOBE-GAZETTE ELEVEN A. A. A. ATTEMPTS TO RAISE PRICES Disparity in Prices Attacked Plan to Raise Standard for American Farmer. By DEAN W. C. COFFEY University of Minnesota. The Agricultural Adjustment Administration is attempting to perform for American agriculture what the National Recovery Administration is attempting to perform for American industry. It is trying to raise the level of prices which farmers receive for their products to a point at which they can pay obligations incurred during the World war and the decade following, and to provide them with an American standard of living. The immediate object of attack in this program is the disparity which exists between the prices which farmers receive for their products and the prices which they have to pay for their necessities of life. This disparity exists, for the most part, because farmers have not learned to control the factors which determine the profits of their enterprises to the same extent that industrial groups of this nation have learned to control theirs. Changed Status. Let us turn now to the international situation. The World war changed the status of the United States from that of a debtor nation, owing about $3,000,000,000, to a creditor with about $14,000.000,000 outstanding. In choosing whether the debt payment should be made to us in goods or gold, our nation decided on gold, with the result that some of our best customer nations were soon drained of their gold supplies. For a while, American investors helped to maintain the purchasing power of these nations by lending them money, but when they were unable to meet their payments of interest and principal, lending ceased, and the whole structure of our export trade collapsed. Under the stress of meeting debt obligations, and spurred on by the fear of fresh out- breaks of war, these nations have developed their own industrial and agricultural resources to the limit. By enacting high tariffs, import quotas, production bounties and other trade restrictions, they have reduced the volume of their imports greatly. This situation has helped to bring about a heavy shrinkage in the demand for American export commodities and the consequent piling up of these products in the home markets. Progress in the recovery of foreign markets for agricultural products promises to be slow, in the light of the above circumstances, and until substantial headway can be made, the administration has adopted the policy of aiding farmers in adjusting their production to the demands of the home market, plus such surplus as can be sold abroad for a fair return. Aids Farmers. To aid co-operating farmers financially until the curtailment in production has increased agricultural prices, the administration has adopted the policy of making adjustment payments to these co-operators. These payments are determined in different ways for different commodities, but all afford the farmer a higher return than he could hope to obtain by maintaining past levels of production. In contracts which continue over a period of two or more years, as in the wheat contract, provision is made to vary these payments from, one year to another as the margin between the market price of the commodity and its "fair exchange value" narows or widens. Eventually, world markets will be regained and agriculture once more will be able to resume production on at least the pre-war scale. The program of the Agricultural Adjustment Administration, t h e r e f o r e , should be looked upon as an emergency program which will pass with the restoration of normal trade relationships. HAVE MOKE VALUE Two pounds of wheat have about as much value in the poultry ration as a pound of bran and a pound of flour mid- dlings. Therefore, when prices are the same, it is cheaper to feed the wheat at home than to haul it to market and haul back wheat by-products. It Won't Be Long . . Farmers of this community will be out working in their fields again before many more weeks. You will prepare the soil, put in the seed, and look forward to another harvest. It's going to be a busy season, as usual, for you and a brighter, more encouraging one, too. As the spring season opens North Iowa farmers will want good banking connections. We cordially invite you to bring your financial problems to us. The officers of the Northwest Savings Bank will be glad to consult with you at any time. Helpful service awaits you at this friendly, alert, rapidly-growing bank. N O R T H W E S T S A V I N G S B A N K , Demand for Horses of Percheron Type Increasing Rapidly The boom in the draft horse business has brought 180 requests in the last 15 days into the Percheron society office "at Chicago, from men who want to buy purebred Percherons. Most of these requests were for pairs of mares. Since the last census shows that Iowa stands second of the 40 states in numbers of purebred registered Percherons, the Percheron breeders of Iowa can look forward to reaping a large share of the profits in this new wave of draft horse buying. Ellis McFarland, secretary of the Per- cheron society, says that draft horses are already scarce and that prices are rising rapidly. Regulation on Cartons and Bags There is one regulation that applies lo cartons and bags. It is the 1913 "net weight" amendment of the food and drugH act of 1906. It stipulates that the net weight of the contents must be printed on all packages of food. Yesterday's Farm Burdens Should now be the least of your worries. We can lighten these affairs for you if you will only give us an opportunity to bid on your needs. Our personal experience in various soil conditions places us in a position to assist you in selecting the right kind of equipment adapted to this territory. We have a complete line of 1934 Farm Machinery on our sample floor, and are inviting you for a personal inspection. When in town call on us and make yourself at home. We also carry a most complete stock of I. H. . repairs for your convenience. MaSOn City Imp. Co. Mason City Phone 462 Clear Lake Grain Co. Clear Lake Phone 23 Authorized McCormick-Deering Dealer GEORGE P. NEWMAN, Prop. To All Users of PETROLEUM PRODUCTS We, the Farmers Co-Operative Gas and Oil Co., located in Mason City and Dougherty, and operating over the county, wish to announce to the people who - are not acquainted with us ? that we handle a complete line of petroleum products. We give tank wagon service on the highest quality gas and oils. ur Prices Are Fair FARMERS CO-OPERATIVE GAS AND OIL COMPANY 426 FOURTH STREET S. W. PHONE 299 Our Profits Are Your Gain

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