xt7wwp9t2q46_64 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/mets.xml https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61.dao.xml American Liberty League 37 linear feet archival material English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Jouett Shouse Collection (American Liberty League Pamphlets), No. 67 "Consumers And The AAA: A Study of the System of Regimentation Flagrantly Violative of Constitutional Liberties Which Makes the Consumer the Real Forgotten Man of the Present Administration," October 7, 1935 text No. 67 "Consumers And The AAA: A Study of the System of Regimentation Flagrantly Violative of Constitutional Liberties Which Makes the Consumer the Real Forgotten Man of the Present Administration," October 7, 1935 2013 https://exploreuk.uky.edu/dips/xt7wwp9t2q46/data/59m61/59m61_67/Am_Lib_Leag_67_001/Am_Lib_Leag_67_001.pdf section false xt7wwp9t2q46_64 xt7wwp9t2q46 Pamphlets Available   * *
ik y
Copies of the following pamphlets and ·
other League literature may be obtained  
upon application to the League’s national  
h¤ad¤¤m¤rS=   CONSUMERS AND
Setatemcnt lei Prinailples am} Piierfnoees f
merican i erty eague— ts at orm ;
An Analysis of the President’s Budget Message f   AAA
Economic Security ~
Inflation {
’ The Thirty Hour Week L
The Pending Banking Bill  
ghe Ignldingl Company Bill ‘~
rice ontro _
The Labor Relations Bill ~ * * *
The Bituminous Coal Bill ;
Extension of the NRA Q
The Farmers’ Home Bill ·
The TVA Amendments Y L-
The New Deal, Its Unsound Theories and Irre-
concilable Policies-—Speech by Ralph M. Shaw . _
Hevw go I;/Ieet the Issue—Speech by William A Study of the System of Reg1menta-
4. OTG , . . . .
The Supreme Court and the New Dee] O i t1on Flagrantly VIOIRLIVC of COHSt1»
Ancggezegetter to the Pres1dent——By Dr. Neil tutionel Liberties Whieh Makes
The Revised AAA AmS11dm8I1tS T the Consumer the, Real For.
The President’s Tax Program ’
The American Bar—The Trustee of American ‘ g0ff€1‘1 Man of $116 PI` @561173
Institutions—Speech by Albert _C’. Ritchie g Ad . . .
TwolAmazing Years——Speech by N ilcholas R oose- mlnlstratlou
ve t ‘
Fabian Socialism in the New Deal--Speech by
Demarest Lloyd
The People’s Money—Speech by Dr. Walter E. ,
Spahr /4
J The Principles of Constitutional Democracy and ‘ .
the New Deal—Speech by R. E. Desvernine . ’
Which Road to Take?—Speech by J. Howard 2 1
Pew L `AE C`4 i
The Blessings of Stability—Speech by James W. e Y'  U   _ 4*
Wadsworth j gi "; 
Legislation—By Coercion or Constitution- · 'Z I    "* A
Speech by Jouett Shouse  
Recovery by Statute——Speech by Dr. Neil i 4*;), Le)
Carothers ‘ •
Expanding Bureaucracy
The Imperilment of Democracy—Speech by a
Fitzgerald Hall. I-
Lawmaking by Executive Order
The Test of Citizenship-Speech by Dean Carl `
W. Ackerman .
_ Today’s Lessons for Tomorrow——Speech by Cap-
‘ tain William H. Stayton “
New Deal Laws in Federal Courts
Potato Control A
“Breathing Spells"—Speech by Jouett Shouse
The National Labor Relations Act——Summary AMERICAN LIBERTY LEAGUE
of Conclusions from report of the National NdtiO1,·LalH6adquaYteTS
Lawyers Committee p»
* A NATIONAL PRESS BUILDING
$ WASHINGTON, D. C.
AMERICAN LIBERTY LEAGUE `
NATIONAL PRESS BUILDING I * *
WASHINGTON, D. C. i
  Document No. 67
  · Oct0b¢f» I935
 

 _ | have been a particular subject for experimenta-
. . tion by the AAA.
Consumers and the AAA I 3. Meats have continued to acivance in price
j during the summer and early fal , reductions in
I . . . rices of seasonal vegetables and fruits account-
A“‘h°’“Y‘°_S Cited   ijng for a temporary interruption in the upward
Bureau ef Igeber Siqfesiycs ' trend of the index of all food prices.
The Breehmge Ihelmrerreh 4. Increases in food prices have been out of
The Selerewry of Agrwulture proportion to changes in incomes and have forced
Th6lC<;»b?eh~ei Cvmmettee eh the Cotton Ter‘ l either a shifting to less expensive substitutes or
ii e h Merry _ a reduction in ex enditures for other items in
Ahhuel 7‘eP0’{'r_0f the AQrre’U»uura»Z Adju/$t‘ _ g the budget of conslhmers.
ment Admmretrelheh e 5. The retail price of bread has increased 26
The Aeeieieht Gehrerel Cermeel ef the Treas" I per cent, of which amount the Brookings Institu-
my Department _ l tion estimates one-third due to the processing tax.
The N Greene} Ihduerrrel Cerrfererree Beard   6. The new Potato Control Act must be dis-
The C0·m7hi8Sr0'h eh Recent Semi Trends j regarded or it will mean a very substantial in-
, crease in the price to the consumer for this neces-
j sary article of food.
rk   7. The processing tax on cotton requires an
i extra charge to the consumer of manufactured
The consumer is the forgotten man of the j goods on top of increased raw material prices
present administration. In the less than two and l pegged above world market levels.
one-half years since the enactment of the Agricul— l 8. Processing taxes and control programs,
tural Adjustment Act retail food prices have i while responsible for only a part of price in-
advanced an average of 32 per cent. The creases, have accentuated upward movements
increase since the beginning of the admin-   due to drought andlother factors.
istration is 37 per cent. Prices of some j _ 9. Bunghng pOl1C1€S of the AAA have resulted
foods. have increased more than 100 per cent.   1n_a disloeation of normal relationships among
Through its cotton program the Agricultural Ad-   pr1ces of different foods. _
justment Administration has contributed to i 10. The par1t_y price formula under which the
higher prices of clothing and housefurnishings. i AAA seeke to lift farm prices to the same level
The consumer has suffered under the operation ; as industrial prices is unfair to the consumer.
of a law whose essential features have been held j _ _
to be unconstitutional in decisions in United l Cause Of H1gh PI`1C€S
States District Courts and in Circuit Courts of i N e eee Wm eeeteed thee the ieereeee in rieee
App€8‘l$’ Recent eeeeeemeeee ee the lam Whi(?h·   of foods has been entirely due to the AA)A or
me designed ee eeeemee the AAA eeeeheeeey m A that in the case of meats at least chief res onsi-
eefeee eyee iegee eveee ef ee edljeeeeedeeieegee be l time can be charged tothe cesrési progrsh. it
J°h€.Supr°m6 our ’ jeeeve ee me B 8 SYS em O is indisputable, however, that the efforts of the
regimentation of agriculture even more ilagrantly AAA heave Served te eeeelerete en u were ri e e
eieleeiee gf gieeeeiee egeeegeeee er eee eeeee- r trend caused by uncontrollable refers sh to
rgsgge 31200 nge gjsggac S 1 more upon mg S l make the burden upon consumers greater than it
Salient facts with respect to prices paid by   e WGS; lgigggtfliegfotigglewgsgeeubtedl hee been e
Consumers for Commodities affected by AAA p°1i' major cause of high prices of foodsy particularl
eiee mcludc the following: , meats, during the present year. Devaluation o}f .
1. Prices of food to consumers have been con- I the dollar served to advance the price level for
stantly rising until they have added very greatly commodities figuring in international trade, in-
to the cost of living. cluding wheat and cotton. Shorter hours and
2. The greatest increase in food prices has j higher Wagescales in industry have increased
been in meats, especially pork products, which j costs of d1str1but10n of agricultural products and
2 j thereby added to the price to the consumer.
  3
 i
l

 The clumsy attempts of the AAA to centre] mere than retail prices. The 1ndex of wholesale
prices, initiated in advance of crop seasons and feed P1`1O9S_1S 919 the 111311999 PO1119 ef the Y991 9-1111
without thought of the variations caused by Na- 911OWS 911 111919999 ef 99991 45 P9? 99111- 11"Om
ture, have accomplished but little for the farmer 11/19}% 1938-
but have increased the consumer’s burdens. ACtu&1 Price Increases
Extent of Price Increases The tazlelwhich @110;; shpggsdscglniplirggge
avera e re ai rices o e mg -
The Bureau of Labor Statistics offers a table .1. gipa] gitjes ef lghe United States as computed by
of the advance in p1"i0eS- 1tS iHdeX number f01‘ 1 the Bureau of Labor Statistics. In separate col-
retail prices of 48 foods on September 10, 1935, 1 urnns are prices for the year 1913; for May 15,
stood at 123.9. The basis of the index is 100 for i 1929, which was at the height of the period of
average prices of 1913, which means that the °` excessive prices during the speculative boom; for
food price level now is about 24 per cent higher May 15, 1933, which was three days after the
than in 1913. enactment of the Agricultural Adjustment Act;
At the time the DI'9S9H1? administration took and for September 10, 1935, the latest date for
office in March, 1933, the food price level had which figures are available. All price figures
dropped below that prevailing in 1913. The represent cents per pound except where other-
index stood at 90.5 in that month and advanced wise indicated, The table follows;
to 93.7 in May, 1933, when the Agricultural Ad-  
_ justment Act was passed. The 123.9 level thus Me},15 Me}, 15 Sept 10 Per een.,
represents an increase of 37 per cent since March, 1913 1929 1 1933 ’ 19.35 ’ increase
1933, and 32 per cent since May, 1933.   under
The present level shows a steady increase dur- S_ 1 _ t k 11;;*1-111 P1`1O;011n 9911298 1419* POES1? AAL?
ing the past two years, the index standing at 107 1* Om S 99 · · ···· _
on September 12, 1933, and at 116.8 on Septem- 11§§’1§‘},j1,eSe'f*‘k·· §§·§ gt-Q   @,9-9 {112
ber 11, 1934. The high point in the present year perk Cheeei 1 Q 21, 37Qy 18. 389 113
was 125.2 on April 23. There was a slight de- Bacon, sliced. 27 43.4 21.3 46.2 117
cline during the summer months as prices of 149g O1 191119-- 18-9 42-1 21-4 28-2 32
fruits and vegetables and other seasonal foods   `‘‘‘‘‘‘‘   11§‘i 2,13 gg? 12;
dropped. While the present food price level re- Eggs (`Ci(,2·e1gji 34:5 38:7 29:3 39:2 93
mains below that of the period of inflated prices Butter ....... 38.3 54.5 28.2 32.3 15
existing up to 1930, prices of pork products are M11k (999-11)- 8-9 14-2 19 11-7 17
higher. The price relationship among different gig?1 ‘‘‘‘’‘‘‘   3   ge gg
. foods has been sharply changed during the past Corn meg,1Q Q QQ 3` 53 3:5 5;2 48
two years, the effect being to force consumers to Rolled- oats. . . .8.9 5.6 7.7 37
buy less expensive varieties. Less meat is being R199 ·-··-»·~- 8-7 9-7 5-8 8-4 45
bought this year than last, while more fish and g19,1;E,°€S ‘‘‘‘‘         3
othelig substitutes are being used.  
T e index for prices of meats was 163.9 on
September 10, 1935, as compared with- 104.4 on pr}§€Sm§1iy 118;eigggngroigegisgpigggseetahbige111315
September 12, 1933, and 133.8 on September 11, ,. creased by 32 te 148 per Cent during the epe1.e1_
1934- 1301111111 March and MaY>1933> 1119- index tion of the AAA; that prices of bread, wheat
W99 199-1- The 9-V91`9-39 111919999 111 1911999 ef - iiour and corn meal have increased respectively
meats under the AAA thus has been about 64 1 by 26, 47 and 48 per cent; that the price of rice,
1191 99111- ` which has received special attention in the AAA
,11119 111*19X 191 99199-19 end 199-1<91`Y products, 9 program, has increased 45 per cent, and that the
EYOUP ef 199919 9119915991 by the AAA PI`O3I`9m, price of other foods has increased by varying
. was 151.2 on September 10, 1935, as compared pe1ee11t3g€S_
with 115.8 in May, 1933, an increase of 30 Q
per cent. The index for- dairy products was (]O111;1·O]P1·0g1-ams
106.2 on September 10, 1935, as compared with . -
92.2 in May, 1933, em inereeee ef 15 per Cent. _Consumers feel directly the effects ofthe oper-
Wholesale food prices have advanced even 9110118 Of the AAA through pmcessmg taxes
4 5

 . . Department before the Senate Finance. Com-
shifted to them by meat packers, millers or other - ’
processors and through such part of higher prices Hnedeegeent Aneuet 6’  5‘ Mr‘nJe°kSen greubed
as may be caused by marketing agreements and Fevenue ee d exe? Wlr .m1S°re. elnreeue angerhat
by production curtailments required by Govern- en ineidendee (éggtoglss Edges Iv'] IE. te eelgrenave
ment contracts or compulsory laWs. _ eentribnte te the eeee ef gv in mnt ,9 e 11 Y O
The revenue from processing taxes 1S used to ((It.} ie 1 g ,, e tgerrvr
finance benefit payments to farmers who agree to (tenet Sue}? teeelelemgleg) e;§’ Oriel 1 el" Jeekeehi
Yeddee PI`eduet1en· tion hit poorer classet; hpardegtm d coltsunttli
Foodstuffs on which processing taxes have M ereeieer Wei ht n en ree re Bren {FE W1 n
been levied include hogs, on which the tax is ineernee theen then de u gse Hallie? Wir. Smih
2%: cents per pound; corn, 5 cents per bushel; large ineemee H y p Sma mm les W1
wheat, 30 cents per bushel; peanuts, 1 cent per 2 '
pound; raw sugar, one-half cent per pound; rice, ‘* _
1 cent perpound. There are processing taxes on Meat Prices
tobacco varying from 2 to 6.1 cents per pound. - - . .
The processing tax on cotton is 4.2 cents per Arggebgeggeetserggeceggeeseleg ggggipmces Emcgthri
pound. The amended law authorizes processing products reed the nee The reteg niea S' r mak
taxes Of 30 cents per bUSl'1€l OH I`Y€ 3Hd 25 C€YltS ehgps has gene up 116 per cept, dgrgyie myhepml
ber b¤Sh<->1¤¤ bahtev istence of the AAA sliced bacon 117 iier cetinzt
The total amount collected from processing and lard 148 per cent. The prices of pork chops,
taxes gives an idea of the extra charge that has bacon and lerd are even higher than in 1929 ’
been passed on to consumers through this item- The processing tax has been largely passed gn
By the end of the Y·e‘a1` 1935 the tote} collected to consumers during the present season althou h
from all processing taXes since first levied ih at first, before drought sent prices skywardgit
1933 Will be upwards of $1,000,000,OUd About Was passed back to farmers in the form of lovver
twe-thirds of the total affects food. The great prices for their hogs. The tax is equivalent to
bulk of the amount has been passed on to con- an excise tax of 20 per cent or more on the hi h
Sl1I(§1€I‘E, alnhouglr in Cponie inretances the tax has prices of hogs recently prevailing It amounted
ha t e e ect o re ucing t e price to farmers to a tax t ‘
and in others it has been absorbed by the vvere1ow,Of as much as 40 per Cent When pmces
processors. As part of the basic cost of a raw material
It would be impossible to compute the waste used in a finished food product, the tax, Which is
in dollars and the time lost by supposed bene- on the live weight of the hogs, tends to pyramid
ficiaries in the administration of this Act. during the various stages before it reaches the
The commodities upon which processing taxes hnal Consumer- The 2% Cents per pound tax
are levied are those upep Which benefit pay- may easily be multiplied several times in the
ments are made to farmers. Milk and a number Yeten Pmee of Pork products. .
of fruits, nuts and vegetables have figured in The eeI`h‘heg eurtahment program ofthe AAA
marketing agreements. There has been a com- nndenbtedtvhae had Semethihg to do with Sky-
pulsory reduction in the acreage of cotton and T mckemns Pneee of Perk Products, although the
tobacco. The new Potato Control Act, Which is dhengnt et 1934, Whleh Yedueed feed Supplies, is
included in the amendments to the Agricultural ~ regarded e-S the Chlef factor. The AAA bought and
Adjustment Act, is eempuleery slaughtered 222,149 sows_ and 6,188,717 little pigs
The eentrel nreererner invelvine rednenen in in the fall of 1933. Th1s wholesale destruction
eereeee er, velnme ef nrednenen, heve bv ne   of live animals was followed by contracts under
means accomplished all that was predicted in the Whleh the Gevetnment bald tahmere not to raise
way of stimulating advances in prices. The con- ples eee Cem: _ _
trol programs have added to the cost of living by 1 Opmums dlffer as te Whether the 1n'adv1eed
inereeeed nriee bnrdene r e aughgernofterows and little pigs, an action made
Processing taxes bear more heavily upon the igrcgtree fe? re drelnghn Of. leger een be blamed
poorer classes than those with large incomes, AAIK eer_n_rt3e€S€n e ie pteeee n any event the
according to the testimony of Robert H. Jack- hee e reveeeei int enmren prggram as a Whole t
son, Assistant General Counsel of the Treasury gg B S Oleege el bees attmbntable
6 .

 to the 1934 drought. Storage stocks of pork and least one-half, the processing tax for at least one-
. lard this summer were the smallest on record. third, and other factors for a smaller amount.
The number of hogs over six months of age was For the still smaller increase in wholesale prices
30 per cent less than a year ago. of flour, higher wheat prices account for some-
Retail prices of beef have advanced less than what more than half and the processing tax for
those of pork. The price of sirloin steak and rib somewhat less than half."
` roast has gone up 44 per cent, while that of round On the basis of the computation by the Brook-
steak has increased 50 per cent during the life ings Institution, the processing tax represents a
of the AAA. No plan of production control has hidden tax of 7 or 8 per cent of the present retail
been applied to beef and there is no processing A. price of bread. This is a tax which no Congress
tax on cattle. One factor in the advance in   would have the temerity to levy directly upon
prices was the reduction in the number of cattle consumers. Recent increases in the pric·e of
through the purchase by the Government of   wheat and a prospective shortage of high-grade
more than 8,000,000 in areas affected by the wheat promise a material advance in present
1934 drought. The cattle were slaughtered and costs of bread.
the meat used for relief purpos·es. The num- The Brookings Institution belittles the effects
ber purchased was about double the number said upon prices of the wheat control program,
by Government officials to represent an undesir- under which the AAA has paid farmers not
able surplus. The result was that stocks were to raise wheat. The assertion is made in its
reduced too much. It is contended by some au- study that "the maximum price effect rightly to
thorities that it was not necessary to slaughter be ascribed to all AAA operations combined was
so many cattle. to hold the average price of wheat in 1933-34
Sheep have not been involved in control pro- some 2 or 3 cents a bushel above what it would
grams. The increase in the price of leg of lamb otherwise have been; and even this cannot be
has been 32 per cent since the AAA was inaugu- demonstrated." According to this study, depre-
rated. The price has been affected to some ex- ciation of the dollar, which affected commodities
tent by purchases of sheep by the Government figuring to an important degree in foreign trade,
in drought areas. even though its influence was relatively slight on
Recital of these. facts offers a comparison be- ~ other prices, was responsible for about half of
tween the prices for hog products on which a the increase of 35 cents per bushel from the
processing tax has been collected and the prices weighted average farm price of 37.9 cents in
for beef and mutton on which there has been 1932-33 to 73.3 cents in 1933-34. A short crop
no processing tax. This clearly shows that the accounted for most of the rest of the increase.
processing tax is paid by the ultimate consumer The elaborate program of the AAA thus is held
and greatly increases the cost of food. to have been ineffective. AAA control has had
r but little to do with the recent upward move-
Bread Prices ment of the price of wheat.
The art la ed by AAA policies in hi her re- ·
tail priiies oi) biiead and wheat flour, whiigzh have Dalry Products
advanced 26 and 47 per cent respectively since Marketing agreements and licenses through
1933, is analyzed in a study by the Brookings which an attempt has been made to control the
Institution on Wheat and the AAA, recently .» price of milk have been typical of bungling
published. J policies of the AAA. Farmers have not bene-
A quotation from this book, page 364, follows: fited materially; neither have consumers suf-
"Of the net increase in retail bread prices,   fered avery great increase in prices. Accord-
which from early 1933 to the end of 1934 appear ` ing to the recent study by the Brookings Institu-
to have risen about 2 cents a pound, the process- tion on The Dairy I ndastry and the AAA, little
ing tax was responsible for at least- one-fourth tangible result has been achieved in either pro-
and possibly a third; the advance in wheat duction or marketing control outside the reduc-
prices, for one-third or more; and other factors, tion in the number of excess cattle through
· including costs of other ingredients, for about Government purchases. The milk marketing
another third. Of the smaller increase in retail agreements and licenses have not worked satis-
fiour prices, higher wheat prices account for at factorily.
8 9

 A sidelight on the manner in which the AAA . . .
has groped in the dark, consumers being at the BY peymg fermere lll the S°P‘lh ret te mlee eel"
mercy of its experimentation, is found in a com- J°ell¤ ellleremg acreage eullellmene bY the pen'
ment in this Study cn the deity industry that ue alties of the Bankhead’Cotton Control Act and
Gcvemment agency Wee called upcn tc tmdeI._ loanmg on the farmers cotton amounts greater
take something which nobody knew now to do thee the Weed enea the Gererameathee fereed
and which perhaps could not be done at all under d°m€SJ°1°.P“°€S up te 3* level aheet twree ae lllgll
existing Hmiteticnecr It Wee added that trthere as prevailed at the time of the enactment of the
were those on the outside who thought they knew AAA .
how; but events since have proved that they were · tOCpe;;u§e;;S eliiggleeligggdgolgegglaeetzn (ze/lé§e‘;
77 r
eslgvrgtlligétigiealeglbslgley gi? are ceuect in their cost of raw material higher than the world price
assumption that the new amendments to the law _ but bleh eaeeah elee te aheerh e" plmeeeeelllg lex
will facilitate operation of the milk control pro- ef   eeete Per peulld .EXeepl° fel lelelgll eelll`
gram, Consumers may expect to feel the effect pet1t1on, which has seriously affected domestic
betcre long in the term cf higher pricee The manufacturers, consumers would have had to
amendments Specifically permit ·t’h,€_ taxing cf bear a heavier load than has actually been the
prices paid to farmers for milk. The higher ee°ee‘ Ther have benellted te eeme extent at
prices must be passed on to consumers. l’lle[,e;pelg;e)Ie3l gfdtetgegeggliggeletlclexllte lnduelsg
~ mm1 ee on e
l°°““"°°S €§£E°§r rliirxltléio li5l§`§l"t’ €“bdll€“? l° it?  
Petateee are ene ef the few feeds which have ootober rein the ooétsogi iegw rilratelrlileii tneitidang
nw i¤01‘€8»S€d gF€3@lY in PI`iw· The &V€I`&g6 1`€· the proeessing tax increased 100 per, cent and
tail price has nct changed substantially during since that time the trend has been further up-
the Dwt twc YwI"S· inasmuch 35 H0 9·Y@i0l€ cf ward. In the same report it is shown that the
feed is m0Y€ €SS€¤@itt1 tc w¤SUm€1`S g€¤€I‘hHY, processing tax represented about 11 per cent of
they have 1“€nS0H tc be @h9»¤kf¤l fer @hiS- all costs of 108 cotton spinning companies for
The Pctatc C0H1¤1`01 A0@, signed by @h€ P1`€rS·i· which statistics were assembled. It was testihed
dent as part cf the amendments tc the- Agricuh before the Cabinet Committee that the process-
tural Adjustment Act on August 24, 1935, has for jog tax Orr avorago ooarao goods amounted to
its purpose a boosting of prices. Publicity given about 15 por cent, of the total (:0,81-I of the goods.
this legislative monstrosity has caused such a The highgr Costa of mamrfaoturo of cotton
$@0Ym Qf PY9t€S@ @h9·@ @h€ 3»dm1¤1SU`&’¤10¤ IS @I`Y1¤g goods have raised the price to a level out of line
to avoid wide enforcement of the law. Never- with its Customary ra]atrb.rrSbjp to general Com-
theless, it stands cn the statute bccks, a threat mcdity prices which has acted as a deterrent upon
to those who oppose the follies of the AAA. consumer purchases,
The goal upon which those responsible for the In an official statement by the AAA it has
Potato Act have had their eyes fixed is a price to been aatjmatbd that tho Cotton prOC€,SSing tax
the farmer nearly 100 per cent higher than aver- adds 1.3 cents to the cost of cotton required to
ngé P1‘1w§ 1`€w1"1UY PI‘€V3»1l1¤g- _ manufacture a yard of muslin, approximately 3
I If retail prices are advanced proportionately, cents for a work shirt and about 8 cents for the
it will mean a very considerable addition to the cotton required to manufacture a pair of ove·ralls.
budget of most consumers. ‘ _ ` The_ statement did not attempt to show actual
Ilnder the Potato Act consumers are denied the addrtional cost to the consumer by reason of un-
privilege of buying their potatoes where and how avoidable pyramiding in th·e process of distribu-
they please. The purchaser of potatoes, which — tion. Retail prices of many cotton goods have
are not packed in prescribed containers and increased from 20 to 50 per cent and even more
properly stamped, 1S equally guilty with sellers under the AAA.
and faces arjail sentence as well as a line. I
Cotton Consumers Strikes
The AAA has contributed to higher prices of _ HOUSBWIWS have _1"ww¤ tc b<·> &W&I`€ of the
industrial products through its cotton program. lnereaee m retart Prices cf feed, an 9»dV&Y10€ so
10 great in recent months as to cause consumers’
11

 strikes in New Y01°ki Chicage, D0’01`0l’0i Sb- Leuis, The law sets up a policy to "reestablish prices
Pittsburgh, Les Angeles and ether cities . to farmers at a level that will give agricultural
These ieining in these Pl°0t00l¤S against 1n0unii· i commodities a purchasing power with respect to
ing living 000*50 have felt ag€l`l0V0d because articles that farmers buy, equivalent to the pur-
prices ef feed a1‘0 advancing n'101‘0 rapidly than chasing power of agricultural commodities in the
their ln00n10S- base period." The base for all commodities ex-
Food &CCOl11'1l»S fOI` &lOOl1J0 O1'1€-l'1lllI'Cl of the 3iV€I`- ggpf, tgbglggg and potatoes is thg pl·g-Wg,I· pgyjgd
age family budget- An increase ef abeut 05 per from August, 1909, to July, 1914. For tobacco
cent in the cost of food has meant that families _ and potatoes the base period is the post—War
with fixed incomes have had to reduce other decade from August, 1919,to July, 1929.
0Xl00ndll0lll“00· The so-called parity price formula contem-
The National Industrial Conference B0a1`d plates a price per bushel of wheat or pound of
estimates that the budget ef the average family pork which will go as far toward the purchase of
among small wage earners in the United States ei farm implement eii ei pain el Shoes as a bushel
is   GS follows: food   per 0€I1l`», housing Of Wheat Or al pound Of pork Would go in the pre-
20 per cent, clething 12 per cent, fuel and light war period. The identical pre-war prices for
5 ]001` cent, and sundries 30 P0? cent- farm products are regarded as not sufiicient if
On tbla ba010 the n01‘nlal eutlay f01` feed frem prices for industrial products are now on a higher
a $2,000 1n001n0 is $000- An 1n0l‘0aS0 ef 35 P0? level. The unit used in the computation is the
cent in feed prices Weuld add $231. The cen- bushel or the pound of the farm product rather
sumer has no alternatives but to select less eX- than the yield per acre or the aggregate cash
pensive foods or sacrifice other items, such as revenue per worker or per farm.
0l0J0blng and sundries- The consumers suffer under the parity price
The average family uses 75 peunds ef perk device. The attainment of parity prices may
preducts and 150 peunds ef beef preducts an- mean a relatively better status for farmers than
nually An increase in the price ef perk frem they enjoyed in the base period instead of an
20 te 40 cents per peund means that a $15 item equivalent status. The extra oost is passed on to
in the annual budget is ln01“0aSe0l te $0- Sim- the consumers either through higher prices or by
ilarly, an increase inthe price of beef from 25 _ means gf the processing teX_
tg  éielrgts per peund increases an item ef $37-50 Tremenrllousa strldes have been made in recent
· · ears in t e eve o ment ‘
These ivhe have investigated the pessibility ef gconomical methodsldf agriY000SS0rS, Whelesalere er retailers. The sible for American agriculture since the War to
]0l`0nt§ ef 851 meat l0a0klng 001nPanl00 Wbl0b increas·e production 25 per cent without any in-
submitreports to the Department of Agriculture eienee in nei~enge_ There had never been an n_
avaragecll laet year apout pt cent and a half per thing like that before.,) y
o ar o sa es or ony a raction of a cent per E T - · .
reeed ef meet edd- Prette ever a ten-rear Trend; iintiiitf igOIiiiI1§§SStfEt°§ni1§ GS Biliiinifiiiii
period have averaged not more than one cent out ut GI, Work I, in I, d 22 gt b ,6
per dollar of sales. Net profits of meat retailers l thapavlga B Ol Sth Cdgasfl 19%% rlggli Bdwiin
in recent years are estimated at from 2 to 2% decade 19§2_193l 6 Ca B — an 9
cents out of each dollar of sales. The retailer . ' . .
pays the wholesaler of meats about 75 cents out In the heh? ef these fimts 0 rarity pmce repre'
of every dollar he receives from oonsumers. or l eeeees relative rereheees l°‘?W€‘". ef at bushel Of
the remaining 25 cents, nnii or more is nan in- e eeeee ef e term eeeeeeitr is fer frem ee
wages and most of the balance for other ex- ·*‘°°“mJ°"’ gauge with Wllmh l’° mfasum that l”""S‘
penses incidental to distribution, including taxes. ;g°S§;Z°li;fg£€f,?l§`gn$;;r1n lsgxélgvggl that
. r acre
Parity PI-icgs and abgreater production per worker should make
- - . . possi le a larger cash income than in the base
prllélgg gliggdtgllgective ef the AAA IS te raise period even if prices are lower. The parity price
_ gs armers sell to the level of formula dallas to th d
the things they buy. consumers e a vantage
. 12 13

 . Consumers the Victims
Whiihdthey rhrrld have by reeeen rr Improved The consumers of the country, who comprise
mei) 0 er .11 h th d f th . the entire population, are paying the costs of
t eneemere rrrrr Wl ieee e rr .e elf misguided experimentation. The picture IS by
readmill under AAA policies. Successive pr1ce no means as rosy as painted in the Pmsidcmos
rdrrrrr; rf rrrd Wrrrerrprrer rrrrrrrr rr rrd- speech at Fremont Nea-aaka. The AAA nae
lee; (ihelil prgeeie dEVery Slime the pmeee O; achieved no lasting benefits for agriculture. Its
in rr Heder? rr S e Vegee elpem Y ;rrrrr;; manipulations have caused dislocations in the
gg; rrrtr; S are move t up`. tneeuttue frr e economic structure which counterbalanc-e_ any
. rrr rr peegmm rr ere rrr eee e e many A possible temporary advantages. The experience
1ndustr1al products, each boost 1n the price of a Of Umm rowers Whovsg market has been d€_
farm product will in turn force a further upward mmpalizcd le the ’ mduct Of land divgrted from
revision of parityprices. Consumers, who them- A Cotton mbaigco Wiimavt pmnuts and Othgl, com
;;1rrr may have meemee ne errrrrr thee befere trolled crops, has demonstrated that it is impos-
e Werr have been berdeneel m rrr mee meeenee sible to stop with half-way measures. The inevi-
by .h.1gheI` pmeee rr mduemel preeueee eee rr table end is complete regulation of all agricultural
policies inaugurated by the present admmistra- production Consumers than would pay the
;;;<¤hrr;<,f;*dr¤,§ ligehNR‘?‘ dNe§e* they herrgrrr prices fixed by a Socialistic Government. In its
e. eug . g rr rr p leee e Prem e e program of higher prices, subsidies and regimen-
subs1dy for agriculture to compensate for these tation the AAA has sacrificed emcigncv a_ pOS_
ggieggg igsgezroilj  £;AO3luetS‘ Tlgrr grrr sible lewer level of costs and farm independence.
’ . e Y . ra eeee rr I rr enr Be·sides being unfair to domestic consumers, the
at least, will be reflected in higher industrial hi h rims have Served ,00 destm fomi H
r;rr;; Wrirr ir rrrrr Wm rrqrirr rrr rdirrrrrrrr miekete. The eeannenranen er aanenraae ee
O e panty pmeee . flagrantly violative of liberties guaranteed by