ment Act and agreed to come out against it they would not cooperate with us. We have asked them on several occasions if they would come into the farm-conference group, because they represent many farmers in the country. Through what is known as the "Farmers' National Grain Cooperative " there are 7 or 8 or more farmers' union States of the far West which cooperate with the grain group. In other words, they have several farmers' union leaders in our members, not as a national farm union group, but as part of one of the national cooperatives. Mr. GOLDSBOROUGH. I heard your statement up until the time you said what you were going to recommend, when I had to temporarily leave the room. Did you intend to suggest to the committee how you think, or how your organization thinks your suggestions, if adopted by the committee, should be incorporated in the bill? Will your suggestions replace any title of the bill, or will they consist of addi tional titles? Mr. O'NEAL. Congressman Goldsborough, of course, that is at your option or the option of the committee. We suggested it as an amendment of section 2, or at any place where you think it should go. We definitely want it as a part of the bill, but anywhere you think it should go. We offer it as a suggestion which we think will make the bill really worth while. You not only want to set up this machinery, but you want to be able to handle the machinery so it will be effective. Without any criticism of the bill at all, we think, in order to make it complete, it should contain this amendment. Mr. FORD. You set up the income of the farmers in 1918 as $18,000,000,000; ; is that correct? Mr. O'NEAL. 1919, $16,900,000,000. Mr. FORD. And you set up the farmers' income in 1929 as $11,000,000,000? Mr. O'NEAL. Yes, sir. Mr. FORD. And in 1934 as $7,000,000,000? Mr. O'NEAL. Yes. sir. Mr. FORD. Do you not think the income of the farmers in 1918 was largely influenced by the fact that there was a tremendous foreign demand for cotton, corn, wheat, and tobacco? Mr. O'NEAL. Yes, sir; that was a great factor. Mr. FORD. And the lack of income in 1934 is measurably due to the fact that there is no longer any foreign demand for those products; and also, did not the refusal or inability of foreign governments to pay their debts have some effect on the situation? Mr. O'NEAL. You know it is mighty hard to ask the farmer why he did not pay his debts. Mr. FORD. I did not mean the farmers. Mr. O'NEAL. I think it was because of the great lack of buying power in those nations, and because we have become a creditor Nation. Those people are hungry over there, and if they had the money to buy they would buy. If we had a tariff system that would allow us to trade and a monetary policy that would help us in trading, as I said in my statement, I think there would be a different situation. But I have shown that we have had quite an increase in foreign trade under the present monetary policy. But if you go into any little corner store down town you will see goods marked "Made in Japan" on the counters. If you go to some of our eastern cities you will find agricultural commodities that have come in from Europe. Mr. HANCOCK. Do you think that the Banking Act of 1935 should contain a declaration of policy? Mr. O'NEAL. Yes, Congressman; I think it should define our monetary system as well as furnish the machinery for handling sound money. Mr. CLARK. Have you seen the proposed amendment that Governor Eccles presented as a suggestion to this committee? Mr. O'NEAL. I do not know that I have. There have been so many suggestions, and the testimony is so voluminous, that I do not know whether I have seen that or not. Mr. GOLDSBOROUGH. The suggestion was as to a declaration of policy. Mr. O'NEAL. I have not seen it. I would be very happy if he would adopt ours, which has been so effective. Mr. CLARK. Of course, he does not believe, if I understood his testimony correctly, that through monetary control alone you could bring about a stable price level. As I recall, his amendment declares it to be the legislative policy to bring about a stable price level, full employment, and stable business conditions, insofar as it can be done through monetary action. I was wondering what your position would be as to that. Mr. O'NEAL. That is fine. I hope the distinguished Governor, whom I have not had the pleasure of meeting, could recommend ours. That was the purpose of the Goldsborough philosophy, as proved by this administration, and it has certainly shown what it will do. There is no question about that. It seems to me that the distinguished Governor of the Federal Reserve Board cannot afford to miss overlooking what other great nations are doing today. In other words, we are not so awfully smart after all. The other fellows got to this before we did and they have had some remarkable results. It seems to me that should furnish a precedent for the Governor of the Federal Reserve Board. Mr. CLARK. He has no objection to a declaration of policy, only he does not believe that you can put a specific declaration in the bill, that you must leave some latitude, rather than try to fix any one year as the desirable year to aim at as far as the price level is concerned. I believe that is your suggestion, too. Mr. O'NEAL. Our suggestion is the period from 1921 to 1929. Mr. CROSS. I want to get your reaction to this thought. I am of the opinion that the Federal Reserve Board, while I have great faith in the present Governor, that Board, according to my view of the situation, are naturally inclined, judging by the previous testimony of members of the Board, to have the idea that they are to look after the banking of the country. The banking of the country is a private moneymaking institution, after all is said and done. They do not feel, it seems to me, that they have a direct responsibility for stabilizing the value of money, or regulating the value of money, and furnishing the country with an adequate medium of 592 exchange. So I think it would be far better if there were an independent agency representing Congress, furnishing the country with an adequate medium of exchange, whose prime purpose is that not of the business of banking, or dealing with so much with banking. What do you think of that? Mr. O'NEAL. Sometimes I frankly feel that the Federal Reserve Board, from my observation as the head of a farm organization and a private citizen, has not loved agriculture very much, and has not served banking very well. That would be my answer. com In other words, I was thinking, whatever the wisdom of your mittee might decide, of the sort of authority you have, that you should follow the Constitution, and really coin money and regulate the value thereof, and keep it in the hands of an agency that serves the people of the United States, and no particular group. Of course, the bankers have their rights as public servants, but at the same time, no Congress or President should take away the constitutional authority given you gentlemen here to regulate money. I think I will have to ask you to excuse me now, Mr. Chairman, as I have to go to the White House. If I may be excused, I would like to leave, and let you hear some of the other witnesses. I will be glad to come back this afternoon, if you like. But we have a couple of other farm witnesses here, including Mr. Sexauer, of the Dairymen's League of New York, who will speak for the Cooperative Council, and Mr. Ed Foster, of New York, who will speak for the American Farm Bureau Federation, as the secretary of the New York State federation. So may I ask you to excuse me at this time, as I am due at the White House at 12:15 o'clock. The CHAIRMAN. We will excuse you now. assistance to the committee. We thank you for your STATEMENT OF FRED H. SEXAUER, PRESIDENT DAIRYMEN'S LEAGUE COOPERATIVE ASSOCIATION, NEW YORK CITY The CHAIRMAN. We have Mr. Sexauer of the National Cooperative Council, whom we shall be glad to hear. Mr. SEXAUER. My name is Fred H. Sexauer. I am president of the Dairymen's League Cooperative Association, representing the National Cooperative Council. In presenting a which I have here I will be very glad to have anyone ask any quesbrief statement tions about it as it is read or afterwards if they'so desire. The CHAIRMAN. You may proceed. Mr. SEXAUER. The National Cooperative Council, which is the organization which I represent here today, is composed of the large national commodity organizations handling such commodities as cotton, milk and its products, citrus and deciduous fruits, field seeds, rice, livestock, nuts, poultry, tobacco, vegetables, melons, wool, and associations of organizations purchasing farm supplies. In addition it has as associated members several State agricultural councils and State associations of cooperative organizations. These national associations are in turn made up of several hundred territorial cooperative associations. Thus, in total representation, the National Cooperative Council represents a large percentage of the total cooperative business in the United States. (A list of the member organizations is as follows:) MEMBERS OF NATIONAL COOPERATIVE COUNCIL CITRUS FRUIT DIVISION California Fruit Growers Exchange, Box 530, Station C, Los Angeles, Calif. (including 230 cooperatives): Mutual Orange Distributors, Redlands, Calif. (including 30 cooperatives). COTTON DIVISION American Cotton Cooperative Association, 535 Gravier Street, New Orleans, La. Alabama Farm Bureau Cotton Association, Montgomery, Ala. Brazos Valley Cotton Cooperative Association, Bryan, Tex. California Cotton Cooperative Association, Box 416, Bakersfield, Calif. Georgia Cotton Growers Cooperative Association, 746 Glenn Street SW., Atlanta, Ga. Louisiana Farm Bureau Cotton Association, 535 Gravier Street, New Mid-South Cotton Growers Association, Box 44, Memphis, Tenn. West Texas Cotton Growers Association, Abilene, Tex. DAIRY DIVISION National Cooperative Milk Producers Federation, 1731 Eye Street NW., Washington, D. C. (consisting of the following member organizations, together with approximately 900 affiliated local cooperatives): Berrien County Milk Producers' Association, Benton Harbor, Mich. California Milk Producers' Association, 947 Maple Avenue, Los Angeles, Calif. Cedar Rapids Cooperative Dairy Co., 560 Tenth Street SW., Cedar Rapids, Iowa. Challenge Cream & Butter Association, 925 East Second Street, Los Angeles, Calif. Champaign County Milk Producers. 24 Taylor Street, Champaign, Ill. Colorado Dairymen's Cooperative, Inc., 642 Lawrence Street, Denver, Colo. Connecticut Milk Producers Association, 450 Asylum Street, Hartford, Conn. Consolidated Milk Producers for San Francisco, 740 Pacific Building, San Francisco, Calif. Cooperative Pure Milk Association, Plum and Central Parkway, Cincinnati, Ohio. Coos Bay Mutual Creamery Co., Marshfield, Oreg. Dairy and Poultry Cooperatives, Inc., 110 North Franklin Street, Chicago, Ill. Dairymen's Cooperative Sales Association, 451 Century Building, Pittsburgh, Pa. Dairymen's League Cooperative Association. Inc., 11 West Forty-second Street, New York, N. Y. Des Moines Cooperative Dairy Marketing Association, 1935 Des Moines Street, Des Moines, Iowa. Dubuque Cooperative Dairy Marketing Association, Inc., 1020 Central Avenue, Dubuque, Iowa. Evansville Milk Producers' Association, Ine., 214 Boehne Building, Evansville, Ind. Falls Cities Cooperative Milk Producers' Association, 229 Bourbon Stock Yards Building, Louisville, Ky. Georgia Milk Producers' Confederation, 156 Alabama Street SW., Atlanta, Ga. Illinois-Iowa Milk Producers' Association, room 24, Schmidt Building, Davenport, Iowa. Indiana Dairy Marketing Association, Muncie, Ind. Inland Empire Dairy Association, 1803 West Third Avenue, Spokane, Wash. Interstate Associated Creameries, 1319 Southeast Twelfth Avenue, Port land, Oreg. Inter-State Milk Producers' Association, Inc., 219 North Broad Street, Philadelphia, Pa. Land O'Lakes Creameries, Inc., 2201 Kennedy Street NE., Minneapolis, Minn. McLean County Milk Producers' Association, 411-413 North Center Street, Bloomington, Ill. Maryland and Virginia Milk Producers' Association, 1731 Eye Street NW., Washington, D. C. Maryland State Dairymen's Association, 810 Fidelity Building, Baltimore, Md. Miami Valley Cooperative Milk Producers' Association, 136-138 West Maple Street, Dayton, Ohio. Michigan Milk Producers' Association, 406 Stephenson Building, Detroit, Mich. Mid-West Producers' Creameries, Inc., 907 Lemcke Building, Indianapolis, Ind. Milk Producers' Association of San Diego County, 354 Eleventh Avenue, San Diego, Calif. Milk Producers' Association of Summit County and Vicinity, 145 Beaver Street, Akron, Ohio. Milwaukee Cooperative Milk Producers, 1633 West Thirteenth Street. Milwaukee, Wis. National Cheese Producers' Federation, Plymouth, Wis. Nebraska-Iowa Non-Stock Cooperative Milk Association, 2410 Dodge Street, Omaha, Nebr. New England Milk Producers' Association, 51 Cornhill, Boston, Mass. Northwestern (Ohio) Cooperative Sales Co., 22211⁄2 Detroit Avenue, Toledo, Ohio. O. K. Cooperative Milk Association, Oklahoma City, Okla. Peoria Milk Producers, Inc., 208-210 East State Street, Peoria, III. Pure Milk Producers' Association, 853 Live Stock Exchange Building, Kansas City, Mo. Pure Milk Products Cooperative, 110 East Main Street, Madison, Wis. Richmond Cooperative Milk Producers' Association, 605 East Canal Street. Richmond, Va. St. Joseph, Mo., Milk Producers' Association, 403 Ballinger Building, St. Joseph, Mo. Sanitary Milk Producers, Room 609, Chamber of Commerce Building, 511 Locust Street, St. Louis, Mo. Scioto Valley Cooperative Milk Producers' Association, 303 Grand Theater Building, Columbus, Ohio. Shelby County Milk Producers' Association, 1039 South Bellevue, Memphis, Tenn. South Texas Producers Association, 912 Bankers Mortgage Building, Houston, Tex. Stark County Milk Producers' Association, Canton, Ohio. Tulsa Milk Producers' Cooperative Association, 1120 North Boston Street, Twin City Milk Producers' Association, 2402 University Avenue, St. Paul, Minn. Twin Ports Cooperative Dairy Association, 6128 Tower Avenue, Superior, Wis. United Dairymen's Association, 635 Elliott Avenue, West Seattle, Wash. Valley of Virginia Cooperative Milk Producers' Association, Harrisonburg, Va. |