Palmer, Alaska
Dorothy M. Boll-Editor
~uMished cnee a reek at P- Iraer, Alaska, for the !J tonuska Valley Fr.rr-.ers' Cooperating
Accoci itioji for the purpose of giving news 'of thS .A-soc iations work, problems end
Accomplishments.
Subscription Rate $1,75 per year $1.C0 for six months
10^ a copy
FARM COOPERATIVES and FREE ENTERPRISE
UROUG ^SSUIIPTICIT '
M r.u factinrers have asked for tariff protection, commercial banks have been given • < .
special • 6onsideration, the railroads the merchant marine, the airways and Dimerous
other types of businesses have had government loans* However, because the Federal
government and many states have given open encouragement to cooperative business ac
tivities through such devices as legislation, education, and credit facilities, jnany
persons now erroneously associate cooperatives with government.
Upon close examination of the record we find that government and others, including
prominent business leaders, have long encouraged farmer cooperatives, because they
believe cooperatives to be important as useful "tools” in the improvement of our
national welfare.
The organization and operation of cooperatives are not dependent upon governmental
aid, since cooweratives obtain most of their credit in the world markets. However,
the government offers credit facilities to agriculture just as it does to other busi
nesses. Tbs-a h the facilities of the F v’ Credit U linistration, and other govern
mental agencies, credit is available to farmer cooperatives, and to farmers. The
terms are very strict, all transactions being on a so'nd financial basis. The Farm
Credit Idrinstration has provided some credit, but more important, it has served as
awyardstick” ar to what loans should cost.
FlRI’ERS ”0UUD T.JX CVFR
Th:: FC-i ].• s .lor/ directed its efforts toward complete farmer ownership of its spon
sored credit facilities. Tbrre is how renewed effort in this direction in practically
all divisions of the F rr. Credit setup. Oddly chp-.-Ji, some business people are opposed
to government gettingbut of the credit business which'vould result in farmers owning
their own credit establishment.
It rill be remembered-that not many ye-rs ago farmers in many states were forced to
pay 8,. 10. and 12 per cent for money which was callable in two to three years. This
situation has now largely been corrected, and the FC-* deserves a great deal of credit
for it.
wOJT'-TKi; -?ARM» DEP RTlfNT
Dr. Butler sgys that in essence, a farmer cooperative is anexample of group action,
for individual gain. In the yards of Judge Lyman S; Hulbert, ’V. business cooperative
Association nay be defined as an organization Of capitalists functioning on a capital
istic basis for making or saving monOy on a patronage basis for its members.w More
simply stated—a cooperative is an ”off-the-fam" department of the farm operation.
The important attributes afa farmer cooperative as listed by Dr. Butler are:
1. A cooperative provides farmers with a yardstick to measure the cost of supplies
and services.
2. A cooperative often gives farmers a sense of security in having a sure and depend
able place through which to market produce, or purchase quality supplies.
3. Cooperatives often provide needed services not provided by okher business because
of the risk. Examples include potato spray rings, the manufacture of fruit boxes.lime
spreading service, and certain innovations important to farmers and the general public,
4. Cooperatives have given farmers a means through ^-hich they are able to express
themselves and put 'their desires and thoughts into action.
5. Parmer cooperatives serve to increase the dignity of farmers. The spiritual uplift
end pride which have come to farmers as a result of the success of their cooperative
effort is tremendous. Today, f. rmers are able to associate with bankers, lake's. ^
merchants, and others, rith self-respect and without humiliation. This has not always
been the case.
Interestingly enough, many businessmen other than farmers use the cooperative method
of doing business, fell-known examples Are: the American Railway Ex-ress Company;
the associated gress-, owned by approximately 3,000 newspapers; the wholesale hardware
associations; wholesale drug suppliers; -wholesale grocery suppliers; mutual insurance
organizations end mutual banks. , • ■ ‘ ' '
-Cont. on pp. 3 , .