NFO-83 (AV10489) US Farm Report: What’s Happening to Our Nations Wealth?

NFO-83 (AV10489) US Farm Report: What’s Happening to Our Nations Wealth?


[music] welcome to us form report presented by
members of the National Farmers organization in a fall presents what’s
happening to our nation’s well with today’s special guests
W.W. Butch Swaim NFO national promotional director and Arnold Paulson rural
business man from Granite Falls Minnesota who heads Minnesota business
and industrial promotional agency family farm agriculture the grassroots of
America my name is Butch Swaim promotion director for the national farmers
organization it carries out the educational program work with the
universities of our nation to find out what’s going on departments of
agriculture and departments of government and I have with me today
Arnold Paulson Granite Falls businessman and president of the business and
promotional investment agency of Minnesota Arnold and I just got back
from a trip to Washington short time ago and we were down there to see what was
happening we were having meeting with economists top economists of the nation
determined what’s happening what’s bringing it about and what we can do to
stop this erosion in rural America as well as the eventual destruction of our
way of life in America Arnold why don’t you give them a brief rundown on what’s
really wrong what brought this thing about and what you see the solution is
well thank you Butch we spent a very interesting week in Washington DC
visiting with many of the congressmen and Senators and we also had the
privilege of meeting one of the nation’s most charming personalities Esther
Peterson the assistant secretary of labor and we also met with one of the
most respected and leading nations economists and as we were interviewing
him and discussing our national national economic problem
he said that the only way we’re going to solve the problems of rural America and
to correct our nation’s economy is if the people in rural America will create
a loud enough noise so that they can hear it all the way to Washington
because he has tried desperately for too long a time to try and create an
awareness in the hearts and the minds of the people down there that there’s
something wrong and as we visited with many of the
congressmen and Senators and the key people both Butch and I became aware of
the same situation now they’re not all blinded but I would say that the
majority of the congressmen and Senators that we met with actually feel that
there’s nothing wrong with our economy now their basic reasoning is this they
are thoroughly convinced that the John Maynard Keynes theory of economics or as
we call it the new economics is almost infallible that the economists now can
take all of the wrinkles out of the economy at will and as we met with
several of the aides of the various congressmen and Senators they kept
referring to the economic indicator of the United States government and they
refer to the various statistics in here and they’d say man you don’t know what
you’re talking about we’ll turn to the pages and showing where we have 559
billion dollars in deposits in our private and public bank- in our private
and commercial banks they also point their fingers to the fantastic increase
in the national income of the country and say that labor is earning more money
than ever before in history and then they also point their finger to the
fantastic increase their growth of our gross national product and this they
rely on as all of the facts that they need that our economy is stable now I
would like to challenge some of the thinking of the new economics or the
Keynes theory of economics which believes that they can take the ring
goes out of our economy at will and that there is nothing wrong with this
fantastic spread credit spending that is keeping our economy going because they
say the wealth is still here it doesn’t disappear and I think it would be very
interesting to draw a diagram on the blackboard and show you people exactly
what is happening to the wealth of this country it is true the wealth does not
disappear it’s true that all 559 billion dollars is still within our national
economy it is true that our national income is increasing and it’s true that
we’re purchasing more goods and services today than ever before in history but
the fact remains that the purchasing of these goods and services is increasing
each year with additional credit buying I would say that approximately 50% of
all of the goods and services that will be bought by the entire national economy
this year will be purchased with credit now I would like to move over to the
blackboard and and draw a very simple illustration showing you people exactly
what happens as interest rates increase as taxes increase and as increased
credit buying is stepped up the wealth is still here but let’s see what happens
to it if I may I’m going to draw a line across the board such as this this line
will represent the hundred and ninety five million American people this is the
population a hundred and ninety five people within the confines of the United
States hundred 195 million 195 million people right
thank you but this also will represent the five hundred and fifty-nine billion dollars that they are telling us about
that the wealth does not disappear it’s still here it’s within the confines of
our economy that we shouldn’t be- we shouldn’t
become alarmed about the the fantastic increase in spent and credit spending
well now as we draw a line across the entire economy this represents all of
the people and all of the wealth when we have a well balanced well distributed
supply of money within our national economy but here is what happens every
time the consumers have to pay more money for interest or the taxes go up
and take a bigger bite out of the purchasing power of the people or as the
population or the consumers have to resort to more credit spending to buy
the goods and services that are necessary to live as the economy
inflates it’s true that the wealth is still here it doesn’t disappear but you
will notice now that the wealth is owned and controlled by a smaller group or
percentage of the people and this segment of our economy is living in
poverty as the economy continues to inflate or grow the wealth is still here
but within a smaller segment or portion of our national economy and this is
exactly what is happening today the wealth is still here but more and more
people do not have the earned income necessary to buy the goods and services
that they need to live and have to resort to increase credit until today
our economy pattern looks something like this and yet the wealth is all here all
559 billion dollars what I am trying to point out is that the control of the
wealth of this country is continually being collected into the hands of fewer
and fewer people as the masses have to resort to more and more credit
now this economy of ours can grow and can prosper
just as long as we have enough collateral for the masses of people to
extend their credit loans to keep the economy going but you can notice as this
trend continues pretty soon the fine line will get down
to the point where just a handful of people own and control all of the wealth
of this nation in the situation that we find us in that we find ourselves in
today is that the country is running out of money the country is running out of
credit the country is running out of buying power because all of the money
and all of the wealth is being collected and accumulated into the hands of the
few and the trouble today is that the masses no longer have the
collateral and the banks no longer have the credit to extend to keep the
purchasing power of this economy moving and this is what we mean when we say
that we are fast approaching the point of no return where the buying power
of the country will collapse and where the interest factor will become so
great that all of labor all of the consumers will not have enough dollars
left in their paycheck to meet the installment payments on all of the
mortgages and the installment payments that they have to make and still retain
enough dollars left from their paychecks to buy the goods and services necessary
to live and their credit has run out and as a result the economy will collapse
but now the economists tell us that they have built-in measures that this will
not happen again that we will not have another depression like we had in 1929
because we are smarter and we are wiser well some of the measures that they have
they tell us that we now have FDIC insurance on all of the bank deposits
guaranteeing your bank deposits up to $10,000 this is true but we have 559
billion dollars in bank deposits but we have less than seven billion dollars of
insurance to back up the deposits so if we should have a repetition of 1929 it
means that they could only pay off approximately one cent on the dollar
this how sound in solving the FDIC insurance
program would be in the event we should have another depression now they also
have other built-in measures such as unemployment compensation and insurance
and that they also have many WPA programs in the boiler house ready to go
to work the moment the economy begins to slack but let’s analyze the soundness of
our national economy we have been led to believe as we read the magazines and the
newspapers now for the last six years that we are living in the greatest boom
prosperity that this nation has ever known but as we analyze it we will note
that even the largest metropolitan areas in this country can’t afford to clear
their own slum areas they have to have urban renewal many of our large cities
such as New York City is becoming the slum of America in addition to urban
renewal we have to have manpower training and job opportunity
programs which is a substitution of the CCC camps that we had in the 30s the
economy is so booming that we must have anti-poverty programs because 36 million
American people don’t have the minimal requirements of food shelter clothing or
medical care does this sound like boom and prosperity to you and one of the
leading economists in a survey recently made available to the public shows that
about 44 percent of the nation’s population are just above the borderline
of poverty and in addition to this the economy is booming to the point that we
can’t even pay our own medical bills we must have Medicare and that we can’t
even afford to educate our own children we must have federal aid to
education we already have all of these built-in measures during the greatest
boom this country has ever had and now they tell us that this 1929 cannot
happen again because we have built-in safeguards that we have government
programs that can go into action more WPA and other welfare maneuvers well I’d
like to ask the American people to add this thing up what will the economy be
like if we have to inject more measures to keep this thing moving now one of the
nation’s leading magazines and I’d like to point this out to you people because
I read it every week every issue it’s US News and World Report a very fine
magazine very educational and I’d like to encourage you people to subscribe to
this publication as well as another magazine Newsweek which gives you both
sides of the coin now the headlines in the May 16th issue
is “another ’29 insight pro and con” now why would the newspapers and the
magazines be writing about the threat of another depression if there wasn’t
something in the wind yes it is true the wealth is still here
but the question is who controls it how much of it belongs to the consuming
public how great is your debt and this year 1966 I wish you take your pencil
and paper and jot some of these figures down this year 1966 the first 37 cents
out of every dollar of national income will go for taxes federal state and
local the next 20 cents out of every dollar of national income will go for
interest on the public and private debt another 20 cents is already earmarked as
payment on the principle of the debt which means that the first 77 cents out
of every dollar of earned income nationwide is gone before you get your
paycheck now some of you people may not be paying any interest or installment
loans that means that the neighbor living next to you then is paying your
share and his share because this is the average for the whole United States
which leaves only 23 cents out of every earned dollar in the entire national
economy available to spend to buy food clothing shelter and medical care and is
that any wonder that the American people have had the resort to credit buying to
buy the goods and services necessary for living and as the result of the
fantastic increase in credit spending we have created a fantastic
debt fueled economy and the gap is getting narrower and narrow narrower the wealth
is being owned by more and more people and the masses are becoming poorer and
poorer as a result today 1% of the banks in this country control 50% of all of
the wealth in the entire nation that’s the banking assets the banking wealth
the banking assets right thank you Butch for correcting me the other 99% of the
bank’s control the other 50% I think I have explained by this diagram how this
is coming about and if this insane program is not stopped very soon this
can very easily end up 1/2 percent 1 4 percent and these figures can go to 80
percent and a 90% but it can’t get that far ladies and gentlemen because our
economy won’t collapse now this is what’s happening when they tell us that
the wealth is still here it cannot disappear it still belongs to someone
I hope Butch that I have painted this picture clearly enough so that the
audience can understand what we have been talking about let’s explain for
just one moment the wealth is still here but supposing you’re a farmer out here
and you’re paying on a farm we’re supposing you’re a working man and
you’re paying on a house in town the wealth is still here this sounds fine
but when you get laid off in your job or your farm prices are so low that you can
no longer make the payments on that farm or that house in town and they foreclose
take it away wealth is still here all right and using
the theory that’s being taught down in Washington you’re not supposed to
complain because it’s still here you’re not supposed to feel bad because they
took it away from you and let somebody else own it now let’s talk just for a
minute what’s brought this about what caused this to get in such situation it
was lack of earned income on the part of everyone in their economy and this
started out that right out at the grassroots level on the farmer level
I have here and I wish the camera would come in close a little diagram a little
cartoon so to speak it will show you what brought this about and this has
been going on since the harsh and buggy days but the farmers have been going to
town one of the time we’re sending their produce to town and saying what do you
give me and in later years with more competition on the top end they don’t
even go anymore the truck hauls it to town what the mule explains it very well
Jack says my boss says he don’t have to go along to town market because I can
get just the same price he can but to correct this situation the farmers are
going to have to organize and get together and go to town and bunches and
say not say what will you give me but say this is ours it cost so much to
produce we must get this much in order to stay in business and earn enough earn
national income to keep our economy going red I know you’ve got another
point there you want to bring out what are you’re holding there in your hands
well Butch I have with me a Farm Tempo magazine which I consider to be one of
the finest farm publications in America today anyone that’s interested in
subscribing to this publication can write to Farm Tempo magazine Marshall
Minnesota that’s all you need Farm Tempo Marshall Minnesota the
subscription rate is two dollars a year and I encourage businessmen and everyone
living in rural America to subscribe subscribe to this fantastic publication
but what’s one thing I’d like to refer to is an article on the inside cover of
the last issue which is referring to a statement that says here is why farm
programs get a bad name and here is why there’s so much miss much
misunderstanding in agriculture in the rural areas is because it’s hard for
many of the rural people to believe that there is actually a depression on the
American farm and i’d like to read this very briefly because it’s quite short
this article says that in Holt County Nebraska farmers last year drew
something over 1 million dollars under the federal farm program there was a
total of 1356 farms of agriculture units in Holt County in 1965 according to the
county ASC office six large farmers in Holt County received almost 50% of the
total paid under the farm program these six farmers amounted to less than one
half of one percent of the total number of farmers in the county but they got
and listen to this very clearly they got four hundred and sixty one thousand
five hundred and forty nine dollars and sixty cents in 1965
and Butch I believe this is one of the reasons why so many people
are fighting the program of the national farmers organization it’s because not
because they don’t believe that the farmers must correct their own problem
at the marketplace but they are blinded by greed because of the fantastic
payments that some of these people are getting from the federal government and
rather than surrender these payments in lieu of a fair and honest price at the
market price because of their greed they would just as soon see all of rural
America go down the drain as long as they themselves are doing all right what
do you think well they think that it won’t be so bad let the other fella go
and then they’ll have all the pie but it won’t work out this way folks
because when more and more of those go and the price continues to stay low
there won’t be enough earned income to keep our total economy going and this is
the fallacy in the whole thing that they need to get together such as we are
doing here with other farm groups to get together get the farmers educated that
they bargain together and sell together for a fair price because each dollar
that American agriculture is shortchanged in the marketplace creates
a shortage of $7 of earned income international economy and this is the
thing that these government programs with just a few in the hands of a few
getting all the payments or the bulk of the payments
this is going to ruin our entire system and I think Arnold but you know how
we’re working together with the National Grange and as the caption says they’re on
the magazine the nation’s two most respected farm organizations and I think
this was very well put because the Grange has been respected for years
it’s celebrating its hundredth anniversary this year because they
started back in the days when there was no farm organizations as such at that
time and they’ve come a long ways they’ve been on the side of rural
communities and rural people all the way through and then the national farmers
organization the youngest of our farm organizations has come along with the
collective bargaining program that will solve this problem The Grange recognizes
that just because they’re a hundred years old is no sign that they’re going
to stand the way in the most dynamic farm organization that there is today
they realize that we have the bargaining talent the bargaining personnel and the
ability and they’re recommending that we do the bargaining for the members in
their group and this has been a very fine cooperation we’ve cooperated in
legislation and other groups and what do you think this will lead to Arnold well
Butch I hope everyone in this listening audience or viewing audience realizes
that I’m not a farmer I’m a businessman but I had the opportunity to attend a
joint meeting of the national farmers organization in the grain that Defiance
Ohio a month or so ago and I thought that this was possibly the healthiest
sign that I’ve seen in agriculture because here you do have two of the
nation’s most respected farm organization joining hands and working
together for a common cause both recognizing together that this problem
must be solved by the farmers through the joint cooperation and effort of
everyone that wants to save our rural way of life and I think which that this
is the healthiest thing that’s happened and if these two organizations can
continue to work together harmoniously I think that this will be the answer in
solving the problems in rural America and will help save save
this way of life that we cherish the Grange’s plus is the oldest farm
organization in America they are very highly respected and I think it’s a
credit to the national farmers organization which that they’re willing
to join hands and pitch in and help win this battle that must be won there’s
more and more signs Arnold other groups are beginning to show interest and
beginning to realize that we have the only program that will save rural
America as such the business people are beginning to back us up in
ever-increasing numbers the rural newspapers realize if the family farm
structure of agriculture disappears that they will no longer be needed out here
in the rural towns USA and more and more church groups are beginning to catch on
and see the light too Arnold well the reason for this Butch is I agree the
tide has started to turn but the reason for this Butch is more and more people
are thinking and more and more people are are reading and studying and digging
and looking for facts rather than listening to the gossip and the rumors
that are floating around the country that’s being spread by people who don’t
want the farmers to get a fair price and I think that the signs are healthy as
you said that more businessmen more ministers and more of the educators in
rural America are beginning to realize that collective bargaining for
agriculture is the answer in the solution that we’re going to save
agriculture in our rural community I think this is absolutely right and every
day now we get calls from interested people position of leadership throughout
the nation wanting more information on our n fo collective bargaining program
that will put the farmers in position to put a price on his production not only
to protect the farming industry but to protect all of rural America because
folks rural America has been living on less than a 50-cent dollar in comparison
to the rest of the nation less than half what they’re entitled to receive and
this has brought about the underpayment to the agriculture at the marketplace
this situation when corrected will double our dollar
flow through rural America will double the job opportunities in rural America
will make profit clear along the line so that no longer will we need this debt
fueled economy this immense immense spread of borrowed money and this is what
ruined us in 1929 this immense borrowed money and speculation and if
the trend continues the way it’s been going I’ve got a little article here out
of a magazine that’s in the Sunday issue it’s about one third of the newspapers
of the country and it says it is just a question of time if this trend continues
until a few corporations own all the productive farms in America we made that
statement which in that article who made this statement I’m not sure but it’s
talking about higher up and the article about President Johnson but nevertheless
folks we’re calling on the nation’s farmers and all over all America to join
this effort of collective bargaining for the American farmer through the National
Farmers Organization thank you for listening [music] the US farm report was brought to you by
members of the national farmers organization the NFO with interests and
purposes of maintaining America’s agricultural welfare which benefits the
national economy is brought to you what’s happening to our nation’s well
with W.W. Bush Swaim NFO national promotional director and Arnold Paulson
rural business man from Granite Falls Minnesota for more information on the
NFO attend meetings in your area or contact the national farmers
organization Corning, Iowa family farm agriculture the grass roots of America

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