Speech

m m m m m m m m m m m m s m mm .Jl-., imiOHA& DEFENSE ADVISORY COMMISSION . -,, '' \ NOT TO BE RELEASED B'EITORE ' Y %v - , . 9:30 a.m., November 13, I9H0 Address by Chester C. Davis, Commissioner in charge of the Agricultural Division of the National Defense Advisory Commission, delivered "before the Eifty-Eourth Annual Convention of the Asso- ciation of Land-Grant Colleges and Universities, at the Grand Ballroom of the Drake Hotel, Chicago, Illinois, at 9:30 a*El,, Wednesday, November 13, 19^0 AGRI CULTURE AED XB1U1&M Very few people in the United States, I think, realize that the economic, social and political world of the future in which we must of neces- sity operate is going to he totally unlike the world of the past to which we have more or less adjusted ourselves. In spite of all our talk of "total defense" and "complete industrial mobilization," our habits of thought for the most part carry us comfortably along the old grooves, with our outlook and expectations essentially un- changed. In these sober statements I do not imply that any sharp line divides some who clearly understand from others who do not understand the fundamental alterations in our own behavior which those world changes will bring to pass. All of us are in more or less the same state of mind - the facts arc spread for us to see, but their implications are so startling, so incredible, that we automatically tend to dodge them. Some of us may even take refuge in the thought that our colossal ex- penditures for armaments plus England's purchases from us moan an unprecedent- ed rise in business activity, with consequent expansion of profits, indus- trial employment and payrolls, and a war market at better prices for farm product So I say to you that after a generation wo have not liquidated the disaster of the last World War, and that we cannot emerge comfortably from this one* ! * M -2- m 2U6 On one point I "believe we ar* all reasonably clear, although it involves a sharp departure from old opinion. We have generally "be- lieved that any nation that minded its own business would "be left alone to work out its own destiny. The early warnings from China and Ethiopia did not sink in. Only a small minority took notice when three powerful dictators made the "body of Spain a practice ground for undeclared mechanized war. The annexation of Austria, the partition of Czechoslovakia, and even the seizure and division of Poland were colored "by memory of the rigidities of the Treaty of Versailles. But when in turn the peaceful Scandinavian democracies, then Holland and Belgium were violated, and when Prance fell, the pattern became perfectly clear. No nation is safe if it possesses resources which the dictators covet unless it has organized those resources for prompt and effective military action; and no nation that stands between the dictators and their dreams of world dominion can sleep in security unless its effective military strength is respected. Americans have certain ideals for this hemisphere to defend and for which they will fight. These ideals directly clash with the am- bitions of the dictator states of Europe which extend to Latin America. With that conflict clearly before us we cannot afford to drift on, anaes- thetized by hopes for an early English victory in a war she was unpre- pared to fight, or expectations that internal dissolution or ouarrels among"the Axis partners will diminish their threat to the rest of the world. ~ 3 - m 2U6 The rules of the world aro "being rewritten, "by powerful predatory nations which respect nothing hut force, On that point I am convinced that the United States no longer has illusions, That is why 130 million people have united hack of their government's armament plans. That is why Congress voted with overwhelming public approval the first peacetime conscription for military training. We have the material resources, the manpower, the wealth and the genius to make ourselves impregnable in this hemisphere^ But let us not delude our- selves in the belief that we can accomplish that end and at the same time pre- serve untouched for classes and for individuals all of the privileges and the prejudices that aro imbedded in American democracy. If prejudices and privileges are disregarded, it can be demonstrated by logic and mathematics that .»nis nation can carry out and extend its armament program without important reduction in the volume of production for civilian use - without spiralling prices or depressing the standard of living. In other words, it is possible "to have guns and butter both," But it will not be possible to have full production for both defense and standard of living if the important elements in our economy, industrial management and capital, labor, and agriculture, successfully resist any modification of their traditional attitudes. If there is likelihood that more capacity will be needed to produce essential industrial raw materials to meet both defense and normal requirements, then additional plant capacity must be provided regardless of the quite under- standable apprehension of industrial management over the peacetime use of such facilities. The English steel industry and the English machine tool industry were unwilling to sacrifice profits and security by increasing capacity and taking advantage of new production methods. This experience should be all the warning we need 011 that point. 'xERO'i copy; - 1). - PR 2U6 Before skilled Labor "bottlenecks seriously cramp production in any line, untrained or serai-trained workers must "become skilled, not- withstanding the fact that at some future time all these trained work- men may not "be required in their particular'lines. Farmers will have their own and very serious adjustments to make. Defense needs may require' that domestic; production "be supplemented "by increased imports, as we see happening in the case of some grades of wool. Cooperation with Latin America may require farmers to re-examine most critically some of their traditional patterns and prejudices^ There are only a few examples, far from complete, of the areas in which national and group patterns will have to change if the defense effort is to meet the challenge we have taken up. We use the words "total defense" and "total mobilization" rather carelessly, I believe. On the whole, we in America haven't even stopped to think what they really mean. The British people are getting a clear view of it. A closn English observer recently pointed out that before there can be any hope of Brit- ish victory on air or sea or land, England must overtake her enemy's five- year head start on the industrial and economic front. To that end in England today complete mobilization means throwing into the battle all her potential as well as actual manufacturing, labor and financial resources, with a ruthless disregard of vested interests, of orthodox finance, of the peacetime profit motives and, while the crisis continues, of living stan- dards and of the normal production methods wherever these obstruct the primary objective of winning the v/ar. I 1—' m mm m m m* • ii - 5 ~ PR 24-6 In attempting to set in perspective the seriousness of the task this nation has undertaken I do not for one moment minimize the ac- t conplishmonts that have "been made. The civilian "body to e:qpeditc armament, the National Defense Advisory Commission, was first called together "by the President on Memorial Kay, Since then, up to November 9, out of funds so promptly made available by Congress, a total of $9,#65,108,000 of contracts had been cleared by the Defense Commission for equipment and new production facilities for the Army and Navy. Contracts actually awarded by the Army and Navy through November 5 amount to $8,236,300,000, That means that the responsibility for producing under those contracts has been passed over to Anorican industry and American labor* The full rate of production cannot be achieved until the funda- mental but unspectacular job of creating new factories and additional machines has been accomplished. That takes time. Again I turn to England for an example. The first move for government-financed aircraft factories in England reached the construction stage early in 193c* The engine factories in this group began producing in July 1937? the first of the air- plane plants in January 1938. The group as a whole did not reach full pro- duction until miclr-1933, two years after the initial construction was launched, I do not mean to suggest that defense production in the United States is at a standstill pending the completion of new factories. The -out- put of existing and enlarged plants is steadily accelerating. Por example,- airplane production has reached a current rate of approximately 10,000 planes a year. It is scheduled to reach the 15,000 plane rate early next year. - 6 ~ ?2 2^,000 rate by July 1, and to attain an output of 3,000 pianos a month "by early 19^2 Light tanks arc coning off the line at the rate a of over 100 a month, and the first real nass-production tank factory in the world is under construction. This is the "beginning. Tine does not perr.it further details. I must turn to questions in our own immediate field, that is, the impact of the war abroad, and the armament program at home, on the farmers and the institutions that servo then. The Land Grant Colleges have a peculiar responsibility. The day which limited their work with agriculture to demonstrating and teaching efficiency in production has long since gone - if it over existed. Today the activities that radiate from them roach out to every farm and nearly every rural home. Because of their intimate relationship with the United States Department of Agriculture they share the task of assisting farmers in the adjustments demanded "by changed world conditions. From their own standpoint, the farmers have much to do. From the national viewpoint their job had already been pretty much done. They have produced in abundance what our citizens normally require of them. Through the simple process of having continued to produce in spite of hard times, they find themselves at the height of defense planning with warehouses, bins and elevators filled. So far as food and fiber are concerned, agri- culture has already delivered its quota toward national defense and national safety. V/e are so well fortified with agricultural supplies that, in addi- tion to taking care of all our own needs,it has been estimated that we could - 7 ~ FH 2U6 safely soil to other countries as much as 150 million "bushels of wheat, U00 million "bushels of corn, 100 million bushels of barley, -350 million pounds of pork, 500 million pounds of lard, 250 million pounds of other edible fats and large quantities of fresh, dried and canned fruits and vegetables, We have extra millions of bales of cotton and pounds of tobacco presently unrequired. These surpluses are largely carried over from previous crop years. In addition to our already bountiful supplies, present indications are that aggregate crop production for 19^0 is likely to "be the second largest on record. In this time of international stress, it is well that our store- houses are full. I believe every patriotic farmer in America will agree witl that conclusion even though these large surpluses make it more difficult for farmers to get the prices they should receive. Carriers know their prices are too low, but they also know that ir spite of the ultra-modern weapons of war, .an army still must have food and fiber. To feed and clothe that army and the nation behind it is the farmers1 job* That's their contribution to national defense. On that score, the farmers and the nation are well prepared. But an adequate agricultural supply as important as that is does not fully meet the challenge. Agriculture in the years ahead faces two tough assignments. It must continue to maintain sufficient supplies of food and fiher to meet the nationTs needs, regardless of what develops. And it must adjust itself to the effect of war abroad and of the industrial speed-up at home. If we are to make these adjustments with the least possible harm to agriculture, it is necessary that farmers know what is going on and what is XERO '. ; XERO COPY' )COPY - g ~ FR 2^6 happening to their economy. This is a jot in which every educational group in America can assist to come degree "but the Department' of Ag- riculture, the Land Grant Colleges, the Extension Service and other agricultural agencies will take the load. I doubt if farmers generally understand what is happening to American agriculture. 0:i the adverse side, it will take time for them to gras fully what the loss of the continental European market and the curtail- ment of ezqoorts to the United Kingdom really mean in terms of individual farms. On the favorable side, it will also take time for them to con- solidate the gains that are possible as a result of increased payrolls and wider industrial employment in the defense effort. Most of us will agree, I think, that had it not teen for government loans and purchases and other programs administered "by the Department of Agriculture, the losses "because of the war would he greater than the gains resulting from the huge armament expenditures. It is going to take the combined efforts of all agricultural groups, working in complete harmony, to help farmers get the facts and "build tj morale needed to make the adjustments which lie ahead. Nothing is going to head off these adjustments,, We are going to find ourselves face to face with them, regardless of what we may do. If we are informed and prepared to meet them, we can at least lessen their disagreeable factors, even if we can not overcome them. There is a definite relation "between the location of new defense industries and the distribution of supply orders, and agriculture. The Defense Commission shares this responsibility with the War and Navy Depart- •XERO •• 'XERO COPY; COPY - 9 ~ PP- 2^6 merits. Wherever the technical requirements for a plant permit reason- able freedom of choice, new factories should be located away from the areas of present industrial concentration, and in areas where there are surpluses of labor to he drawn upon. The unemployed, and the unsatis- factorily employed on the farms, should he counted' as part of this labor reservoir just the eame as those whose names are on the roll of unem- ployed in the cities and towns. Under present and prospective conditions, there are too many people trying to grow cotton and tobacco and wheat. Many of them cannot produce a decent standard of living at it. The real job is to provide new sources of income for them. Industrial employment near their homes would help. It will he well if farm people who do get johs in new plants near their homes continue to live on the farm. That extra income is needed there; the immediate housing problem in the rural towns where new plants are being located will be alleviated if workmen"live at home and drive to work; and there will be fewer stranded people in the communities when the new plants shut down if the laborers have stuck by and built up their farms. However, the establishment of defense activities in rural areas, particularly those reouiring large acreages such as munitions plants or training centers is creating new and difficult problems for the people who have to move from the land chosen. Many of these people will be able to re-locate themselves without guidance or aid. Others will need some kind of assistance. A number of problems have arisen in connection with the actual acquisition of the land. After a particular site has been chosen, arrange- - 10 - PH 2U6 ments for the purchase of the land are made by the Seal Estate Division of the Quartermaster Corps of the War Department, In the case of factory sites the land needs to be acquired quickly, in many cases within 30 to 60 days, farmers have not always been told and do not understand the rpi^v.. why that particular location was chosen; thev have not under- stood the reason for the haste nor the basis uced in arriving at values, I know that many of you have been disturbed by these problems. After reviewing their experiences, the interested agencies in the War Department have made some modifications in their procedure, and I am happy to report that in the projects recently started steps have been taken to advise more with the local people as problems are encountered and to inform them more f illy on Questions that have troubled landowners and tenants so much in the first projects. Perhaps I should have talked more about the work of the Agricultural Division of the Defense Commission, and less about the broader problems In general, the Agricultural Division has a small staff of well-trained men who watch end study the unfloding armament program, assisting with problems which agriculture shares, and carrying on the duties that are our part of the work of the Commission as a whole. We work closely and harmoniously with the Department of Agriculture and other government agencies which have responsibility for the action programs. Your own executive committee, and your representative in Washington, have been very helpful. Our work naturally ranges over a wide field of good resources and facilities, foreign trade, rural youth training, phosphate and nitrate supplies, plant location, trouble-shooting where land acauisition is under way, and many more that intertwine agriculture and national defense.' 'XERO'; XERO COPY! (COPY 11 PH 2U6 Before I concludo my remarks, I want to touch on two subjects that relate to your work. Early in my remarks I suggested that farmers ought to re-examine their traditional attitude toward Latin America. Cur hemis- pheric relationships and problems ought to be looked at clearly and courageously by every organized farm group in America. V.re cannot be mili- tary friends and economic enemies with Latin America: at one and the same time. Farmers through their organizations and with the leadership of the educational institutions on which they depend, must study this problem at once and with care. Economic and military dictatorships are sweeping most of the world's area into their systems. If we are to keep the western hemis- phere free from their grasp, the United States and Latin America must learn to work together, to trade together, and to develop together. I hope that the farmer's voice at the council table when plans to that end are being studied will be constructive, not obstructive. I cannot go into it here, but I do want to urge that the Land Grant Colleges give it real study this winter There are enough changes in the agricultural picture to warrant a revier of the research and extension projects of the Land Grant Colleges. The agri- cultural pattern as we have known it in different parts of the country for the-past few years will not be the agricultural pattern of tomorrow. The research work of the Experiment Station^ and the Extension activities must take this new world into account if they are to be most effective in meeting the problem. They must recognise the changed demand ^conditions that confront farmers. There are going to be marked shifts in the type of farming in many agricultural areas. Tho Land Grant Colleges must show and lead the way. - 12 ^ PR 2U6 Nov in conclusion: I have faith that American farmers, hacked and informed "by the same invaluable agencies vhich have made them the world's atest producers will be able to meet the world's challenge of adjustment. In that way, they will add courage, stamina and morale to the abundance which they have already contributed to national defense In that way, they can join moot effectively in maintaining the ideals of a free and democratic America. r.; b VO r> v XERO! XERO copy! ;COPY

Chester C. Davis (1940, November 12). Speech. Speeches, Federal Reserve. https://whenthefedspeaks.com/doc/speech_19401113_davis

@misc{wtfs_speech_19401113_davis,
  author = {Chester C. Davis},
  title = {Speech},
  year = {1940},
  month = {Nov},
  howpublished = {Speeches, Federal Reserve},
  url = {https://whenthefedspeaks.com/doc/speech_19401113_davis},
  note = {Retrieved via When the Fed Speaks corpus}
}