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Winder, Georgia
December 27, 1938

Mr. Marriener S., Ecoles, Chairman
Federal Reserve Board
Washington, D. C.

Dear £ir:
I am, unfortunately, a farmer owning ana operating a 3,000 acre
farm and losing money every year.
I note a news item in the Atlanta Constitution where you take
issue with Senator Byrd, of Virginia, in reference to millions
of able bodied men working on relief and making no effort to
earn an independent living. I am sorry to tell you that so far
as the cotton states are concerned the Senator is correct.
The people referred to were once independent minded citizens,
far from accepting charity, but the time came when a share cropper
on the farm could earn only $150.00 a year, which is five or six
cents per hour wage for their work. The government put on the
C. W. A. at 40 cents per hour, then later the W. P. A. at 30
cents per hour. These people accepted the government jobs
reluctantly and wages on the farm remained at the very low scale
of five or six cents per hour. Having once humbled themselves
to take W. P. A. work they now will not pass up a job at 30 cents
per hour to go back to the farm job at six cents per hour.
These people will be a burden on the government so long as farm
wages are no more than five or six cents per hour.
The, government is responsible for the condition of the country.
In 1929 farmers were reasonably prosperous. Not over prosperous
but were making a comfortable living. They were selling cotton
at, or around, parity prices - only what the farmers were due.
The Hoover Administration began to "deflate* and that deflation
caused all the trouble - bank failures, business bankruptcies,
farmers commiting suicide, etc.
In 1933 our good president undertook to remedy the wrongs that
the preceding administration had inflicted upon the farmers by the
deflation of 1929 ano was making some progress. Farm commodity
prices were approachina^p^ttv,. It really looked like cotton
would sell for 16 centa^Sracn^w?^about parity price for cotton
but for some reason unexplained the present administration became
suddenly alarmed at signs of too much prosperity and made the
same blunder that was made in the fall of 1929. If the present
 administration had only kept their hands off of the "deflation

#2 - Mr* Marriener S. Ecoles, Chairman

keyw we would have gone on to parity prices for farm
formers would be*making money and expanding to where
offer these W. P. A. fellows a crop on shares, which
tne laborer a fair living. The YJ. P. A. crowd would
less while as it is the number gets larger.

they could
would earn
be growing

Much has been said about the cause of low prices and surplus
stocks of cotton, wheat, etc., and, as usual, it is all caused
by over production. The farmers are called "fools" for making
so many bales of cotton. This is all wrong and very unfair to
the farmer. The main cause of low prices of cotton now is the
same as 1950, 1951 and 1952. The deflation that started in
April, 1957 caused tne trouble and farmers will suffer and the
W. P. A. list will grow larger until the error of April, 1957 is
I wish the people who have the power to "inflate" and "deflate"
were compelled to ignore security values and required to observe
farm commodity prices only, then the farmer would get a square
deal. Inflate or reflate until cotton, wheat and other farm
commodities sell at parity. Let the farm owners make some
progress so they are able to reach out and call back the
laborers who once were making a living on the farm
are ready to go back to the farm fFhen, and not unt
cropper can earn a fair living working a crop on shares.
The short route to prosperity, and the only way to a reasonable
adjustment of the present low earning scale of farmers, is to
"reflate" - give back that which was wrongfully taken away from
uu in April, 1957.
Sincerely yours,

G. W. Woodruff