Nixon, Kuhfuss & Scott on wage-price freeze and agricultural policy

0:55You have our experts here at the table.
0:59They have a lot of answers for you.
1:10All right.
1:11We have a moderator here.
1:14I still don't know what to say to you.
1:18We reviewed some of the current situations where we were in the waste price freeze.
1:23I also talked about some of the international events, but I think each other would like to make a brief statement to you.
1:30Good.
1:30And I thought about which order I should start in, and it went well, evidently.
1:36Or, I noticed a condition in this room, as you go according to the date the agency was established.
1:42Oh, I tried on that basis.
1:44I'm going here.
1:45Since we already have the room, call John Scott.
1:48The green is the oldest of the farm workers.
1:50I didn't have a rep on that.
1:51On that, yes.
1:55It was before the... Actually, that's what it is.
1:57Yeah, the Grange was a fraternal group.
2:00It's the beginning of it.
2:03Still, it still is.
2:04It's a guy who attended strange meetings.
2:06We go in, and it's really a lot of fun.
2:09It's very social.
2:10It's fraternal.
2:11It's very close.
2:15All right.
2:16Well, I'll let you know.
2:17Secretary Harding.
2:18So...
2:20workers in government and in agriculture.
2:23We're deeply honored, Mr. President, to be asked to be here today, and we want to compliment you just to the utmost for the action.
2:31We realize that the greatest study in this country has been this inflation that we've had, and it's been increasing, and it lends wages and price to increase in relation to productivity on the destination today.
2:47And we're
2:50We have strong support of the direction of the economic policies that the last few weeks have taken.
2:57We are concerned that, I don't believe we will improve, but we will improve, including the dollar, tax evasions, and closing of the gold window, and the surcharge, too.
3:06We firmly believe that they will have lasting benefits on the economy of this nation.
3:12And needless to say, we were a little bit alarmed when you announced that the freeze would end at the end of 2019, but we also realize that it continues to freeze, as it is, beyond that time.
3:22Quite a whole lot of us.
3:23And so, I'm sure we'll support any program that you continue this leveling off of our economy.
3:37We also greatly appreciate the fact that you exempted drive to freeze
3:42The important feature is that this demonstrates that the administration realizes that farm prices have not contributed to inflation.
3:54And with only our 7-8% increase over the last 20 years compared with the increase of the other segments of our economy.
4:03And we've been able to maintain full production and increase emissions, and the increased emissions we've had has been able to force us to stay in business.
4:13But placing a ceiling on the end price of an agricultural product after a process, I'm sure that I don't need to tell you that puts also a downer pressure on the raw agricultural product, the price of it.
4:27And with this in mind,
4:31I think, Mr. President, that the Grange feels that perhaps in your new program, there might need to be some method of placing some floors under some raw products.
4:43Because there could be increased costs, the process report distributor might, their transportation might fall, and maybe force these raw product prices down, even though they weren't grossed.
5:01Negotiated highway is not supported by increased productivity and plays pressure on prices.
5:07And of course, as far as the wage price, power, inputs and prices proceed unrelated to efficiency or productivity, we feel must be controlled.
5:20We are to have a stabilized economy.
5:23The national range has long held that government and gold should be a minimum, but they are necessary to provide equitable opportunities for all Americans.
5:49So certainly American agriculture cannot continue to function as the only brake on inflation.
5:55We must have help from government and the rest of the business complex to bring about the necessary controls to the economy that will lead to restraint upon waste and price in industries that have allowed their efficiency and productivity to be outstripped by crime.
6:15It would be immediately likely to know the economic effect upon the economy if farmers had to be compensated in proportion to their economic efficiency.
6:23Perhaps it would have forced other industries to increase their own efficiencies and productivity, and justify their increased prices and wages.
6:33Instead of relying upon agriculture,
6:35The supply of the necessary gluten fiber was the decreasing percentage of their expendable income, which they have done in the past.
6:44People have been able to buy more of other products because they've had to spend less for their gluten fiber, because we have been taking less and less of their expendable income.
6:57As I said before, Mr. President, we have appreciated the opportunity to express our views, and we do pledge our support.
7:03I think that what you have done so far has called attention to this real inflationary problem to every citizen in this country, and that you have already placed many dampers on inflation at the psychological level.
7:34...feeling that prices must go up and wages must go up has already been brought up.
7:42And we hope that the new program will continue this stabilization.
7:48The wages...
8:24I mean, you have a car invite, and so you say that you're freezing the products, and when it's still there, you just can't realize what you're trying to do.
8:32On the wage side, of course, I suppose that to a certain extent, your wage patterns would also be somewhat volatile, because you do not have an agriculture that you do in, say, manufacturing, in negotiating contracts and so forth.
8:51What do you hear about wages?
8:53Do they hold down health in the last 30 days?
8:57Or, I'll go this way, a category of plants in agriculture?
9:03No, I think that there's, it's almost remarkable that the amount of voluntary restraint people have accepted for this 90-day period.
9:14And you're both being the workers in agriculture, most of whom are not organized, generally respected.
9:19Would you all agree with that, that you find it necessary?
9:25Because we have a special problem with the season record, and the policy of the council on adjusting seasonality, I think is critical to care for that.
9:36Well, I think one addition that might be made here is the significance of some of the polls that are taken among neighboring people.
9:45Even though their president was denouncing some of the actions, their people said that 70% of them said that we favor this, and I think this is a real sign of concern and defeat.
9:58Yeah, well, actually, the wage earner, and particularly the wage earner's wife and kids, the budget is highly price conscious.
10:06Even more so sometimes than the person who lives on dividend.
10:11Retired people, of course, are highly price conscious.
10:13Particularly the wage earner.
10:17They're going up, they're raising kids, they're saying, you know, trying to save their education.
10:22Dr. Bill boots for students and all that sort of thing.
10:26Fine, well, thank you.
10:28Thank you.
10:29Mr. President.
10:50I'm in somewhat of a safe spot that Senator Pearson found himself this one time.
10:59He said that before a committee was testified, that it would take 18 minutes to summarize his statement, or 4 minutes to give it.
11:06And so, I think it's always safe to do what I do.
11:09No, sir.
11:10First of all, I want to say that we at the Department of Human Support, the way Christ leads, and we want your economic policy program to succeed.
11:23The broad base of political support that is required for success depends upon the fairness of the adjustments that will follow the degrees.
11:28Your decision to invite us here today is very commendable.
11:30And like John Scott, I express to you my appreciation for the opportunity.
11:32The goal of this planning must be toward a truly effective program to reduce inflation, unemployment, and inequity.
11:54We must question any adjustment or any statement of the economy that is made before a significant adjustment upward is made for farm prices.
12:04In my humble opinion, I will share this.
12:08The 1970 Farm Act effectively set a ceiling for our farm income for a two-year period.
12:17Farm parity at the moment is at 70%.
12:20In the last 60 years, there have only been three years in which the parity ratio was at a lower figure.
12:31Prices for many agricultural commodities in the marketplace are, of course, lower than 70% parity figures.
12:42Your 1970 economic report listed farmers' return on investment capital at only 1.1%.
12:47I feel that this is a fair criteria, because this is the criteria that industry, everyone uses in this country, in terms of what kind of return can you make on investment capital.
13:04Rural America is lagging not only in income, but as everyone knows, in health, education, housing, government services, facilities, and even in most kinds of area-wide planning and development.
13:18In my opinion, the recession in AgriConcert is a drag on the rest of the economy.
13:25I was shocked yesterday in terms of the kinds of figures to find that if the current trend of costs would continue like that in the last two years, that in 1975 it would cost farmers 25% more to farm than it does today.
13:46You have indicated that productivity should be a guideline for upward adjustments of income.
13:54Mr. President, we very strongly support that concept.
13:58You noted in your speech to the dairy farmers in Chicago that agriculture has increased its productivity over the last 20 years by some 300%, twice as fast as the rest of the economy, and as Mr. Carter indicated that...
14:18I heard you say that over there.
14:30part of the agriculture, I leaned over to the fellow next to me and said, I wish we had been.
14:39We see unemployment as a problem, I suppose as bad in some respects as inflation, because we've got a lot of unemployment in rural areas also.
14:55We're concerned about unemployment on a national level,
14:59Because ultimately, our well-being is related to purchasing power of people.
15:03And so, I think what, of course, has to be very important for farmers are concerned.
15:11We certainly support the removal of the dollar from the gold standard.
15:18I would say that we question the continuation of the 10%...
15:23I believe that in the long run, the surcharge, which would fall heaviest on agriculture, I noticed in the paper this day, or so ago, that a working group
15:48on the general green trade tariffs.
15:51It is reported to be saying that GATT members are entitled under the organization's rules to take counteractions against the U.S.
16:03They're saying, of course you can do it if you want to.
16:09Although exports to a lot of people in the United States are relatively unimportant, they sell only 6% of our current dollar economy, but they are extremely vital to agriculture.
16:24One of every four acres goes abroad.
16:28And no other segment of the American economy is as dependent on our foreign sales as its agriculture.
16:35And I'd like to say very critically that increasing exports just for the sake of increasing farm commodity exports is no answer unless it produces meaningful income for the farm.
16:53We run into quite a bit of static on this front, Mr. President, because the idea of producing more and more have no additional impact on this.
17:04The most serious drain on our balance and maintenance, except for the war and the related defense programs such as our involvement in the army,
17:16I think it's been the investment of American dollars that's gone, and I'm hoping, Mr. President, that some additional, that you take a good hard look at that, perhaps some additional limitations, there are limitations now, probably some additional limitations should be placed on overseas investments, particularly inclusion of agriculture.
17:39Agriculture has a way of moving elsewhere.
17:45The most serious omission, I think, in the economic policy so far has been the absence of sitting on interest rates.
17:52I'm well aware of the challenge of the ceiling.
17:56I think this is a very carefully set, very complicated way to explain what is being done, and I'm heartened to know that we are moving forward.
18:06Interest rates and agriculture, that does a tremendous percentage of its business on borrowed money.
18:15Interest rates, high interest rates, are of course a great factor on the agriculture front.
18:24It said the economic report showed that food chains earned a 23.6% return on invested capital as contrasted to the 1.1% brag that I referred to earlier.
18:41This raises a difference.
18:44Excessive profits makes them relatively less dependent on borrowed money.
18:51I hope that the administration will take a good hard look at what should be done on the excess profits front.
19:02Let me just close then, Mr. President, by saying that you have a great deal of support out in the foreign sector
19:11...on the move to take those farmers by a large field.
19:16That it is time to move on the way that they have passed.
19:54That position that was taken when I brought it to the free-flowing of a metal of US currency was a tremendous position.
20:04I think this demonstrates several things.
20:06First, it demonstrates faith and confidence in the integrity of the U.S. dollar.
20:11And it didn't just say that to we people in America, it said it to the world.
20:16And this is important.
20:18We do have faith.
20:19We do have that the U.S. dollar is still the best country in the world, and the integrity of this dollar is important.
20:27The way we regulate the...
20:29Investments in U.S. currency is injecting integrity into our business markets.
20:33And I'm real concerned about this.
20:36We must be the best place in the world to invest in currency.
20:39And we've had some subject on this.
20:42And it is important that we recognize this.
20:45The fact that we've had these imbalances, and you've recognized it by saying that there are imbalances in our economy.
20:54I've said to the world that there is time for us to take a look.
20:57I've been real pleased with several moves here that have been made.
21:02I think that one of the problems that we have is having labor in its rightful position.
21:09as related to the total economy.
21:10And you can't just look at labor by itself.
21:13You can't just look at agriculture by itself.
21:15You can't just look at a business by itself.
21:18We are an economy.
21:20We are here today.
21:21We have a freeze in Force 9.
21:24And the guarantee of this freeze is that we do not create a situation that would allow the elimination of some of the things that have caused the imbalances.
21:35that projected this freeze, then where are we?
21:38And I'm really pleased that we had an opportunity here to meet with you, that you are listening to many people and trying to find the right answer, and the right answer isn't going to be easy, it's going to be simple.
21:51It is really important that we understand the importance of the real security of the American economy.
21:58And the real security of American economy is tied to the confidence that we had in U.S. business, along with the proper kind of relationship as related to labor.
22:13It is important that we have these things.
22:16You can't just look at labor, you can't just look at industry, you can't just look at agriculture, it's a matter of getting the balance.
22:30And it's these imbalances that have created the problem.
22:33So we have real problems, and I wish I had a real simple easy answer to the things that we corrected, and I don't.
22:40I'll say that from the beginning.
22:41It's a very complex thing.
22:43It's a very difficult thing, but we're going to have to move from where we are.
22:48Now, this has been commented on about the uniqueness that we are in today, with inflation on one hand and unemployment on the other.
23:00And this, likewise, is not the answer.
23:03I personally feel that there are some circumstances of confidence.
23:06Of course, the winding down of a war is always a difficult time as far as...
23:14The economy is concerned.
23:15It's difficult to maintain employment.
23:19But along with the inflation thing that we have, there are some things that oppose this, this idea.
23:26And again here, and I don't want to be misunderstood as to my attitude towards labor.
23:32I am not opposed to the right kind of negotiation for people that have the commodity of labor to sell to negotiate for.
23:41But I'm suggesting that we need to have a more equitable position for that negotiation.
23:48And if we have that, then we can have enterprise operating at its max by having the right kind of a plan.
23:55And this is not unrelated to foreign trade.
23:57This is not unrelated.
23:59I've been impressed that two or three years ago, the labor groups themselves were strongly in favor of expanding foreign trade.
24:07Today, too many of them have turned around.
24:09And why?
24:11Because they have been, labor has been a part of the factor that has forced us out of the competitive position.
24:17And you know for the first time in history, for a long time at least, the last four or five months we are in a poor position relative to our imports and exports.
24:27And this points out that we are not in competitive positions in the world.
24:31And we must, in the American economy, we're going to be the leader in the world, and we're going to maintain the kind of economy we have.
24:37We're going to have to be competitors in the business climate if we're going to stay in business.
24:43In my opinion, this is the direction that we have to face.
24:45We can have political direction that will alter temporarily the changes, but unless those directions are about in the right place,
24:55We're going to have adjustment and change, and that political position is not going to be maintained.
25:00So it is important that we recognize the marketplace, and the marketplace has been tried to be disfavored.
25:06As far as I'm concerned, the market is giving direction to the tradition.
25:10And when you try to evade that, and there's no place in the world that I know of where they've been able to evade that for long.
25:17Even in dictator countries where they dictate price, or they dictate supply and productions and all, unless they have the price at about the right price, they're in trouble.
25:29And we'll take this as an example.
25:31This foreign trade thing is really important to the future of not only agriculture, but to the future of the American economy as I hear.
25:40We are too much dependent upon the trades of the world.
25:44There's going to be lots of trade going on in the world, and we need to be a part of it.
25:49The temporary freeze, and I hope that it is a temporary freeze, because I have great confidence in
25:57in the enterprise system working if we set the guidelines that will allow the right kind of negotiation between groups.
26:05And this is the responsibility of government as far as I'm concerned.
26:10This is the responsibility.
26:12I'm hopeful that the 10% import tax will be temporary.
26:16As has been promised, I feel like Tony has just mentioned that it can have repercussions
26:23Upon our trade ballots, upon our foreign trade people that we do business with, I think that the fact that it's been proclaimed is not of lasting significance.
26:33I think that it really attracted their attention.
26:37It really attracted their attention.
26:39And I think that it pointed out to the world that we're not just passing, we're not just standing by and letting anything happen.
26:45We're going to be negotiating, demanding, tough negotiations.
26:49Be there in that whole world trade picture.
26:52I think this is very important.
26:55I think generally those are the points that I am particularly concerned with.
27:03I hope they are held in seat, because I think the total picture is the one I have to be concerned with, and I know this is the one that you have to be concerned with.
27:21Mr. President, on behalf of our people, we certainly appreciate and are honored that we're here today to represent our segment.
27:36And I appreciate Mr. Secretary for calling us to participate.
27:43We do very strongly support your stand that you've taken, Mr. President, in this, and we feel that you're giving the leadership that has been needed.
27:54I have a short statement.
27:56Farmer strongly support President Nixon's leadership in initiating the forceful and dramatic steps to curb domestic inflation because the cost price, which has been a strenuous career sponsor, I think everybody has mentioned this,
28:09that we've had a 7.8% rise in farm prices in the last 20 years, while our costs have increased by 52%.
28:19Farmers as individuals have lost much of their bargaining power, compared to that of major corporations and major labor unions.
28:26Farmers are especially gratified for the exemption for raw farm products in their current freeze, because it shows, Mr. President,
28:34that you recognize that such prices have not contributed to inflation.
28:37You brought this out earlier.
28:40Last November 13th, farmers strongly heard some effective curves on prices and wage rates, so they are tied to productivity.
28:48We think this is very important because productivity has played such an important role in the production of farm stuff that we...
28:56are the best-fed nation in the world, and the housewife today is paying about 16.2% of her spendable income with food, compared to 26% some 20 years ago.
29:06Quite a decrease, and the lowest in the world, I might say.
29:12This is the best standard of performance and the best way to obtain equity and political acceptability for the overall program.
29:20Some sectors of the economy have been getting wage and price increases far exceeding productivity.
29:26I think this is a thing that has really caused these imbalances in the United Nations.
29:31On the other hand, farm prices and income have fallen far behind the demand gains in farmers' productivity.
29:37Farmers note the special attention you gave, Mr. President, to productivity and agriculture in your talk in Chicago on September 3rd.
29:46They are proud of their performance and are gratified by your recognition of this.
29:51We in cooperatives are also gratified by the part and are proud of the part that we have played in this increased productivity over the years in agriculture.
30:03The prices of farm products sold for fresh consumption, such as fruits and vegetables, should continue to be exempt all the way to the consumers, and processed food prices should be exempt up to standards determined by productivity of workers and farmers involved.
30:18The processing, the retail and transportation cost component, which comprises over 60% of processed food prices, should meet the overall standards for productivity of all industrial firms.
30:31Farmers can only approve the amendment.
30:33What you would do there would be to separate out the component of the farm, the raw material, and any of the other administered products.
30:48On the one side you would have the, you would have the, obviously what the mark triggers, you would have the other control, and then that way you would have a, rather than just putting a ceiling on the top, which even depresses the mark.
31:06Yes.
31:08The control of the mark.
31:11Right.
31:12which has to control the distributing and processing margins.
31:18Yeah, the margin.
31:20Tie it in again to show that it gives you the intestinal firms.
31:24Yeah, that's right.
31:27Farmers strongly approve the steps taken to coordinate foreign and domestic economic policy.
31:33They recognize the importance of the 10% import tax surcharge as a temporary measure to get the attention of our trading partners.
31:41However, this surcharge must be temporary or it will hurt farm income because it will lead to retaliation of farm exports and damaging the world trade conflict.
31:5010% surcharge removal can be tied to multilateral negotiation on such matters as exchange rates, tariff and non-tariff barriers, and sharing of worldwide responsibilities for peace.
32:03This surcharge can be justified in the short run if it leads to trade expansion in the long run.
32:09Therefore, farmers' orders prompt initiation of multilateral negotiations, which will lead to removal of the 10% import tax surcharge.
32:19Through self-help programs and cooperatives, farmers have and are improving our economic system by working together to inject competition and to improve efficiency in marketing farm products and in procuring farm production supplies.
32:34Group action by farmers can increase competition as a positive anti-inflationary restraint on farm costs and a positive force to bring prices of farm products in line with productivity.
32:46They earnestly solicit the president's continued support for this kind of group action.
32:52And closing again, I think that this is, with agriculture being the backbone of the nation, I think it's very encouraging to us that we have been invited here as a group to present our views, and also I think that there's a lot of work that we can do among ourselves to work more closely together to improve our life.
33:13Thank you.
33:18Mr. President, we appreciate the opportunity and the secretary and members of the staff here.
33:27The few remarks that I have to make, if I may put it in perspective also, as Bill Coots said, that I think we have to look at the total problem and try to weave this into what problems are causing balances.
33:44I think if you...
33:45really rose to the statesmanship level and increased.
33:50That accomplished not only giving you a position of the offensive and the international trade problems, the deficit of payment, but I think you've made the move that many of the countries that we built back for the Marshall Plan made it possible for them to come forward that we're destroying our dollar, and that this had to be stopped.
34:11I think that it also brought the attention to the people of this country that you were focusing not only attention, but action on this front.
34:21That is a vital concern that everyone should have.
34:24I think that...
34:26I'm going to try shortly to relay some of the viewpoints that we have on the total economy.
34:35I think that the problems that you face now as president are certainly not problems that have been created just now.
34:42They've been growing problems that have not been met for the last 10 or 12 years.
34:49I think that you come to the point that one thing that I'm always concerned about is that I remember the days of FDR when everything seemed to be coming along, but I remember 1937 when we, I believe, we were beginning to drop back as it had been for the war build-up.
35:08No one really knows what would have happened.
35:12But the problem is, we've never had a global climate of equity in these kinds of economies, and it's all hopeful that we're getting there.
35:22I think that the unusual factors that we have are the inflation that is still being viewed.
35:29On the other side, we have the situation where we have an enlarged segment of our population.
35:35Now, how do we tackle this, and how does the farm picture fit into it?
35:39I think that Senator Jekyll's state convention Saturday evening, in which he pointed out that if you were the first president that he had ever discussed three times since you've been president,
35:52That is something about bringing the farm and cattle level up for the rest of the economy.
35:58Of course, where all those skeptical agriculture has been forgotten.
36:02And now we're going to try to briefly say specifically how that we feel in general outlines of what the alternatives are.
36:17I think that you have to meet both the problem, the other problem of economic recession, although it serves a great purpose, it throws imbalances, and it's probably an unenforceable situation over a very long period of time, which would
36:35The situation as we see it, on the one hand, the fuel that
36:58is still being put into the inflationary segment of our economy, is twofold.
37:06One is that I think you have a situation that our economy is very different than it's ever been before.
37:12That you have a large conglomerate corporate structures that have the ability to administer prices
37:19Therefore, when you have a drop in the volume up, they raise the price of the refrigerator $15 to continue the profits.
37:28A few things that I understand, that when the GNP goes down, the inflation increases on some of these very essential items to the American people.
37:39So I think that we try to get out of raising the interest rates and trying to correct the problem by cutting back the supply of money.
37:51This is the taxation on the higher income groups and on the larger profits.
37:56Very carefully not to destroy the incentive and the free enterprise capitalistic structure that we have.
38:06This could pay also, as we go, some of the situations that we need to subestimate.
38:15On the other hand, you have situations where labor is concerned.
38:20I do think, though, that leadership has a particular role that they should play and must play.
38:26They have the role of fighting for the welfare of people that they represent, but I think they have to exercise leadership when those get beyond what they should be.
38:36And there are some imbalances in some of the adsorbent wage contracts that have been negotiated by the various unions.
38:45It's not across the board, but in some instances.
38:50And this is going to be a very difficult decision for you to make in fairness.
38:58The other situation that I want to talk about particularly, what the agriculture sector...
39:05As far as the economic recession part of the problem is, I think that your attention here, recognizing agriculture as the first example that we've had in the last recent years, where the president has focused attention on agriculture as an equal part of the economy.
39:32And I think this is of vital importance, and I'd like to point out an example of why I feel so strongly about this, not only because they overlook.
39:40When you fly across the country at night, you find that there's a large city 300 miles farther, another big metropolitan area.
39:48But as you look down and you see an accumulation of lights in a 2, 3, or 5, 10,000 city or town,
39:56And you see those little poles right here and one there, a mile or half a mile apart.
40:02It means that those small towns are the service centers for those individual lives.
40:08That's a farmer.
40:09And we're not talking about just a small segment of the population.
40:15We're talking about 30% of the people in this nation that are directly tied to the level of income that the farmer receives.
40:25Because when you force those lights out, out there, those individual lights, you're forcing out the lights of the people in the small towns, and it means that those lights have all disappeared and went to the cities.
40:39And therefore, we have a situation where that, unless we...
40:44I do something about, with half the poverty in the rural areas, the best rural area development program is increasing farm income.
40:57Because when you increase farm income, it's less of the inflationary problems because of the smaller percent of the consumer dollar that does go to the farmers, or it's the same as product and concern.
41:11In order to tackle this, I think
41:13I have to suggest five specific things.
41:17One is that the loaning of interest rates.
41:19I think the route that we have gone in this is very difficult.
41:27It prohibits the small business man to get the credit that the larger corporate structures of course have access to the credit.
41:36I think that it creates the unemployment situation.
41:42I think the next thing that you, a big problem that you have to face, that...
41:48The days of Teddy Roosevelt, he moved some corporate structures, and I believe one of your statements that we're going down the lone road to ruin, or someone has made that, and not applying to this particular situation, but when the Roman Empire collapsed, one of the factors was that some few hundred people owned all the wealth in the country.
42:13Now, I'm not socialistic in nature, but I do think that there comes a time when they can get out of control.
42:19You have the interlocking directors in so many of the companies that makes it possible for them to administer prices.
42:28And this means that with the large conglomerate structures, that this has to be tackled with the antitrust, the enforcement,
42:38in order to be able, and aggressively, because you don't have to stop them, it's a rollback, as far as I'm concerned, of this particular thing.
42:48I think as far as the wages, I'm strongly requiring an equitable margin, but I think that there has to be decisions made on some of the inequities that have been built into this.
43:02I think the next thing is that
43:05In the countries that we have helped develop, now they have the dollar in their currency to pay for some American products.
43:15I'm not saying some are.
43:18I think this is entirely your decision of how you have to do it, and use the strategy to get the things that you have to have, not only for farmers, but for the total economy.
43:30Without that there, without your ability to do that, it's...
43:33As you negotiate throughout the world on the monetary situation, that has to be your awesome decision, that you have to make the decision, because only you and your people in the cabinet know what the situations are.
43:48We'll rest back with your judgment on that, but I'm not as fearful of retaliation as many are, because you're on the offensive.
43:58And I think this is important.
44:00You certainly notice that you are on the offensive and you are willing to take the stand necessary.
44:06And that you are to protect the dollar and you are to protect the economy.
44:11I think the thing that's getting down, and I'd like to stay in passing with this opportunity, the agricultural plan is at great jeopardy, Mr. President.
44:23The average age of farmers is 50 years.
44:26We've gone the route to where you had to decrease the number of farmers to move them into the more efficient parts of the segments of the economy.
44:36But there comes a time when that trend has to be stopped, because I think we'd be deeply concerned if the average age of their electronic engineers were 58.
44:45I think we have to be just as concerned with the average age of markets at that, because they're the people
44:52that have to have experienced management know-how, they're going to have to have the credit capabilities to enter business, but they have to have a profit also.
45:00And I would say here that this, of course, has to be able to be in an organized economy to use their economic strength.
45:10But I think that on the worldwide situation, in those commodities,
45:16were that the countries that have the dollar have to have the products.
45:24And we are the major source of supply.
45:28And Japan is very interested in their future food supply.
45:32They're very concerned about the Japanese government.
45:35And they're concerned about where the supply is going to come in 15 years from now as the world population continues to increase.
45:43I think that where they have the ability, and where we have most of the profit, that we ought to be in a position of not worrying about a jumping situation that has killed the price in the past.
45:55But we ought to go for international agreements,
46:00that establish floors under farm products, on every farm product that we can, with the exporting countries.
46:07And I think this is possible, and visiting with the Common Market Company, a country representative, to do it on several of the agricultural commodities.
46:17And if we can establish the international floor agreements,
46:21This I would like to recommend that you explore every possible avenue.
46:27This then alleviates the problem that Secretary Martin has of giving up farm income in our country.
46:37And then of course of raising price supports to give the minimum floor prices to all that we possibly can.
46:44Because by doing this, you put the economy in rural America in a position of profit.
46:52And when you put the economy of farmers in a profit position, it means that you put the rural communities in a profit position.
47:00And by building this type of economics, in the final statement, if you, in rural development, if you take a small town,
47:11And they give them a series disposal system with half of it in grants, let's say a million dollars system.
47:19And half of it in grants, you leave them with a half a million in debt and interest to pay on that.
47:25But they're doing it in the hope of being able to attract industry basically, which may or may not develop.
47:32You can spend 50 billion dollars in the next three to four years in world development.
47:38But I believe many of the economists will agree that at some there's a difference in agreement as to what level.
47:47But when you go back to the raw material productivity,
47:52And a dollar increase in income there multiplies itself through the economy.
47:57Some will say three and a half times, and some four, and some five.
48:01I will not go along with some of the old time economists to say seven, but somewhere this happens.
48:10What I'm saying is with an extra ten or twelve billion dollar increase in farm income in that period of time, you have invested
48:20in productivity that will multiply itself through the economy.
48:25But not only multiply itself through the economy, but will use the one vital area of rural America where you can invest the money and get a better return than anywhere else, I believe.
48:38And the total effect that agriculture still being the largest user of oil.
48:44I think we forgot one very important point.
48:49That is, although there are less farmers, the economic impact is still almost as great as it's ever been.
48:58Because of the big investment, the big cost of operating the agricultural plant.
49:04And that although the numbers are less, the economic impact, and I don't believe that any economic policy can succeed.
49:13Unless we look at this 30% of the people that are tied to the farm income level.
49:21And this, I think, is where you have to tackle a very important part of the economic recession through this country compared to the inflationary.
49:33Second.
50:01What should be the policy?
50:04How much is there to be?
50:06And what should be the mechanism in your judgment?
50:11Recognizing that there are strong political forces at work here, what should be the mechanism for dealing with it?
50:22That's a big question.
50:25Let me try, rather than putting it quite as broadly as that, let me say, is there a kind of agreement in the group that there shouldn't be a follow-up program?
50:36In other words, I understand you've got a wage price freeze.
50:38A wage price freeze.
50:41will only work for a limited time without a huge bureaucracy, and of course also without an enormous public support utility, generally by war.
50:53To have a wage price freeze working in peacetime is extremely unusual.
50:58The fact that the American people have responded so effectively as they have, and particularly that American labor has to wage freeze, because it's an indication that people are concerned about it, and they're willing to make temporary sacrifices.
51:16On the other hand, you cannot expect that wage price freeze beyond, say, 90 days, maybe it goes on 120, maybe it goes on, I don't know,
51:26another 30 days, whatever the case might be.
51:29But beyond that, there is a point that all the experts agree that the inequities, other risk-deferring teachers' salaries, risk-deferring others, and risk-deferring some,
51:40price adjustments, and there are literally thousands of price decisions, as you know, made around the country, there comes a time when those inequities blow the system out, and then you have to degrade the rules of government, frankly, enforcers of other countries, which we don't want to do.
51:57On the other hand, there seems to be general agreement between the labor group and the business group, while they would do it in different ways, general agreement, that there should be what they call a follow-up program,
52:10programmet which we should attempt to, after taking this very drastic action that we attempt to,
52:23keep the lid on so that it doesn't just blow out and get worse than it was before, which it might, and all these kind of forces might just go right out like that.
52:34Now, you've all indicated that you, and I've noticed that several of you have indicated here, that any decision that is made with regard to agricultural commodities, that we should look at the freeze as it affects
52:51A processed food sold in a grocery store, that when you increase that price, it inevitably has considerable direct increase in the farm price, too.
53:04I understand that.
53:04But now we come to the point, it goes to what we want from here, which is a general agreement, we could buy something or nothing, or that tree we could have.
53:13You don't need to use precise, because we haven't made up our minds either.
53:16Well, let me say it.
53:18We've made up our minds there.
53:21I believe there has to be a follow-on program.
53:24I believe also the follow-on program should be one that has to be effective.
53:29I think that on the other hand...
53:33We have to recognize that in the long run, the answer to our problems is not a continuing government ticket about wages and prices.
53:43The answer to our problems are policies, increased productivity, proper monetary and fiscal policies, which is the policy that controls them.
53:53Unless we have what we call, each of us has a different definition of it,
53:57Unless we have a free environment operating, we aren't going to end this.
54:02I feel very strongly that we should look upon this as a very necessary temporary measure, the 90-day freeze, to be followed by a very necessary action over a period of time, but not across the board, no exceptions.
54:24In fact, we
54:26Thank you very much.
54:47There are some pressures that are created by different groups that cause change.
54:54But the basic factor is the dollar input of government debts.
55:11We've gotten, we've evolved to where we are, and we're going to evolve from where we are to a better position.
55:24And I think that we are in a good position now to take a look.
55:27And I don't know the answer as to the kind of a formula.
55:31I think there are certain guidelines that are the right ones.
55:34And these guidelines that we talk about, as far as I'm concerned, can be real productive in getting the balance between different groups.
55:43For instance, there might be some merit in taking a look at a labor policy that would allow the taking of either one or the other of the last two proposals.
55:57I think this would breed some integrity under some of the labor negotiations.
56:00I personally feel that there's a way to run it.
56:03And I think this would tend to eliminate it.
56:05We're out of line, and there's just a set of how you manipulate and operate this is something else.
56:11But these kind of guidelines, I think, can evolve us from where we are to an operating economy that I'm sure we all want to achieve.
56:25Mr. President, I'd say you put it in good perspective in terms of the situation we face after the 90 days.
56:34I would, for one, strongly urge that there be a follow-up program.
56:42I think we're in a spot in the country that everybody's waiting now.
56:50They're poised, you know, to...
56:52I think not to take some strong positions.
56:57I had more of the bureaucracy thing you were talking about.
57:02And yet, I feel that I don't know how you're going to do it.
57:09I don't know just exactly what kind of a format you'll use.
57:14I don't want to draw on anything that's been done in the past, because I don't think that was very successful.
57:22But I feel very strongly that it has to be a firm program, and for whatever additional spirit is required to manage this achievement,
57:31Oh, it's got to have some teeth.
57:33It's got to have some teeth.
57:33It will.
57:34Otherwise it'll run away again.
57:37You try not to have... You say it'll take your factor to make it work.
57:43Is a...
57:46is a majority of public support.
57:48You've got to have that.
57:50But on the other hand, if you have too many calciums who go off and say, well, we're going to get off and get ours, then eventually that breaks the emphasis of justice.
58:03You'll have the decent people, the people that want to do what the people want in the country.
58:07But if they say, well, gee, this guy's doing it, and this guy's doing it, and this guy's doing it, and people are all doing it, they're going to do it themselves.
58:14That's why you gotta have something to eat in it.
58:18I think that the problem
58:20of establishing a board, which I agree has to be.
58:23A board?
58:25Or something.
58:25And I hope agriculture is well represented on that.
58:30But the point is that a board, that if you give the enforcement authority, if you run into the bureaucracy along a farther on down line, that they have to meet the problems, unless you do it on a broad scope.
58:45I think that my quick question
58:49The only way that you can meet the problems is to get those two facets together.
59:08in the best statesmanlike manner that you can.
59:12And I think this is good politics in the end.
59:15I think that the majority of the people in this country now are looking for firm leadership that might not be popular right at that particular moment, but if it gets results, it will be the most popular and it will lead to the best politics in the months ahead.
59:31I think that you have to get it from the two standpoints.
59:36I think on the one that I would say that a new tax program that maybe you could even control down to the inflationary wages as far as wages.
59:48Some of them are getting up high enough that maybe you could touch it this way.
59:54But as far as your profits are concerned...
59:59This I would hit too.
1:00:02Always keeping in mind that you may tighten it a little too tight in the initial phase, but you can relax it a little, not to destroy it.
1:00:12I would of course lower the interest rates to as much as possible, and with all your factors, you always have to be a much better judge than I am, unless you know the factors and I don't.
1:00:25then I think I would take a move realizing that the real problem with the economic depress is that you've got a highly organized group of people here that, with their interlocking directors, have the ability to administer prices.
1:00:38You have the organized labor forces that are strong, that have the ability to raise the wages, but then, every time they raise their prices, or they raise their wages, the unorganized people
1:00:53then get weaker and weaker.
1:00:54And that's where I think that you have to take direct action in doing everything that's feasible in raising the farm prices and doing every other step to take and keep it divided into the two facets.
1:01:07On the one hand, to take the steps necessary to cool down the inflationary fuel that's going into those segments of the economy.
1:01:16If it means the same wages at a certain level, at a certain allowance,
1:01:22The contracts, this, you get something that you can't administer.
1:01:28And if you get too involved in trying to cover the entire waterfront, I'm afraid that you will have created a board which a few months from now will have been ineffective because although they had teeth, it's going to take a bureaucracy to carry those teeth out.
1:01:45And the only way, I think, my suggestion, the humble suggestion would be to
1:01:51to attack the end that's more inspiring, the inflation, and take the steps to stop that, and then take the other facets to try to do something in the unorganized people to create an economic growth which will create employment, which will put many people back to work by getting it on that end.
1:02:14Well, Mr. President, I would just say that the Greens go hard and support a good program.
1:02:22Can you be on the streets?
1:02:24I think that you do have this at your advantage.
1:02:27There are many people that are saying, well, you put off doing this too long.
1:02:31But, be that as it may, the situation has gotten so bad that you do now have broad assistance and support for some kind of a program.
1:02:40We don't think that the voluntary program where you get somebody from labor, industry, agriculture and consumers down to get them to work at all has to be a governmental group with authority.
1:02:54And the other comments that are made here in terms of dealing with the prices and wages that we agree with, I'm not too sure that
1:03:07that the financial file labor itself is not willing to admit that the revenues of runaway contracts and goods changes.
1:03:17They do have assurance that some of their national leaders, the difficulty is that some of their national leaders can't control some of the wild air.
1:03:31I think that when a rank and file man in labor is assured that there is some attention being given to his cost of living, that he's going to be willing to accept to be trained on his wages along with that.
1:03:46As far as this goes, the Greens will include the Federal Reserve and the government to work at that in the usual way.
1:03:56The idea, of course, that especially those in agriculture are much concerned about high interest rates when we don't have a compensating high sales price for our products.
1:04:07Excess profits, of course, that's, I think, down the road someplace.
1:04:11I don't think that's something that the president doesn't really need to be concerned about at this moment.
1:04:19Because, actually, if we could don't show that there are too much of this on our side.
1:04:25I think Mr. Craig, we all believe very strongly in the free enterprise system, and I personally feel that in order to protect the free enterprise system, it's not even mandatory for you to continue with some type of control without setting up another bureaucracy, as you point out.
1:04:41But I do believe that the step that you take, you need.
1:04:45The dynamic leadership that you've shown in this has unified this country more than they've been unified in a long time.
1:04:51I think this is one of the keys to success, and to continue on this line is the unification of these important things that we have facing us today in this great land of ours.
1:05:11You may have said very much about food prices.
1:05:13Do you want to get anything else in the mix?
1:05:21We covered the point pretty well, which I think is a critical problem.
1:05:27And also, it gets back, George, to the thing that I know Paul meant, the thing that you know we've been working on, the thing I've been constantly talking about, those dams that were under crisis, the spread.
1:05:44Now, what was the figure you used?
1:05:4623.6.
1:05:4623.6?
1:05:47That's compared to 1.1.
1:05:48So why would anybody want to be a farmer?
1:05:54Mr. President, you have that same circumstance in a lot of businesses.
1:06:03There isn't much in business.
1:06:05More personal risk is capital and is management.
1:06:09It was moving into a new business century.
1:06:13And this likewise wanted to...
1:06:14I think it's really important the direction we're going.
1:06:20Yeah, products and business, for example, Germany's manufacturing, steel, etc., are very low.
1:06:26And now people say, well, that's good.
1:06:29I mean, the steel guys are going to get richer.
1:06:31The main difficulty with that, just taking steel as an example, is that their profits become too low, they have less to invest in new plants, and as a result, they are less able to compete in the world market, which, when we talk about the world market, we want to remember it is also the market of the United States.
1:06:50This is the biggest market in the world, and all the world wants to sell to us.
1:06:54Let me cover a couple of points that you have braved,
1:06:58In terms of this, but first with regard to the follow-on program, any ideas that you have, any career ideas, and you will have a chance to talk to some of your associates and have something.
1:07:10If you would pass along a clip between now and the 30th of September, from the 30th of September, we've got to have all the input that we want, that we can have, because we will have a decision.
1:07:20I mean, not a decision, but we have to, it will be a decision, but we will announce it.
1:07:30The second point that I would like to make is with regard to this problem of imports and the import surcharges of manufactured commodities.
1:07:43True, you talk about, well, import surcharge, we're concerned about that.
1:07:48And, of course, even having a dollar note, which, of course, is an effect of import surcharge, too.
1:07:58Because of the unfavorable...
1:08:02The balance that we have with some countries, particularly the Japanese and some European countries, is a result of the R&D back then.
1:08:11Their currency's relationship to ours was that we just meant that they could sell even better than we did.
1:08:19The effect of that could bring some retaliation that's been threatened.
1:08:24However, let us understand what the long-term reason for both actions was.
1:08:30We allow the dollar flow, and we have the import surcharge for the purpose of setting exchange rates right, in other words, so that we were not at a competitive disadvantage in the world.
1:08:45And as far as the surcharge is concerned, not as a permanent wall behind which we would continue to be inefficient in those areas where we could not compete,
1:08:56but for the purpose again of stimulating, jiggering some of our foreign friends into being more reasonable in recognizing their responsibility to adjust their exchange rates, for example, to reduce some of their non-tariff barriers, and in another field, for example, to be more receptive when it comes to
1:09:23taking products that we are competitive in, like agriculture, and they currently are.
1:09:29What I'm getting at is this.
1:09:30In the long term, I don't know of any part of American industry, and I use agriculture in that broad sense, that I think could get a greater dividend out of our foreign action than agriculture, for this fundamental reason.
1:09:50When you might even come down to it, you want to remember that the only thing we can really sell abroad is something that really is competitive.
1:09:59In other words, you raise the surcharge, you let the dollar float and all that, and we can't make great deals with these Japanese that are going to sell abroad.
1:10:09All we're doing is keeping them out of this market.
1:10:12As far as agricultural products are concerned, they are competitive against states.
1:10:17In other words,
1:10:20The purpose of this action is not simply to keep other products out of our markets, but to open up other markets to our products that are competitive.
1:10:35Now, agriculture being, because of its high productivity, is highly, is in a highly competitive position in the world.
1:10:41You can sell in almost anything, any place in the world, you know, items like soybeans and so forth and so on.
1:10:49So, as these adjustments are worked out, and as we move to what we hope is more tricky, because it has been more tricky, we can only...
1:10:59So as much as we're willing to get more and more trade, a major beneficiary will be agriculture.
1:11:05Let me say, too, that Secretary Conlon, as he goes abroad, all of our people who have anything to do with trade,
1:11:16are keenly aware of the responsibility they have to do everything we can to play this strong, to say that our European friends and others and so forth want to help us.
1:11:29We've got some agricultural products, we can sell some of those.
1:11:38Because while it is true that agriculture does provide, and it is the major, now that we've moved virtually out of the airplane business, as far as nutrition is concerned, it is the major producer of foreign exchange.
1:11:55as far as trade is concerned, two billion dollars for a balance, a favorable balance, two billion dollars a year.
1:12:04Why is it that here we believe that there are even greater opportunities in the future?
1:12:12Now you've heard that often, you know, everybody, I don't know, every campaign says we've got to have more and chances to sell agriculture come out of the ground.
1:12:22True.
1:12:23I'm telling you that we have no illusions with regard to what our long-range purpose is.
1:12:32Short-range, yes, there will be attempts to retaliate.
1:12:36But long-range, we are building a new system.
1:12:40A new system that will be more fair to the United States in terms of what we can sell and what they can buy, what we can buy and what they can sell.
1:12:49As we build that more fair system,
1:12:52A commodity which is highly competitive and has a high element of productivity to it.
1:13:01Efficiency.
1:13:01American agriculture is not about that.
1:13:04Not commodities.
1:13:05You can't sell anything abroad that is not competitive.
1:13:09So we have this very much in mind.
1:13:12This is a big thing.
1:13:17In terms of our general program, let me say that it is all part of an overall package.
1:13:32For example, we have as you know some tax
1:13:39The reductions in the recommended amount of the excise tax and the job investment credit, which is about 700,000 farmers took advantage of in 1962-65, so it was not too bad for agriculture in that field.
1:14:01It's very important to realize that I believe, as I said in my message to Congress the other day, we cannot cut taxes without having a corresponding cut in spending, because then all you do is to build a fire of inflation that this witch Bryce Brees can only put the lid on for a while.
1:14:24He had that fire blow up, so he said he would blow the top of the tea kettle.
1:14:29It's like that.
1:14:31So, we're keenly aware of the point you made there, of the necessity of coming and spending.
1:14:37Now George Shultz will tell you he is hard.
1:14:39I got to talk about coming.
1:14:40Everybody says, that's great, except for us.
1:14:44Everybody wants to cut somebody else's expenditure.
1:14:47And I understand that.
1:14:49We all understand that.
1:14:50But we're taking very hard looks at this.
1:14:53For example, the deferral of a wage increase for government employees.
1:14:58The Congress will be taking that up this week.
1:15:00It is vitally important that that be deferred.
1:15:03I say that not because I don't like to see the government close, but that's only for six months.
1:15:08The point is that, as we have a follow-on program, following the freeze, a program which we're going to ask, say, a private sector to...
1:15:19I want to keep the lid on these wage increases and so forth for government to go along and say, well, we're just going ahead.
1:15:28Will they tell you without regard to this?
1:15:29It's not worth it.
1:15:31And also, it costs a lot of money.
1:15:33In other words, this provides, the deferral of wage increase provides some of the money that we need.
1:15:40To cut the channel on the number of government employees, it's only 5%.
1:15:45I've been around government for a long time, and there's inefficiency everywhere.
1:15:49There's even inefficiency on a farmhouse, although not as much as in some other areas.
1:15:56But if you look around government, they predict a 5% cut in any agency, any agency, with no strength.
1:16:08I'd like to just make a brief comment here about the attitude that I get expressed from many, many fathers.
1:16:17They are in support of your policy.
1:16:20They have great confidence in the way you move.
1:16:26But we have to understand that, and they keep relating to us, that the problem is that here, and I suppose every segment of industry would find this kind of an argument, that I think we have a pretty well-based agriculture, that agriculture is frozen at the bottom of the loop.
1:16:46We're now at 70% of parity, and at the depths of depression, we're only operating down to 77%, so we're about as bad off as we can be.
1:16:52And we say, here, we don't want an extended program.
1:16:56that freezes agriculture in this unfavorable position because this is the very things that Orm Lee comments about as related to the total economy.
1:17:05And if we freeze this agricultural end of our total ball at the bottom of the pit, where in real difficulty, and a lot of farmers have made this comment to me, they said, well, we sure wouldn't on a temporary basis here see the freeze, see the...
1:17:24free on prices, on wages, but let's don't get caught in the position.
1:17:29There's some imbalances that have created this position you're in, and let's don't get thrown into that position.
1:17:36And also, when they have a ball, they don't want to get stuck in the mud.
1:17:41I understand.
1:17:42I understand.
1:17:45I like this part of it.
1:17:48The part of it was there increased costs.
1:17:53And the pricing policy is 17 cents, 17 and a half.
1:17:59And the value for one.
1:18:03They're very unhappy about the prices they're receiving.
1:18:06It's part of the dollar.
1:18:09That's about what it is.
1:18:11It's a big problem.
1:18:13But I think that the secretary here can work out some solutions as well.
1:18:21With our help and advice, along with some of these matters, we've got an income situation that is affecting every rural businessman because their accounts are seen to be very high.
1:18:39And this is a very critical issue because if they face a loading time period and their account is receivable on fertilizer and cleaning and all this type, it's a very critical importance.
1:18:53You know, in second one respect, so that you realize this, we talk about the number of people represented.
1:19:01There are 85 million waiters.
1:19:02There are 85 million waiters.
1:19:17However, I am keenly aware of the fact that on two counts, that we should have five groups, and one, as I've said often, that a great country has to have, or in my view, generally has to have a strong base in agriculture.
1:19:37And we have always had it, and we should continue to have it.
1:19:41In terms of our international situation, agriculture is our major advantage.
1:19:49It's the thing where we're most productive, so we can study the world in agriculture, so we've got to continue to have it.
1:19:56And third is the other point, speaking totally in presence.
1:20:00Well, there are only a few farmers who they matter, and you go down and talk to congressmen and senators, how much do they matter.
1:20:07The point that was made here earlier, that when you look down, you go across the country, you see those little lights kind of go down there, and you see a little cluster of guns and so forth.
1:20:22Actually, 30% is probably a modest figure.
1:20:24A lot of others are affected indirectly, but certainly 30% of the people in this country are quite aware of the fact that they have a stake in a strong agricultural economy.
1:20:39I think the other point that I would close on is to reiterate what I said.
1:20:44I said it on other occasions, but it really didn't get picked up much until I had a Chicago speech, reiterating the point
1:20:52that with all the things about the cost of our food programs and all that sort of thing, why are we subsidizing agriculture, and what about the requirements for these Cadillacs, et cetera, et cetera, that the American housewife
1:21:10person pays a smaller percentage of her income for foodstuffs than she did five years ago, ten years ago, and so forth.
1:21:19It goes down and down and down.
1:21:21And, even more important, that the American housewife sets a better table than any housewife in the world with a less percentage
1:21:32of her banded budget going for that table than any country in the world.
1:21:37Now that's an enormous achievement.
1:21:39And I'm aware of that.
1:21:40We're aware of that.
1:21:41That's why we have you here.
1:21:42We want to, we're going to try to, we believe in this something down this state that will help you much.
1:21:48We've got a dollar car and 17 cent cars that leads our hearts in the right direction.
1:21:53We'll work on it.
1:21:55I think that our productivity and our competitive is being very critically threatened today.
1:22:05Starting with the secondary boycott of farm products in the marketplace.
1:22:12And having gone through a...
1:22:13But you're catching it out there, what part?
1:22:15Are you from the north?
1:22:16No, I'm from Fresno.
1:22:17Fresno, that's what I mean, in the central area.
1:22:19So I don't know where you catch it there.
1:22:22And we have been catching it, and I think this is very critical.
1:22:24I'm talking about our balance of trade.
1:22:27If this is allowed to continue, I think no longer will we be in an effective position in this country on our farm produce, just because this is a very serious thing.
1:22:38I've talked to Secretary Merchant about this.
1:22:41And have you been involved firsthand to see what is taking place?
1:22:44Because first of all, the employee is introducing the right of self-determination.
1:22:50The employer is using the right to hire who he would like, and also the housewife or the consumer, whatever that product is, is losing the right of free choice of product.
1:23:01And to me, I think the far-reaching implications of this is one of the most serious things that has plagued agriculture or this country since agriculture is a bad culture.
1:23:12Bob, your question.
1:23:14There's been two contracts that have been signed within the last two weeks that have forbidden or prohibited any mechanical apparatus of any type that is not presently used for a three-year production.
1:23:30What is that?
1:23:32Who signed it?
1:23:32Who did the man that signed it?
1:23:34Well, first of all, the first one came up, ours, because a few blind products were being boycotted.
1:23:41They were coerced and forced into signing a contract that also made it this far to this, who decided to quit Q4, United Farm Workers Organizing Campaign.
1:23:52And we're cutting in with them and being the sole supplier which has a problem with our contract.
1:23:57And recently, last Friday, another organization signed a similar contract.
1:24:02So when we talk about the technological advances that we've made in agriculture, and the fact that we've actually been subsidizing the consumer, this trend is going to reverse itself very quickly if this is allowed to continue.
1:24:15To continue that.
1:24:16To me, having been on the front line there, it's very serious.
1:24:20And it's something that we really have to reflect on.
1:24:24It's going to be the downfall of this.
1:24:27Well, let me tell you that.
1:24:29Speak louder than words.
1:24:30I want you to know that despite all the political media I've been mentioning since 1968, in a sense, I never have quit eating grapes.
1:24:38Thank you very much.
1:24:40I want to send a few little crinkets that you might want to take home with you at...
1:24:44We appreciate this, and we'll try to work on these problems.
1:24:50Let's just do that and get a break.
1:24:55Goodbye.
1:24:56Goodbye.
1:24:57Goodbye.
1:24:58Goodbye.
1:24:58Goodbye.
1:24:59Goodbye.
1:25:01Goodbye.
1:25:03Goodbye.
1:25:04Goodbye.
1:25:11Good, good.
1:25:11All right, fine.
1:25:11I love it.
1:25:12I love it.
1:25:12I love it.

Nixon, Kuhfuss & Scott on wage-price freeze and agricultural policy

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Nixon Library Finding Aid

Also recorded on September 14, 1971

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