from thirty to forty per cent of the pork and pork products produced in
the United States, and the price paid by them would obviously determine
the price for the whole amount.

With this power, derived solely by agreement, and not, as many of the
producers seemed to understand, or rather, misunderstand, by
governmental authority exercised, as in the case of wheat, to establish
a government-backed guarantee, the Food Administrator announced on
November 3, 1917, that:

"The prices (of hogs) so far as we can effect them will not go
below a minimum of about $15.50 per hundredweight for the average
of the packers' droves on the Chicago market until further
notice.... We have had and shall have the advice of a board
composed of practical hog-growers and experts. That board advises
us that the best yardstick to measure the cost of production of
hogs is the cost of corn. The board further advises that the ratio
of corn price to hog price on the average over a series of years
has been about twelve to one (or a little less). In the past when
the ratio has gone lower than twelve to one, the stock of hogs in
the country has decreased. When it was higher than twelve the hogs
have increased. The board has given its judgment that to bring the
stock of hogs back to normal under the present conditions the ratio
should be about thirteen. Therefore, as to the hogs farrowed next
spring, we will try to stabilize the price so that the farmer can
count on getting for each one hundred pounds of hog ready for
market, thirteen times the average cost per bushel of the corn fed
to the hogs.... But let there be no misunderstanding of this
statement. It is not a guarantee backed by money. It is not a
promise by the packers. It is a statement of the intention and
policy of the Food Administration which means to do justice to the
farmer."

The effect of Hoover's action to accomplish the imperatively needed
stimulated production of hogs began to appear by the next July and from
that time on was very marked, the production reaching an increase over
normal of thirty percent. The price assured to the farmers by the Food
Administration was maintained uniformly from November, 1917, to August,
1918. In October, however, a critical situation arose because, by reason
of the growing peace talk, a sharp decline in the price of corn occurred
and this