decline spread fear among the growers that a similar reduction
would take place in the price of hogs because of the fixed thirteen to
one corn and hog ratio. A rapid marketing of hogs ensued which broke the
price.
With the Armistice there was an immediate change of attitude on the part
of the Allies who had been trying to build up reserves of pork products
to use in times of possible increased difficulty of transportation. They
now moved promptly toward a reduction of purchases. This made serious
difficulties in maintaining the price to the producers during the months
of December, January, and February. But Hoover's original assurance to
the growers covered these months. It required most vigorous pressure on
his part to compel the Allies to live up to their purchasing agreements.
But he was finally successful in disposing of the material offered by
the growers and thus was able to keep faith with them.
Some criticism of the Food Administration because of this maintenance of
prices was voiced by consumers. But two important things must be
remembered in this connection. In the first place the stabilized price
was established primarily for the sake of stimulating an imperatively
needed increased production. In the second place the assurance of the
Food Administration given to the growers in November, 1917, that it
would do what it could to maintain the price for hogs farrowed in the
spring of 1918 covered sales extending to the spring of 1919. No one
knew that an armistice would come in November, 1918. The only safe plan
was to try to insure a food supply for a reasonably long time in
advance. To have broken the agreement with the producers when the
armistice came would have caused many of them great, even ruinous
losses. Besides it would have been a plain breach of faith. Hoover
would not do it.
In March, 1919, the War Trade Board was no longer willing to continue
its export restrictions. It was only by virtue of these that the Food
Administration had any control of the situation. They were canceled and
from that time on the market was uncontrolled. But by then, the major
hog run was disposed of, and the Food Administration had acquitted
itself of its obligation to the producers.
This is a long and dry story of pigs and corn and difficulty. But I
think it well to tell it, even though it may be dull, because it seems
to be so little known. Hoover's situation vis a vis pigs and producers
and packers in those strenu
|