The New York herald., 1921-03-19
AID TO FARMERS
DECIDED UPON AT
CABINET MEETING
Crisis In Agriculture Due to
Slump in Prices Causes
Harding to Act.
TARIFF MOST LIKELY
Measure Similar to Fordney
Bill Probably Will Be
Given First Place.
EMBARGO rs POSSIBLE
Flood Of Imports Makes Home
Comnatiti0u Tmnnccihlo With
TARIFF MOST LIKELY
EMBARGO Is POSSIBLE
Flood of Imports Makes Home
Competition Impossible With
Present Freight Rates.
spectaI Despatch to TIE NEW YORK HERALD.
New York Herald Bureau,
WashangfOn, ID. Ca, March IS.


New York Herald Bureau,
Washington, ID. O., March is. J
President Harding and the Cabinet
decided at a long session to-day that
governmental aid must be extended at
the earliest opportunity to the agri-
cultural industry OF the United States
IL its serious collapse is to be pre-
vented. Virtually the entire discus
sion revolved around the crisis that
has followed the long continued slump
in the prices Of farm products, due in
large measure to heavy imports of
these commodities from foreign coun-
tries.
The precise form the Government
relief will take will remain to be
worked out in early conferences be-
tween President Harding and Congress
sional leaders, but It seemed tonight
that the probable course, so far as the
executive branch is concerned, would
be to urge the adoption of an emer-
geacy tariff law along the lines of that
vetoed by Mr.. Wilson just before he
retired as President.
At the close OF the Cabinet meeting
to-day Mr. Harding in emphasizing the
agricultural interests. particularly In the
middle and far West expressed the re-
gret that the previous Administration
had not approved the relief provided by
Congress.
Tariff May Come First.
It seemed therefore that II such an
emergency tariff bill is decided on
it would come UP for immediate con-
sideration at the extraordinary session
of Congress beginning April IL. Such a
course unquestionably would clarity the
present problem of whether the tariff
or tax revision should come up first.
The programme then would be the emcr-
gency tariff first, tax revision second
and a permanent, scientific tariff pre-
pared after full consideration, as the
last step.
Mr.. Harding in discussing the Cabi-
net session after II ended made clear
his view that immediate action of some
sort Is necessary to prevent the serious
collapse of the agricultural industry. IL
has been suggested that he might use
his executive authority to place en-
bargoes on foreign shipments. but he
made II plain that this would be done
only as last resort. Such authority
is provided In the trading with the en-
emy act part OF the war powers of the
President, but as a matter OF general
policy II is not the purpose of Mr.. Har-
ding to resort to that Such relief as
Is provided probably will have to come
from Congress.
The revived consideration Of the emer-
gency tariff legislation upset the calcu-
lations Of those members OF the Senate
and House who had regarded II as q
dead issue in view of Mr.. Wilson's veto
and the agitation against such a meas
ure in some quarters. The opposition
TO the bill has been on the ground thai
such a tariff schedule would be used
merely to increase prices TO consumers,
that the farmers would not benefit and
that the situation was abnormal In that
the rate of foreign exchange and not
the regular channels OF trade influenced
the heavy imports.
Wool Industry Mennced.
In the general discussion at the Cabi-
net meeting as indicated by Mr.. Har-
ding the question Of transportation was
considered. This to a considerable ex-
tent Is responsible for the present