The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1923-12-06
Proposals for legislation to improve

Proposals for legislation to improve
conditions in the wheat industry will
be at the front during the session of
Congress which is just opening, and
the most discussed among the many
plans to increase wheat prices is the
program advocated by the American
Wheat Growers Associated. This or
ganization is the sales agency for
nine state wheat growers associations,
and brings to the support of its pro-
posal the united strength of the more
than 10000 members of these state
organizations.
The American Wheat Growers As
ISOLATED advocates the creation of an
agricultural export commission con-
sisting of the Secretary of the Treas
ury, the Secretary of Commerce, and
the Secretary of Agriculture, who
would be chairman. The commits
sion would have power to levy a tax
upon all of the saleable wheat pro-
duced in the United States. The
fund thus created would then be ap-
piled as premium on that portion of
the wheat crop which is sold for ex-
port. Inasmuch as the export por-
ton of the crop is less than one
fourth of the total production, the
bushelage tax collected would be in
creased fourfold when applied as a
premium on the export wheat.
Through the addition of this prem
ium to the export price, according to
the American Wheat Growers Asso-
ciated, the domestic price paid for the
three-quarters of the United States
crop which is consumed in this coun-
try would be increased like amount.
The marketing organization declares
that domestic buyers of wheat would
be forced to increase their prices to
compete with the worlds price plus
tine amount of the premium, thus
creating general large increase ov-
er the going international markets.
"Take the present price condition
as an example to see how this plan
would work." said William J. Brown,
president of the American Wheat
Growers Associated, From the pres
ent crop we have approximately
700,000,000 bushels of saleable
wheat-that portion which leaves the
farm. A tax of seven cents bushel,
or $49,000,000 would be assessed
against this amount of grain. Then
the fund would be applied as a prem
ium to the available price which
could be secured for the portion
which we export, approximately 170,-
100000 bushels. This would add
about 80 cents bushel to the price
received for the export wheat.
"The result would be that the
amount thus added to the export
price would also place the domestic
price 80 cents a bushel above the
present worlds level The enhanced
price for export wheat would have
to be met by those desiring to pur-
chase domestic wheat. The returns
to the farmer, then, would be 80
cents bushel above the price he is
now receiving, and from this would
have to be deducted the seven-cent
tax, leaving him a net gain of 23
cents bushel through the operation
of the export commission.
ssIh considering this plan it must
be understood that because of the
fact that we have considerable sur
plus to dispose of on worlds markets,
our domestic prices are definitely
limited by those obtaining outside the
country. American wheat growers
are not able to increase the world
level of prices, so this plan in real
ity amounts to the arbitrary addition
of about 80 cents a bushel to the
Liverpool wheat prices. Our do
mestic prices, of course, would then
increase corresponding amount. /"
The tax, according to the plan of
the marketing organization, would
be collected by the government
through railroad channels and
through certified mill reports on
wheat delivered directly to mills by
farmers. Export premiums would
be applied on an equitable basis on
flour milled in this country from
United States wheat and then export
ed.
The tax and premium would be
subject to revision by the commits
sion from yeaer to year depending
upon the probable amount of the
surplus and the worlds price range,
but always so fixed that the actual
return to the farmers would be main
tanned at point equal in purchasing
power per bushel of wheat to the
pre-war value Of the commodity. The
present tariff would be increased to
at least so cents a bushel to protect
domestic markets from the influx of
foreign-grown wheat.
Mr.. Brown meets the argument
that such an increase in price would
result in greatly increased production
by the statement that the collection
of the tax would be an ever present
argument to all farmers of the evil
of growing an excessive surplus.
1'It is obvious that the greater the
exportable surplus in proportion to
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