San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-05
FARM RELIEF
BILL IS TOPIC
Of DISCUSSION
Administration Officials at
Skies and Sevens Over
Measure.
SAYS 1T WOULD WORK
Department Of Agriculture
Official Explains Work.
ing Of Bill.
BY DAVID LAWRENCE.

Copyright by The San Antonio Light.
Washington, ID. C.. April 5.-Ad.
ministration officials are at skies and
seyens over the McNary-Haugen bill
Which provides machinery for the
purchase of the export wheat crop
The critics are numerous. the attack
on the bill extends all the way from
cries OF unsoundness to the statement
that it will take an army greater
than the prohibition force to police
its operation.
Charles J. Brand. consulting spec
lalist at the Department of Agricul-
ture, who is probably more familiar
with the proposal than any one else
in Washington, today consented to ex-
plain some of the provisions of the
measure.
If people will only read the bill
and examine it carefully" he said,
"they will not find in it on reflection
the imaginary dangers they think
they see. For instance, it has been
said the bill would put the grain ex-
changes and traders out of business.
1t will not. The United States Agri-
cultural Export Association will act
through existing trade bodies and or
CARNATIONS. The corporation is to be
actuarial and not trade body itself.
One thing it may do, j admit. 1t
may reduce the amount of fluctuation
in grain prices due to world rumors,
but the exchanges will always be
influenced by domestic factors and
rumors.
Would Buy Surplus.
"What is proposed in the McNary-
Haugen bill is nothing more nor less
than what the agricultural co-Opera-
tives now are doing. We simply
would buy the exportable surplus of
wheat from the farmer, not out of
government funds. but out of funds
provided by the farmer himself and
when the time for settlement comes
lat the end of the year, the farmer
would get his patronage dividend as
the farm co-operatives call it, in the
form of participation certificates
and legal tender value.
"They will be commercial paper
pure and simple. ! have heard state
nents that the farmers wouldn't ac-
cept these certificates. Let us take
nm actual illustration of how the
bill would work. Suppose farmer
lbs -VVO DlsutlS VI Nutdt ~ stii.
rhe domestic price is 81. The ratio
price of wheat to other commodities
would call for a price of $1.50 n
bushel if things were normal. But in
stead of paying the farmer that
Rmount in cash or $4,000, he would
be paid, for illustration, about 5000.
"The remaining $500 would be
withheld and in its place he would
be given a participation certificate.
Now how would we determine the
value of that certificate at the end
bf the season? We are producing
bout 750,000.O00 bushels of wheat.
pf which 150,000,000 bushels would
be the estimated amount needed for
Export, based on previous years fig
Tres. But in the export market we
would have to sell at a loss, say at
dollar q bushel.
Loss of S75.OOO,OOO.
"This would mean total loss of
bout $75,O00,000. Add to that an
approximate cost of S15,OO0,O00 as
he expense of the corporation,
hough / believe it would be lower
han that, and you have total cost
f S90,000,000. But if out of total
PRODUCTION of 750,000.000 bushels you
withhold Is cents bushel from the
armer for the equalization fund. you
will have on hand about S112.5O0. 900.
subtracting the 800. 100000 of ex-
Iense, it leaves 500 100000 and divid-