Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-04-03
FARM CREDIT BILL
NOT LIKELY To WIN
COOLIDGE SUPPORT
McNary : Haugen Measure
Provides Pulling Problem
for President Dangerous
PROPOSAL Experts Say
BY DAVID LAWRENCE
Ieased Wire Service to The Journal.)
(Convright. 1920

(Leased Wire Service to The Journal)
Copyright, 1920
WASHINGTON. April 1.-Presi
dent Coolidge has been brought face
to face with the most 1erplexins
piece of legislation of the present
session-the McNary-Haugen bill
Senator Cummins, of Iowa, has ask
ed the president to lend his influence
to movement which has for its
object the passage of the McNary
bill ahead OF tax and bonus legisla
ton.
Mr.. Coolidge's views were not dis.
closed by the Iowa senator when he
left the White House, but it may be
taken for granted that unless the
McNary-Haugen bill is materially
altered, it will not only fail to get
presidential sanction, but may even
be vetoed.
No measure in recent years con.
tains more controversial points, no
measure, indeed, has aroused so
much opposition, and no bill with
It's problems of enforcement have
been presented seriously in the last
ten years. with the possible excep-
ton of the Volstead act.
For to make the McNary-Haugen
bill effective, it's critics insist, an
army as large as, if not larger than,
che prohibition police force will be
necessary.
Agency to Sell Wheat
What does it provide? Hardly
anyone can give a comprehensive
idea of exactly how it will work, but
the avowed object of the legislation
is to make the government act as
the export agency for the sale Of
wheat abroad, using fund of $780,.
100000 as capital and in effect, spec.
ulating with the situation so that
If the export price is high enough
the farmer will get the benefit OF il,
Eut if it isn't the losses will be dis.
tributed among the producers.
Basically, the McNary -Haugen is
objected to because it would intro.
duce into circulation a new form OF
money known as scrip" In actual
practice, the bill would work some
thing like this.
II the prices of all commodities are
cons ldered to have increased a GER
tain per cent over pre-war level,
then that FER cent is used as a means
of arriving at what ought to be the
price of wheat. Thus wheat should
sell at $1.50 for export. The farmers
would be given in payment, however,
not the entire sum but approximate
ly $1.25 in money and twenty-five
cents in scrip. The government would
purchase the crop, supplying the
amount above the domestic market
price out of government funds. If
the crop was sold abroad at a good
figure then the twenty-five cent
>nlfrip would be worth something. II
mot, its value would be correspond.
ingly reduced There is no way by
which farmers could be prevented
from selling their scrip at discount
or at the figure they think it might
bring at the end of the negotiations
conducted seasonally by the govern.
ment. Shopkeepers and others who
had the scrip would not know it's
value. 1t would mean new currency
and the opponents OF the measure
say it would weaken confidence in
all currency, as it would Introduce
elements of initiation into an other
wise sound American currency sys-
tenn.
Unlimited Production
But the principal objection made
to the bill is that it does not provide
for limitation of production. Those
who had charge Of the governments
wheat operations during the war in
sist that fixing the price of wheat
stimulated production. And the more
acreage planted, the greater would
be the governments problem in CIV
ing the farmer his due. For when
ever there is an oversupply, the price
goes down. There is no provision in
the McNary.Haugen bill which would
limit the planting.
The experts who nave examined
the bin say it wouldn't work a sin.
gle day and that it would drive out
of business every wheat exporter
and would completely demoralize the
whole grain business-an experiment
described by one of those who have
talked with the president about it
as probably the greatest humilia.
ton that could come to the Ameri-
can government.
There is another phase OF it which
is exciting the interest of foreign
governments. Should the United
States government do the very thing
it has objected TO in others, namely,
dumping?
Laws have been passed here to
prohibit dumping. IL the United
States government takes over the
export of yheat and acts in monopo-
listic spiriS. the foreign governments
will reta!late. Already there is talk
OF placing a duty on American wheat
eqqivalenl to the amount by which
the American government wheat
agency increases the price for export
Retaliation OF this kind would undo
the work of the proposed grain cor.
poration.
The whole thing means a venture
by the government into private in.
dustry and drives out Of business
those who have been in the export
trade. Price-fiXing has many oppo
nents here, for other reasons, how
ever, because they fear that if the
government is forced to control
wheat it must of necessity enter into
the entire list OF food products AND
begin to regulate their sale and dis
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