Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-17
NEW FARM RELIEF
PLAN IS considered
BY ADMINISTRATION
BY DAVID LAWRENCE
Special Leased Wire to The Journal)
lEnnt.riwht 1901 J

Especial Leased Wire to The Journal)
Copyright. 1920
WASHINGTON, May 16.-Presi-
cent Coolidge and his cabinet are
considering a new plan for agricul-
tural relief, proposed by the Inter
national Farm Congress and sug-
gested by w. 1. Drummond, chair
man of its board Of governors. 1t
may prove q substitute for the Nc
NaryHaugen bill.
Although it is not politics for them
to say so at this time, some of the
proponents of the McNary-Haugeu
bill are ready to accept the new
plan. Informally, some members of
the administration have approved it.
For, briefly, it invOlVes no excess
sive government appropriations, no
marketing machinery of a govern
mental kind, no interference by the
government in private business, no
requirement to merchandise any por
ton of farm products or any dis
turbance of existing channels of
trade.
But it does involve the use of the
principle of the protective tariff.
Here are the essential points In the
scheme:
whenever the president finds
there is a surplus for export Of
principal agricultural or livestock
product, together with a world price
basis of such a product so low as
to cause distress to American pro-
ducers thereof by reason of the price
received for the exporta5le portion
mestic price, he shall declare an
emergency IN respect to the product
concerned
Equalization Fee
Whenever an emergency has been
so declared, an export equalization
fee shall be paid upon such portion
of the product concerned as is eX-
ported. Such fee shall be approx
mately equivalent to the tariff up
on imports into the United States
of the product concerned, per unit
! of such product, less a sufficient
percentage to prevent excessive i'm
| ports.
AN excise tax shall be levied upon
all Of the product concerned which
is sold during the emergency period.
The excise tax shall be calculated to
(
the export equalization fee as nearly
as may be estimated, together with
| all expenses of operating the plan.
can emergency export corporation
shall be created. Its directors shall
consist of the secretary of agricul-
ture, the secretary of commerce, the
| secretary Of labor, the secretary of
the treasury and one other, appoint
ed by the president and confirmed by
| the senate. The director so appoint
ed shall be chairman and managine
director. The corporation shall have
no capital stock. 1t shall be en-
powered to levy and collect the eX-
else tax, pay the equalization fee and
conduct all other business in connec-
ton Herewith"
! In order to operate While getting
! under way, the corporation would be
| authorized to borrow not to exceed
| IS 900, 600. Also it would be empoW-
cred to borrow as against future tax
collections in case they did not ar
rive in sufficient volume at times to
meet administration expenses, but
! the borrowing would be done in the
open market, certificates of indebt-
edness being issued the same as in
any other business. They would bear
| interest at current rates, and be pay
able on or before the close of the
emergency period.
Producer Would Pay
! The excise tax would be collected
either in the form of certificates or
the levying of stamp taxes on each
| barrel or sack of flour, or they would
be attached to exporters bills of lad
| ing. In the case of animal products,
it has been suggested that they be
taxed at the packing plant. Reeard-
! less of where it is paid. it would be
! charged back to and be paid by the
| producer or grower
An illustration worked out by Mr.
! Drummond is as follows:
/ domestic price of wheat is based
on world price which is S1.10. The
tariff is about a. cents. The CrOr
is about 100 100000 bushels above
seed requirements. The eXportable
surplus is 100000.O00 bushels Levy
an excise tax of cents per bushe
on 700, 900 900 bushels. and it would
yield a revenue of $42 900 900. Their
an export equaliza ton fee of 4C
cents would be paid at the port Of
export, amounting to about $4,000,
600. leaving about $4,000, 600 to cover
| expenses or to be rebated to those
upon WHOM Il ldN ldu DeeI lev leu
The result would be that the do
nestle price would be 81 less 6 cents
excise tax plus 40 cents import fee
or a total of 1874 as the final price
OF wheat. L desired, a higher OIL
lower scale could be used. Illustra
ton: Pay an export fee of GO cents
a busheI. This would require an eX
else tax of Sc cents and the result
in a net income of 51.4 cents pei
bushel."
The international farm congress
is one of the conservative farm bod
les and is opposed to government en-
! try into private business or price
fixing. The foregoing plan is held
10 be neither. but a simple applica
ton of the method by which domes
tic prices are protected by the tar
if in other commodities. If the Nc
Nary-Haugen bill is beaten. as seem:
likely, this plan will be seized upor
as a substitute. but it has the meri
of involving no expense to the gov
eminent which may commend it L
the administration.