San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-02

make the government act as the ex-
port agency for the sale of wheat
abroad, using fund of 500, 00O, 900
as capital and in effect, specializing
with the situation so that if the ex-
port price is high enough. the farmer
will get the benefit of 1t, but il it
isn't the losses will be distributed
among the producers.
Basically. the McNary- Haugen bill
is objected to because it would intio-
duce into circulation a new form o.
money known as scrip. In. actual
practice, the bill would work some
thing like this: If the prices Of all
commodities are considered to hav,
increased a certain per cent over pre-
war level, then that per 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 ex-
port. The farmers would. be given in
payment, however, not the entire sum
but approximately $1.25 in money
and % cents in scrip.
Would Weaken Money.
The government would purchase the
crop supplying the amount above the
domestic market price out of govern
ment funds. If the crop was sold
abroad at good figure, then the %
cent. scrip would be worth something
If not its value would be correspond.
ingly reduced. There is no way by
which farmers could be prevented
from selling their scrip at a discount
or at the figure they think it might
bring at the end of the negotiations
conducted seasonally by the govern
ment. Shopheepers and others who
had the scrip would not know is
value.
1t would mean a new currency and
| the opponents of the measure say it
would weaken confidence in all cur
rency as it would introduce elements
of initiation in an otherwise sound
American currency SYSTEM ia
| But the principal objection made
to the bill is that it does not provide
for a 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 giving the farmer his due. For
whenever there is an over-supply, the
price goes down. There is no pre-,
vision in the McNary-Haugen BIZ!
which would limit the planting.
Would Not Work.
The experts who have examined the
bill say it wouldn't work single
day and that it would drive out Of
business every wheat exporter and
would completely demoralize the
whole grain business-an experiment
1 4 l. l. nf x.-h ha- ~.
talked with the President about it AZ
probably the greatest. humiliation
| that could come to the American gov
eminent.
| There is another phase of it which
| is exciting the interest of foreign gov
| ernments. Should the United States
government do the very thing it has
| objected to i'm others, namely dump
| ing? Laws have been passed here 10
prohibit dumping. IL the United
/ States government takes over the ex
port of wheat and acts in monopolis
/ tic spirit. the foreign governments
will retaliate. Already there is taif
of placing a duty on American wheat
equivalent to the amount by which
the American government wheat
agency increases the price for export
LIBERALIZATION of this kind would undl
the work Of the proposed grain cor
poration.
Venture Into Private Industry
The whole thing means n venture
by the government into private. in
dustry and drives out of busines!
those who have been in the export
trade. Price fixing has many OPP
lponents here, for other reasons, how
ever, because they fear that il thu
government is forced to control whea
Il must of necessity enter into the en-
tire list Of food products and begin t
regulate their sale and distribution.
Co-operative farm organization!
would be hit by the new Legislation
and the old controversies which aros'
during the war over the prices tina
should be allowed for different grade.
of wheat are expected to develop
again if the bill is passed. Their
are some who have gone so far as t.
saw that the inducement to diversit,
farming would be eliminated am
that the whole, wheat industry woult
be upset while the experiment wal
being undertaken.
| No Chance To Be Passed.
The Department Of Agriculture ha
favored the bill in principle. Presi
dent Coolidge has been examining tn
reports aad opinions of experts 81
both sides. Unfortunately all othe
agricultural legislation has fallen b,
the wayside and the farm bloc want
the McNary- Haugen bill as an evi
dence of having accomplished some
thing this season for the farmer.
Various proposals are being con
sidered whereby the bill may b
amended. The amendment process
will probably lead to such confusion
that the whole scheme will have Il
be reconstructed. The present Me
Nary -Haugen bill, the writer believes
has no chance of becoming law. Sen.
ator Curtis, Kansas, has introduced
bill which provides fog national CO
operative marketing institutions anc
| on his bill may be construed plsr
for agricultural relief. but this will
not materialize until after the debate
on the McNary bill has been con-