Evening star., 1926-12-15
HAUGEN I'1'Ay DROP
I NAME FROM BILL
Partnership With McNary in
Farm Relief Measure
Faces Dissolution.
BY the Associated Press.

BY the Associated fFesS
The famous farm relief partnership
of Ac4>als t.a. 1augen appeared TO-
day to be IN ~ course of dissolution
as the fight over the agricultural
problem waxed warmer in Congress.
Failure of state farm leaders to
ask Chairman A1augen of the House
agriculture committee to introduce
the McNary bill, which was offered
Yesterday in the Senate, gave color
TO the story told by Mr. Haugens as
sociates that he objects to Clilnlna-
ton of certain tariff provisions
which were part of the old McNary-
Haugen surplus control measure. Mr..
Haugen remains silent on the lew
proposal. ,
Meanwhile Representative Purnell.
Republican, Indiana, ana runner
Democrat, South Carolina, VINO were
requested by Senate leaders TO intro
duce the new McNary bill III the
House, are undecided as 10 theil
course, and have indicated they would
make no move until Chairman
Haugen mas explained himself.
Dickinson May Act.
Should they continue to hesitate
Representative Dickinson, Repupli-
can. Iowa. a farm leader, would be
asked % introduce the Dlli
Representative Aswell OF LOUISIANA
ranking Democrat on the agriculture
committee. announced today ne Wouiu
oppose the McNary bill because II
would provide for the collection OF an
eoualization fee on basic farm COM
modities with which to handle the sur
plus problem.
Meanwhile Senator Harrison, Dem
oorat. Mississippi was out with
new agricultural bill today proposing
relief to the farmer through loans
ranging up to $4,000 100000, to be
handled through the Federal inter
mediate credit banks, and w. 1.
Drummond, a member OF the farm
congress which recently met IN Kan
sas City, called on President Coolidge
with still another proposal for meet
ing the situation.
Farm Surplus Board.
Drummond said bill would be in
troduced soon to establish a Federal
farm surplus board, with revolving
fund of $1O0,000000, which it would
loan to cooperative farm organiza-
tions for the purpose of buying sur
pluses in non-perlshable commodities
for storage and disposal.
Denouncing the McNary bill as an
espousal of the principle of protective
tariff. the Mississippi Senator de-
clared the real way to relieve agricul-
ture was by liberaliZing the inter-
mediate credit system to permit any
farmer to borrow money at low inter-
est to hold his crop for better prices.
Under the Harrison bill the capital
stock of the IL intermediate credit
banks would be increased from
$5, 900 900 to $10,0O0.000 each with
authority to make loans up to 10
times it's capital stock.
The interest rate would be fixed at
4 per cent and loans could be made
on IS per cent of the market value
Of the product. The present law re-
Quiring the intermediate banks to
lend only to cooperate organizations
banks to make loans to individuals,
firms and corporations with ware.
house receipts or shipping documents
as security.
All Products Included.
All agricultural products are in
ciuded in the bill, with a particular
provision for cotton. authorizing loans
on all grades. including low grades
that are now barred from loans.
"A great emergency now exists and
every reasonable credit should be ex-
tended by the Government to aid and
assist" Senator Harrison declared in
q statement.
1.-THE purchasing power of the
farmers dollar today is around 65
cents, while that of other industries
fostered by the protective tariff Is
from 81 TO $225. If the present tariff
system should continue that disparity
win continue to widen. Instead of
the South and the agricultural West
wanting to perpetuate it, as is done
in the McNary- -Haugen bill, those of
every section interested in agricul-
ture ought to make a common war
against the system"