Evening star., 1926-06-15

to be paid in the first instance out o.
the fund appropriated from the Treas
ury. 1t Is proposed to reimburse thu
/ fund by n fee equalization fee) OF
| tax on all of these commodities solo
! by the farmer.
In other words. il is hoped TO raise
prices on part of the crop by taking
a loss on a smaller part Of 1t: and the
method by which this is to be done II
TO divide the crop into two parts
| the larger to he sold to American con
sumers at high prices and the smaller
part to be sold abroad to foreign con
| sumers at cheaper prices or even be
! low the cost of production. The loss
| incurred in giving this advantage &c
foreign consumers Is to be covered by
money from the Treasury and from
the higher prices paid by American
consumers.
1t is. Of course, apps "ent at once that
the effect Of the bill will be to in.
| crease the cost Of living TO every con.
| sumner of the five basic agricultural
commodities in this country. The
equalization fee. while il purports to
be paid by the farmer. will be includ
ed in the increa sed price Of the com.
modify. and will. in the end, be born
not by the farmer but by the con.
sumner. The net result will he that
the American consumer will nav the
increased domestic price which of ne.
cesaity must include the equalization
fee or the loss incurred in selling the
surplus abroad.
Effect Of Plan Analysed.
I'VE shall have the unusual spec
tacle OF the American consuming pub,
n -tTNos hnS H. H.
five major agricultural complodities
with resulting decrease in the pur.
chasing power of wages. and at the
same time contributing q subsidy TO
the foreign consumers. who under the
PROPOSED plan will secure American
commodities al prices below the Amer.
lean level. European labor could pur-
chase American products at lower
price and could live more cheaply thar
American labor. Foreign industrial
costs would be lowered and the for
eiSn competitor assisted in undersell
ing American products abroad and in
our home market. I can see no per-
manent relief for American agricul.
ture through substituting foreign com.
petition. and that. in my opinion. Is
what the bill, If ii becomes a law, will
do.
The so-cailed equalization tee is
In reality teN on every bushel OF
wheat or corn or head Of live stock or
bale Of cotton sold by the farmer in
this country. and the amount Of the
tax is 10 be fixed. levied and collected
by the proposed farm board. The con
stitutionality of such a tax, fixed not
by the Congress but by a board. i'm.
posed in such a manner and for such
a purpose, Is at least extremely doubt
ful and might render Intellectual any
legislation embracing such q feature
But in anv event there would seem
to be insupera bic difficulties in col.
lecting sucn tax.
''rhe bill provides that the board
may require every person engaged in
processing or in DurCha sing any Of the
Ave basic commodities to file returns
under oath and to report, in respect
of his processing or purchasing Of
such commodity. the amount of equal
liza ton fees pa ayable thereon and such
other facts as may be- necessary for
the payment or collection of the equal
jzation fees: 10 collect the equalization
fee from the producer and TO account
therefor, ana TO issue 10 the producer
a serial receipt for the commodity
Every per son who fails 10 account for
such Equalization fe' shall he liable
Cor such fee and TO d penalty of one
half the amount of such fee.
Calls Plan Complicated.
'it is necessary only to remember
he multitude of transactions which
take place each year in the sale of cot
ION, corn, wheat. cattle and swine 10
realize how vast would be the ma
necessary for the auditing Of
such returns. the collection from the
farmer Of such q. tax and for it's trans.
mission 10 the equalization funds in
the hands OF the Farm Board. The
ntrica cies Of the income tax and pro.
oibition enforcement appear simple by
.
What would be the net result OF all
his effort? In the end the farmer
night receive. If the plan worked SUD
essfully. a small increase in the price
If his commodities. But in order to
accomplish this result the bill sets up
/ cumbersome machinery. involving
lot only the fixing of prices by the
farm Board but a control on their
,art over the agricultural industry
md A power ,ine levYing taxes never
,efore given to any board or agency
# the Government in this country.
The bifl imposes upon the Farm
soard the responsibility for determin
ne what is a fair and reasonable
,rjce for the five basic commodities
nd their food products. 1t is provided
hal. in contracting with co.operatives
n corporations or other dealers in
hese commodities. no 'paymenr of
------------