The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-02-25
KILLS HOPE OF
GENERAL FARM
LEGISLATION
Bill Amounts to DiScrimina.
tory Price Fixing, Presi.
dent Says in Message
FINDS MANY DIRECTIONS
Plan Economically Unsound,
He Says-UnconstitutiOn.
al on Several Counts
FINDS MANY OBJECTIONS

al on Several Counts
Washington. FEB. 25.-lP-The
McNary- -Haugen farm relief bill was
vetoed today by President Coolidge.
killing the last hope of general farm
Legislation at this session Of congress.
The president found the bill OBJ
jectionable for many reasons and he
attached to his veto message an
opinion that the measure was uncon-
stitutiOnal on several counts.
1t was asserted BY the chief execu-
tive that the bills equalization fee or
cotton. corn. wheat. rice. hogs, and
tobacco amounted to discriminatory
price fixing, and was IAN economic
/! fallacy" which would not benefit the
1 farmer. but would raise the cost ~
living and operate to the injury Of
the general welfare. He objecteu al
| SO to the powers to be given the pro-
| posed farm board under the bill, as
serting that without appeal the board
! could set unreasonable prices, with a
legal sanction that would preclude
/ prosecution under the antitrust laws.
He added that the administrative
features Of the plan alone were
enough to wreck it.
Economically UnsOund
! The message declared the bill econ
omically unsound since it would he
unlikely that surpluses could always
be exported.
| Increased production on the one
hand, coupled with, decreased domes-
tic consumption on the other, would
mean an increased eXpOrtable SUR
plus to be dumped on the world mar
ket." said the president. "This in
turn would mean constantly de.
creasing world price until the point
was reached where the world price
was sufficiently low SO that, even
though increased by our tariff duties
commodities would flow into this
country in large quantities"
Furthermore the president objected
to the power ~iven to the fedora
farm bureau under the measure.
"The law fixes no standards, i'm
poses no restrictions and requires III
, regulation of any kind" he said.
He declared also that members Of
the board would be under constant
pressure from their constituents Il
push prices as high as possible
"To expect moderation under these
L
ience," he said, "and credit human
|, mature with qualities it does no
possess"
Pointing out that the department
Of justice had been employed il
breaking up combinations aimed a
raising the cost of living, the mess
age continues:
No Restraint on Board
This bill, if it accomplishes it
purpose, will raise the price of tn,
specified agricultural commodities 4
the highest possible point and in do
ing so the board will operate with
out any restraint imposed by til
antitrust laws. The granting o
any such power to governmen
board is to run counter to our tra
ditions, the philosophy of our gov
ernmcnt, the spirit of our institu
tions. and all principles of equity.
"Thc administration difficultie
involved are sufficient to wreck tn
plan"
The president said that he had de
clined to approve the bill becaus
"thc measure discrimina definite
.. ly against products which make u
y !, what has been universally considere
!, a program of safe farming"
"The bill singles out a few prod
/. . ucts. chiefly sectional" he said, IAN
: proposes to raise the prices of thos
y regardless of the fact that thousand
: Of other farmers would be directl
penalized."
: Would Not Benefit Farmer
o "The chief objection Of the bill
= that it would not benefit the farm
err" the president continued. "Wha'
j. ever may be the temporary inflt
i ence of arbitrary interference, n
( one can deny that in the long ru
;. prices will be governed by the Ia
Il of supply and demand. To expel
n to increase prices and then to maii
tain them on higher level by near
g Of plan which must of necessit
% increase production while decreasin
= consumption, is to fly in the face I
:. an economic law as well establishe
!. as any law Of nature. Experient
- - shows that high prices in any give
;. year mean greater acreage the ne.
:. year.
s Mr.. Coolidge declared the bi
!" clearly involved governmental fixir
Of prices. 1T gives the propose
v federal board almost unlimited al
l. thority to fix prices on the desi!
y mated commodities" he said. Not
! iuk - HuOiC CCIGabu CU0U tuAC Sut
t price fixing would upset the norm
o. exchange relationship existing
'e the open market and that it wou
m finally have to be extended to GOV
multitude Of other goods and ser
ices. Government fixing, on
started, has alike no justice and !
end.
An Economic Folly"
ut is an economic folly fro
n which this country has every rig
- to be spared"
The message furthermore object
= to "the remarkable delegation Of &
r. taxing power" Of congress to the fe
vi eral farm bureau nominated
lis farmers" which would be establis
n ed under the bill.
BY "This so-called equalization fee
not tax Cor purposes Of revenue
pt. the accepted sense" said the pr
L. ident. 1t Is a tax for the spec
X. benefit Of particular groups. A
r. direct tax on certain Of the VII
ct necessities Of life it represents /
inn most vicious form Of taxation.
be real effect is an employment Of
coercive powers Of government to 4
ey end that certain special groups
he farmers and processors may pro
w. temporarily at the expense of 9th
Of farmers and Of the community
! large"