Evening star., 1927-10-29
M'NARY TOPRESS
FARM LEGISLATION
Oregon Senator Holds Sur
plus Problem Must Be
&: Solved by Congress.

The farm surplus problem must be
solved and legislation to solve it will
be sought in the coming session of
Congress, Senator McNary OF Ore
gon, chairman of the committee on
agriculture, said today on his return
to Washington from tire West.
Senator McNary is one of the au-
thors of the McNary Haugen bill,
which passed the Senate at the last
session and was vetoed by President
Coolidge. In a formal statement is
sued my Senator McNary today he
indicated he would be satisfied with
any legislation which satisfactorily
tackled the problem OF handling the
surplus crops. He did not mention
specifically in his statement the equal
ization fee of the McNary.Haugen
bill. The equalization fee principle
has been one of the chief stumbling
blocks of that legislation.
Plans to Press Relief.
Senator McNary gave the impress
sion that he would work earnestly for
the passage of farm legislation, at
the coming session. His statement
follows:
Prom advices / have received there
appears to be no appreciable abate-
ment of the agitation for farm relief
legislation since Congress adjourned.
What form this legislation takes is
not important so long as our guide is
the principle that agriculture must be
restored to its former place of equal
ity with industry, transportation and
labor.
"a satisfactory solution of the prob
lem involves the segregation of the
surplus beyond domestic requirements,
its sale abroad, or it's storage from
times Of surplus to times of scarcity.
when there is domestic surplus
OF any product it is elementary eco.
nomic law that the price of the SUR
plus fixes the price of the entire pro-
duction.
Suffered From War.
"From the foundation of the Ma.
ton, this country has produced a
surplus Of basic agricultural commodi.
ties. Before the World War this sit.
uation did not injuriously affect agri-
culture because the world level of
prices was comparable to our own.
Since the war. and as a result there
Of, the markets of the world have been
depressed and demoralized until the
farmers cannot sell their product at
world price levels.
when the farmers are protected
against ruinously competitive prices
due to lower foreign costs of produc.
tion and standards Of living as are in.
dustry and labor, then they will be
made beneficiaries of our system of
production, and not until that is done
will the tariff become effective to
fhnca nronS of vvloioh v,rod,,oz
surplus.
This surplus is so small as COM
pared to the whole crop and the
existence so potent for i'll that no
effort should be spared to find a cor.
rective and apply it legislatively If
found practicable.
Cites Own Measure.
'The measure vetoed during the last
session by President Coolidge under.
took to do this. The export debenture
plan indorsed by the National Grange
undertakes to do the same thing, and
If interpret correctly the statement
of Secretary of Agriculture Jardine,
he would attempt to do the same thing
by loaning large sums of money to
co-operatives to regulate and withhold
the surplus from sale, thereby stabiliz.
ing prices, by preventing violent price
fluctuations.
''It is not likely our country will
always produce a surplus in agricul-
ture products, as eventually popula.
ton will overtake production, in
which event the much coveted Amer.
lean price levels will be available to
the farmers and moreover it is DOS
sible that a more highly developed
system Of cooperation among pro-
ducers will result in reasonable con-
troll Of products and improved facil.
ities for orderly marketing.
Plans Early Action.
"As chairman of the Senate com.
mittee on Agriculture. and Forestry,
will bring this subject matter to the
attention OF the members so soon
as they assemble in Washington and
suggest that the committee consult
members of Congress, farm organi.
cations and administration leaders in
an earnest effort to pass some effec.
tive legislation based upon sound
principles that will restore agriculture
to its former economic conditions"
Senator McNary said that he would
discuss the agriculture program with
members Of the Progressive Republi.
can group now in Washington,
which has had the matter under con.
sideration.