Evening star., 1927-11-13

Senator McNary meanwhile still insists that
losses by the "stablzation corporations of the
Jardne or Business Mems" plans will be dis
tinctly possible and that frankness would de-
mand that clear statement be made that such
losses would become a moral obligation of the
Government.
1t is this writer's deduction from the cir.
cumstances thus disclosed tina: when Senator
McNary and Secretary of Agriculture Jardne
have come to agreement on the subject of
the financing of the possible losses of the
'stabilization corporations" the farm relief
train will be ready to pull out of the depot
on its final run to congressional passage and
presidential approval.
X X X n
In exclusive interview with this writer
yesterday, Senator McNary made the follow.
ing statement commenting the report of
the Business Mems Commission on Agriculture
and outlining the present status of the world
farm-relief legislative development:
II am in accord with many of the sugges-
tions offered and deductions made by the illumi-
mating report of the Business Mems Commits.
sion on Agriculture. Especially am 1 pleased
with the frank and truthful statement that
there must be equalization of the benefits
OF the protective tariff system between agricul.
ture and the manufacturing industry.
This declaration makes the problem Of
agricultural relief more susceptible of solution
from national and economical viewpoint. The
intimaton gathered from reading the report
is that gradual reduction Of the tariff rates
downward would decrease the cost Of production
to the producers of farm commodities thereby
placing the farmers in a position of equality
with industry. This desirable thing has been
foremost in the minds Of the advocates of the
McNary Haugen bill, but they argue the present
economic structure should not be challenged or
or changed and that agriculture should be pro.
tected to the full extent Of industry not to
tear down our economic structure but to make
nvV1n 1nI4 %4 xI~z4l~ At.~-
ture or till.
THE commission suggests that a Federal
Farm Board be appointed to aid in the stabili.
zation Of prices and production of agricultural
products. That is fine. That is the thought ex.
pressed in the bill passed by the last session
OF Congress and vetoed by the President. That
Is the purpose Of the export debenture plan in.
dorsed by the National Grange. The Secretary
OF Agriculture 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 attempting rtabilization Of
prices by preventing violent price fluctuations.
But If stabilization can only be attained by the
segregation of the surplus beyond domestic
requirements and its sale aboard, or its storage
from times of surplus to times of scarcity and
losses ensuing, what agency is to be desig-
mated or created to absorb those losses?
The vetoed bill levied an equalization
fee upon all those benefited by the higher
prices. The National Grange by the export
febenture plan would make up the losses by
Federal funds. The commission evidently be.
lieves that the depressing effect of a surplus
could be removed through the organization of
stablization corporations authorized by the
Federal Government
In my opinion there is sympathetic par.
allel between the findings of the Business Mems
Commission on Agriculture and the effort of
the farm leaders to arrive at proper and prac.
ticaf solution Of the farm problem and Il feei
certain that the work of the commission has
not been in vain and will be helpful to Con.
gress In studying all the angles of the prob.
lem"