New Britain herald., 1928-06-16
I claim.


 upon the idea Of sesregating the ex- portable surplus Of any given crop. storing a small portion of it. and selling the remainder abroad at the world market price.
 The world market price, Of course. would be lower than the American price. so that ,hc sale Of the surplus aboard would result in loss com- pared with the American price. This loss. according to the plan. would be assessed back on all the producers of the crop. All grains. including cot ton. would come under the plan.
 In a general way here is how it would work out If the American price of wheat is ss a bushel and the world price S1.eo. there would be a difference of 80 cents which would be divided among American produc- CTS. The net price yield. therefore. would be something less than $2 a bushel.
 But without the plan in force wheat in the American market would sell at the world market figure, as it practically does now. In this event the American farmer gets $1.eo a bushel instead of something less than ss. (The figures. of course. are talk en merely for purposes Of ilustra- ton, not reflccting actual present prices).
 To arrange for the collection of the equalization fee would require a col lection machinery covering the en- tire country. which the farmers say could be operated through the farm organizations or cooperative associ- ations. The establishment of an American price, higher than the world price, would require the serv- ices Of a federal board which the farmers say would have powers as great as the Federal Reserve board: and they add their industry is en- titled to such supervision.
 The effect of the equalization plan would be that American consumers would pay much higher rate for grains than the foreigners buying American products. Of course, the surplus of grain exported does not even remotely compare with the quantity used for domestic consump- ton, the tendency for years having been to export less and consume more. This would. prevent the equalization assessments from being too heavy compared with the Amer ican price.
 Under the plan, it must be noted, the farmers would not obtain the full American price, but this price minus the equalization fee. But this figure, it is held would be considerably higher than what the farmers get under the present system Of de- pending upon the world price for wheat or other grains.
 Farmers say the dumping Of the surplus into foreign markets at a lower price than that received in the American market is exactly what the high tariff on manufactured goods enables industry to accomplish. In other words, they would operate agriculture on the same plan. But there is no equalization fee in the tariff law: the fact that manufactur- cd goods can be sold abroad cheaper than at home comes about as a natural concomitant to such a law. This is due to the fact that without a tariff manufactured goods could be imported in large quantities, while in agriculture foreign grains are not imported.
 The Coolidge administration holds that the equalization fee is putting the government into business Of 6 most obnoxious nature, and that the government would be setting the price at which farm products would be sold in the United States. Presi. dent Coolidge criticized it in detail in his last veto of the McNary. Haugen bill, utilizing a large mum. Der of forceful adjeclives to describe his contempt for the farmers scheme The President said that col. lecting the equalization fee would re. qulre swarm of collectors which would b. as numerous as filling sta. tionN.
 
 "KIIL.INGs" GOOD TUNES
 Leave 1t 10 the adio to knock the