Evening star., 1928-05-23
TEXT OF PRESIDENTS MESSAGE VETOING FARM AID BILL

'lOIINU FARM
! ed by the committee on agriculture of
| the House. Speaking of the effect OF
this provision on wheat, the committee
said:
| Therefore, the maximum price for
all wheat, whether of domestic or for
eign origin. would approximate a level
that included both the tariff and the
equalization fee"
5. Nullify the provision OF the tariff
act that tariff rates shall be based on
differences in cost of production here
and abroad. so far as that provision
relates to agricultural products.
| An effort has been made to create
| the impression that the present bill Is
an important concession to my recon-
mendations for the control OF agrlcul-
tural surplus 1t has been emphasized
that the loan provision is what this
administration has recommended and
that loans to cooperative associations
| for the control of crop surplus consti-
tute one of two alternatives, with the
equalization fee the other alternative.
| 1t is said that the first alternative will
be tried first and that the equalization
| fee will be resorted to only If the loan
porvision should prove inadequate. IL
becomes apparent, however. upon careful
study of the present bill and of the
supporting committee reports that these
alleged alternatives can afford no real
test of any plan OF the kind I have
recommended.
The board Is authorized to invoke the
| trade agreement and the equalization
| fee only upon finding three facts: %
THAT there is or may be during the
| ensuing year a seasonal or years total
surplus in excess of the require
ments for orderly marketing or in excess
of the domestic requirements for the
commodity: t2) THAT the nature OF
| the commodity--its durability. preserv-
ability, methods of marketing, etc
| adapts 1t to the operations contem-
| plated" and 80 that the cooperative
associations are unable or unwilling TO
| handle the surplus under the loan pro-
vision-i e. that the first 'ternative"
is inadequate.
Cannot Escape Findings.
These conditions are always present.
| It Is provided (section 81 that the board
shall inquire into these facts upon re-
quest of the advisory councils, or or
ganization Of producers, or upon its own
motion. The board could not escape
making the three findings" and would
therefore be obliged to enter into trade
! agreements and to use the equalization
fee from the beginning.
A surplus in excess of orderly market
| ing or tthe- word 'and" is not used) in
excess of domestic requirements is al
ways present In many agricultural COM
modities. The expectation Of any part
OF the domestic output proves the ex-
| iStence Of such a surplus.
! The second finding" is equally in
escapable because 1t Is based on ever
| present and obvious facts Numerous
| commodities-cotton. wheat corn, rice,
| tobacco, processed meats, and other
| products--always have the durability,
| preservability. etc, that render sthem
| adaptable to the operations contem-
| plated in this bill
| The third finding" is also assured in
| advance because it is certain that the
| cooperative associations would be both
| unwilling and unable to handle the sur
| plus under the terms of this bill Under
the first alternative (the loan provision)
| the cooperative associations would be
obliged to repay their loans with per
cent interest and pay their losses. If
| any. In the normal course of trade.
| Under the second alternative ttne
| equalization fee planl not only would
/ the board make advances to the as
sociations without interest. but would
also guarantee to pay their losses.
costs and charges" Moreover, the equal
ization fee and the nonpremium IN
/ surance would enable the board TO IN
sure them against decline in the market
| price and against the consequences of
bad management in merchandising
| their products, and to compel all pro-
| ducers OF the ommodity-member ana
| nonmembers--to pay for the insurance.
| These inducements are surely SUFFICIENT
| to insure unwillingnesS of the co-opera-
| tive associations to accept the first al
! tentative.
| Both unwiIiingness and inability OF
| the cooperative associations TO handle
| the surplus under the loan provision
are made doubly certain by the central
| objective of the bill. which Is to initiate
domestic prices and to dump the sur
plus abroad at q loss. These associa-
tions. and every one else who has given
thought Ia the matter, know that this
cannot be done bv loans and that 1t
never was contemplated under the plan
have proposed.
The obiectives OF the type OF legisla-
ton ! have suggested and of this bill
are radically different The two pro-
posals are. therefore, incompatible as
practical alternatives. The object OF
my proposal is TO aid In adjusting pro-
duction 10 handle. to afford farmers a
greater bargaining power 20 handle
surplus due to seasonal and other
causes bevond the control of producers
when unaided by strong business organ
| izations. to minimize price fluctuations.
and TO reduce the margin between the
| price paid by the consumer and the
| price received by the producer.
The real objective of the plan In this
bill Is TO raise domestic prices 10
artificiallv high levels by governmental
price fixing and TO dump the surplus
abroad
Farmers Have Made Progress.
While agriculture has been distressed
in many countries since the World War.
the severity of the agricultural depres-
sion I'm the United States must not be
underestimated. II Is true there has
been an increase IN prices and purchas-
ing power of agricultural products.
Many important farm products have In
creased rapidly in price In recent
months, Nor should we overlook the
| fact that our farmers have made note
worthy progress since 1921 both In the
| purchasing power OF their products and
| In the output per worker in agriculture
| The latter is the result Of improved
methods and equipment, and Is In keep
| ing with the fundamental cause OF
| American prosperity productivity
| per worker. Moreover we should avoid
| the error OF seeking In laws the cause
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