The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-07-17

WASHINGTON, July 17.-Ecept
for the operation of the co-opera-
tlves, agriculture will proceed on its
normal way under the new federal
farm relief law until an emergency
arises, such as a threatened surplus
or threatened serious decline in
the market price of certain COM
modify.
The co-operatives will take care
OF the ordinary marketing and
financing of crops. But when trou-
bles as mentioned above threaten,
the sterilization corporation steps
in as the savior, under the law.
Take, for instance, the case Of a
serious decline in the market price
of wheat.
The wheat advisory committee
described in the first article of this
series will then appeal to the farm
hoard for permission to create
sterilization corporation for wheat.
The wheat co-operatives must in
corporate this wheat sterilization
company. Money will be furnished
this new corporation as needed to
buy up the surplus wheat and hold
it for a better market.
See the Emergency
The fact that the farm board with
its $500000,000 has stepped into the
wheat market for the purpose Of
taking over the surplus and of pro-
tecting the producer is considered
sufficient cause for the price of the
commodity remaining firm and the
emergency disappearing.
Snator Arthur Capper, who has
just made a careful analysis Of the
farm act, says: THE success or
failure of the experiment probably
will hinge largely on whether or not
the sterilization corporations oper-
ate successfully"
The co-operatives under the farm
act really run the business, being
supervised and assisted by the fed
eral government.
A distinction in marketing is made
clear in the law. There are ordi-
nary marketing conditions and sur
plus marketing conditions. Loans
for financing the buying up Of
surplus are a lien against surplus
reserves only and not against Or
binary marketing reserves.
In describing the way that wheat
will be handled under the farm act
Senator Capper says:
Organize Corporation
"The farm board will ask the
wheat co-operatives to name an ad-
visory committee of seven, under
regulations to be made by the board.
This committee will advise the or
gan1zation by the co-operatives and
recognition by the board of wheat
sterilization corporation.
This sterilization corporation
will be a central sales agency for
handling wheat. 1t can market for
its members. It can buy wheat from
members or members. Tt will
borrow money-perhaps a hundred
million dollars or so-frona the re-
volYing fund. It can construct or
lease elevators, sell or hold or other
wise dispose of wheat. Tt is expected
to announce its intention of buying
a large amount of wheat. II that
announcement does not bring the
domestic market up to a reasonable
figure, it will buy wheat. 1t can
either market it at home or abroad.
If it sells abroad at a loss, that loss
will come back on the revolving
fund
May Force Wheat Sale.
1.-THE federal board will retain
power to force the sale of the cor
poration's wheat on the domestic
market, if a corner that unduly EN-
hances the prices to the distress of
the consumers is attempted.
1.-THE act promises to help agricuI-
ture; promises to be Of still more
help as weak places may be discov-
cred in the measure and corrected.
It is start in the right direction,
but it must be borne in mind 1t
also is an experiment that depends
on cooperation to succeed"
In 1911 there were only eighty
1.z.1.