Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-23
FARM RELIEF BILL,
WITH HDEBENTURES,
GOES TO SENATE
Formally Reported by MCNary
and Made Unfinished Busi-
ResS at His Request.
DEBATE ON LEGISLATION
is OPENED BY CHAIRMAN
Discussions Continued in House,
With Final Action Expected
by Thursday Night.

The farm reliet bill was formally re-
ported to the Senate today by Chairman
McNary of the Senate committee on
agriculture and at his request made the
unfinished business Of the Senate.
The debate on the bill was begun in
the Senate by Senator McNary. At the
same time, general debate on the farm
bill was continued in the House. That
body hopes to dispose of the measure
by Thursday night.
Lines frightened in the Senate today
for and against the debenture plan of
dealing with crops surpluses, which has
been written into the bill by majority
Of the Senate committee on agriculture,
Notwithstanding the opposition of Pres
ldent Hoover. Support of the position
taken by the President is demanded by
Republican Senate leaders. While a
number of the Republican Senators are
of the reservation" in this tight, it is
predicted that their detection will be
made up IN large part by Democrats
VINO are opposed to the debenture plan
and that in the end the debenture will
fail in the Senate.
Argument Advanced.
An argument advanced by Republican
Senate leaders was to the effect that in-
sjstence on the debenture plan would
prevent the enactment of any farm leg
iSlation, since it was clear that the
Chief Executive would veto a measure
containing the proposal if it came to
him. This argument it is believed. will
prove potent before a vote is finally
taken.
The report submitted by Senator
NGcNary on behalf of the committee
showed the committee to be unanimous
in its agreement on all sections of the
bill except that providing for the de-
benture plan. The committee divided,
8 to 6, III favor of retaining the de-
benture plan in the bill. The report
discussed the provisions Of the bill in
detail and laid down general conclu-
sionS with regard to the farm situation
and the need for aid. 1t declared that
the lack of equal bargaining power
has deprived the farmer of fair price
for his produce. The report lists the
principal elements of weakness in the
farmers bargaining power are as fol-
lows:
"C) Lack of organization. - The
trend of modern industry and COM
merce is distinctly toward large and
powerful units so as to develop bargain
ing power, and, as an aid thereto, TO
effect economies of operation, control,
production and regulate the flow of
commodities into the channels OF trade.
This has given industry and commerce
an excess of bargaining power over ag-
riculture which consists Of numerous
small units.
"(2) Insufficiently developed leader
ship in conducting business on a large
Scale-It should not be inferred from
this that the rural population is in
herently lacking in the capacity for
leadership Nothing could be farther
from the truth. Our history abundantly
proves that the farm population has
furnished its share. probably more than
its share, of the Nations leaders in sci
euce, education. industry. commerce.
finance and government. 1t remains
true, however, that the comparatively
small business units into which farming
is divided do not in themselves afford
the necessary scope for the development
of that leadership which is essential to
greater bargaining power for agricul-
ture. Cooperative effort, which this bill
is designed to encourage, should afford
opportunity for the development and
the exercise of business leadership di-
rectly in the interest of agriculture.
Adjusting Output Difficult.
90 Difficulty of adjusting produc-
ton in agriculture to changing price
1evels-When prices of farm products
fall, the farmers investment can not
be turned to other uses speedily, if at
all, except at great loss. For this and
other reasons it is more difficult in
F-oriPIIlfl1Yp than in Af 0pr ir1EIJctrinc fO
reduce production when prices fall The
farmers large overhead costs-taxes, in
tereSt on the fixed obligations, etc
must be paid even should he attempt
to curtail production. Driven by high
overhead cost he finds it necessary to
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