Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-19

in debate on the farm debenture plan
fastened upon the farmers bank rate
of from to IL per cent, while Amer
lean production is only 59 per cent.
We have already noted the excess
which the big banks have dipped from
this pool in spite of the failure of sew
eral thousand country banks. Again
the farm bill without the debenture Of
fers no such equality to agriculture and
with it much less than half.
Buys High; Sells Low.
Congress has enacted tariff laws
which enable the protected manu-
facturer to fix the price of his product
at the factory without foreign compe-
tition and patent laws that enable him
to fix his prices without any competi-
ton, either foreign or domestic. On
the other hand, the farmer produces
little surplus-only about 10 per cent
on an average, which is sold in world
market in competition with all the
world, and the price fixed by that sale.
This price is cabled back to the United
States and fixes his domestic price also.
He is forced to buy what he needs in
the high level of the American market
low levels of the world market. Econo-
mistS have said these tariff laws add
four billion dollars to the price level
of American manufactures, and I do
not doubt the patent laws greatly in
crease this amount. In spite of this,
we find industry and its representatives
opposing a debenture that will only
halfway equalize agriculture with its
own advantages.
Lastly, I will mention the fact that
Congress permits corporations organized
under State laws to come into inter-
state and foreign commerce. They ac-
quire the greatest of the natural re-
sources and are permitted to charge
profits without limit.
AS against all these determinations.
the Republican platform summed up
its promises to the farmers in these
words:
THE Republican party pledges itself
to the development and enactment OF
measures which will place the agri-
cultural interests of America on basis
tries to insure its prosperity and sue
cess"
Pledge Won @. O. P. Votes.
Upon this pledge the Republican
party won the agricultural States in the
election. Congress was then called in
extraordinary session to keep this
pledge. When the party bill appeared.
it substantially provided for nothing but
loans to co-operatives. We had that be-
fore in the War Finance Corporation,
with unlimited funds, and it failed.
We have it now and all the time since
1923 in the intermediate Credit Bank
with provision for $50 millions and it
has utterly failed. When this new bill
with farm board limited in
authority to the failures of the past.
some of US who had fought for the
platform In good faith. regarded it as
gross reputation of the party pledge.
We wanted a board w4th authority to
determine the cost of producing farm
products as is done in every industry.
We wanted it to have sufficient funds
and authority to bid this cost of produc-
ton price to the farmers themselves
for their two billion dollars year ex-
would raise the price to that American
level. We also wanted authority to
hold this surplus and dispose Of it to
the best advantage. We believed there
would be little or no loss. and perhaps
even profit, as Mr.. Hoover had in the
wheat corporation. But If there was
loes we wanted the Government to treat
the farmers as we'll as it did the rail-
roads. the banks and the. shipping in
terests. And We had precedent for all
this. Mr.. Hoover had done it all in the
wheat CORPORATION and tine food admin
istration during and after tha war, and
it had succeeded and given the farmers
the best prosperity in all their history.
We had recited this record with en-
thusiasm in the campaign. and we re-
sented its reputation in the farm bill.
1t was this situation that forced lis
to the debenture plan. The agricul-
tural committee of the Senate submit
ted it to the President. He referred
them to the experts 6f the Agi .cultural
Department. They said it would work,
and the committee then put Il in the
bill by unanimous vote.
Debenture Held Simple Plan.
1t is a simple plan, easy Of admin
without new governmental ma
chinery. The Treasury issues GER
tiflcate of debenture to the exporter of
farm SURPRISES equal to one-half the
tariff rate, and on cotton. which has no
tariff, 2 cents per pound. The Treas
ury will receive these debenture GER
tificateS the same as cash in the pay
ment of all tariff duties. The effect
will be to raise the price Of all farm
products that have an eXportable sur
plus. 1t will not be confined to the
surplus alone, but will have an equal
effect upon the whole domestic market.
The benefit to the farmers will be about
10 times the amount of the debenture.
In other words, If the d"bcnture is
2O0, O0O, 900 the farmers will receive a
benefit of $4,000, 000,0 600. This is less
IAN half of what they are justly en-
titled TO receive.
In spite of this. the interests that
now receive $4,000, 100000 of Govern
ment aid through the protective tariff,
are opposed to this small stipend How
ever, I am proud to say that the labor
leaders have joined the farmers in their
demand, and this question will not be
settled until agriculture does get
equality.
Our whole structure for handling
commodities is built upon orderly mar
keting which implies the ability to get
contract for future supplies on the
part of manufacturers" M. Fort said
Whatever may be thought of futures
trading in commodities" he remarked,
ut is certain that we want trading In
America under some control TO have
some voice In the fixation of prices and
not leaving it entirely to Liverpool or
some foreign point. Otherwise, certainly
our domestic producers. unadvised as to
Worldwide commodity price conditions.
will suffer
Says Treasury Would Pay All.
The adoption O. any such act i'm
mediatelv would destroy ell dealings in
commodities for future delivery and re-
duce the market TO a cesh besis for i'm
mediate delivery in this country" 50.
He gave as another objection to the
plan the levying of protecting duties by
foreign governments on importers in
order TO equalize the bounties paid by
exporters. This, he said, would oper-
ate to wipe out the bounty and leave
thu domestic price unchanged, but cost
the American Treasury the full amount