Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-23
REPORTS
FARM-A|D' BILL
Measure, Containing Deben-
ture Plan, Made Senate's
Unfinished Business.
CONTINUED From First page.)

IuSting its operations to declining prices
is an important element of weakness
in the farmers present position.
90 Dependence on the Foreign Mar
ketS.-Those branches Of American
agriculture-cotton, pork, wheat, etc
which produce in excess of domestic
requirements and which must, therefore,
depend upon the vicissitudes of foreign
markets, are at disadvantage as COM
pared with those parts of agriculture
and those industries which do not pro-
ments and which, by reason of an effec-
tive tariff, are able to enjoy a depend
able buying power of our home market.
While it is true that no tariff sched-
ule guarantees to any producer
whether farmer or manufacturer, q
price equal to the world price plus the
tariff, it is also true that the tariff
affords little protection to an industry
that is highly competitive and which
regularly produces substantial quanti-
ties In excess of domestic requirements.
This condition prevails with respect to
some of the important farm products.
The fact that the tariff serves to ex-
clude foreign products from entering
the domestic market. or at least pre-
vents their importation III substantial
quantities, affords little real protection
unless the tariff also protects the price
In that market.
"(5) Fluctuations in Price Due to
Variations in Yield.--Climatic and other
natural conditions cause wide fiuctua-
lions in total yield and, consequently,
in the price of the product. These
fluctuations In yield are largely beyond
the farmers control and often subject
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THE total value of a crop Is as
rule more stable than the price per
unit. Nevertheless, price fluctuations.
as well as the hazard of partial or
total crop failure on the individual
farms, are an element of weakness in
the farmers position.
THE recent hearings of the commit
tee. as we'll as its earlier hearings and
deliberations, have made 1t increasingly
evident that no single measure will SUI
flee In dealing with all Of those aspects
OF the agriculture problem that may be
dealt with by natural legislation. 1t is
clear, however, that much could be done
to strengthen the economic position OF
agriculture by the enactment Of a
measure designed to minimize price
fluctuations in the marketing Of agri-
culture commodities, especially those
fluctuations which Cd are due to sea-
sonal or years total SURPRISES OF farm
products and SURPRISES In excess of
domestic requirements. or 90 are due
to the lack OF effective associations
under the producers own acontrol
through which they may develop that
unity OF purpose and action which
modern economic life demands.
Machinery Is Varied.
1.-THE machinery afforded by the bill
for minimizing price fluctuations
through controlling SURPRISES and en-
couraging effective organization of pro-
ducers Is varied. For controlling of sur
pluses. the bill provides such preventive
measures as advice to producers In mat
tiers connected with the adjustment of
production and aid in the formation of
clearing house associations AS reme-
dies for minimizing the effects Of sur
pluses, the bill provides for cooperation
in expanding domestic and foreign mar
kets and developing by-products and
new uses for agricultural commodities
loans to sterilization corporations for
The buying and storing Of seasonal or
years total surpluses in excess of the
requirements Of orderly marketing or
beyond domestic requirements; insur--
ance against price decline: and. final-
ly, the issuance OF export debentures
at the option OF the board.
For the effective organization OF pro-
ducers. the bill provides for the encour-
agement of the organization and de-
velopment Of effective cooperative asso-
Citations of producers and for the form
alton of sterilization corporations which
will. in part, serve as central merchan-
~ IL. ,atA 1rn tyafR
modify. The bill also stimulates effec-
tive organization of producers through
loans to cooperative associations and
sterilization corporations for the acqui-
Sition Of facilities and equipment for
preparing, handling, storing. processing
and sale Of agricultural commodities in
order to develop continuity Of co-opera-'
tive services from the point of produc-
ton to and including the point OF termi-
nal marketing services. Again there are
loans to cooperative associations for
working capital and for the co-opera-
tive purchasing Of supplies and equip
ment for use in production. Finally, in
order to strengthen cooperative asSo-
Citations, loans are provided for the pur-
pose of enabling the associations to ad-
vance to their members great share OF
the market price of the commodity de-
livered to the associations that Is prac-
ticable under existing credit facilities.
These organizations aids will establish
farm marketing system producer-owned
and producer controlled from point OF
to the terminal markets, and
one which. being affirmatively author
lied. is exempt from the restrictions OF
the antitrust laws so long as 1t conforms
to the requirements of the bill and pro-
notes the best interests of the country
as a whole"
Farm Board Described.
The Federal Farm Board. which is to
be the heart of the machinery set up
for farm aid, is described in the report
as follows:
Section 2 provides for a Federal
farm board to consist OF IL appointed
members, representing the various Fed
sral land bank districts and the Secre-
tary of Agriculture ex officio. 1t is
desirable that the Secretary
should be member OF TINS board IN
order to give to that body the dement's
If his authoritative position and broad
experience and to insure eflectlve CO.
operation between the board and the
Department of Agriculture in order to
duplication of effort and I'M
necessary expenditures. The President
IS granted broad latitude In selecting
members for the board, subject to the
usual confirmation by the Senate. 1t
s provided that each appointee shall
have demonstrated his capacity and
fitness by a record of success in agri-
cultural activities of such nature as to
rive him special qualifications for his |
iuties as a member of the board It |
S important that the members of the
BOARD should be not only in sympathy |
With the aims OF this act but also men
If fundamental training and experience |
md of demonstrated capacity and fit
ness. as on them rests the responsibility |
Tor successful administration of the act. |
The terms of Office of the appointed
members are six years and are stag |
yered. The salary of each appointed !
is fixed at $4,000 per annum, !