The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-05-10
THRILLING WITH FARM RELIEF

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The action Of the senate in voting the debenture plan
Of farm relief was palpably that much political play.
Some there are among the wearers Of the toga who be-
lieve in it, but in view Of the stand taken against the
plan by President Hoover, the majority of those who
supported the idea knew that they were backing a plan
doomed to veto were it to go through. Besides, the house
had refused to consider it.
This afforded an excellent situation to make a political
gesture. So the senate went back to its old methods OF
playing the game and put through a plan vetoed in ad-
vance and which, If persisted in. means that there will be
no start on farm relief. What was intended to be an
attempt at a great constructive policy toward the basic
industry of the country is threatened with sacrifice at
the outset, because senators have discovered they can
trifle with the biggest economic interest Of the nation to
delude guls.
AS the situation was forming it would seem to have
been the wiser course to formulate a farm relief accept
able to the president, who made himself answerable to
the people for such a policy in his campaign pledges.
Such a policy. embodied in the house bill, would have
the chance Of becoming law. Thus a start would be
made. So far as the Hoover plan, once in operation.
might reveal defects and imperative details, it could be
modified from time to time and thus be made effective
as far as its merits would permit.
It is not probable that the house will yield to the SEN
ate and accept the debenture plan. However. its pres
ence in the senate measure provides leverage for trad
ing concessions In the conference committee of the two
houses. This forms the second line trenches Of the sem
ate politicians to discredit the president and gold-brick
the favor OF the grange interests backing the debenture
plan.
Though the senate sugar-coated its debenture scheme
with the proviso that its operation should be optional
will, the farm board to be created in the same measure
it is not conceivable that President Hoover would trifle
with his conception Of the plan 50 far as reluctantly to
accept it. In his recent broadside against the proposal
he charged that the export d~ebentures would provide q
$500 {. 900 a year direct subsidy would be a gigantic
gift" to spectators. without a cent return to the farmer
would cause overproduction; would be resorted to by the
farm board because the tendency Of all boards IS tc
use the whole of their authority would produce
manipulation in the export market: would necessitate
further tariff revision; would invite foreign retaliation;
would put u. S. livestock men at a disadvantage by rails
ing U. s. feed prices; would increase federal taxes
The purposes of the debenture plan are obvious at
tempt to encourage agricultural exporting, thus reducing
the domestic surplus; and to equalize the benefits Of the
tariff. Under the senate plan. commodity exporters
would be given q bounty equal to one-half the tariff
on the commodity, not in cash. which would be an ire
fOeble subsidy. but in script certificates disable only II
payment of u. 8. duties on imports. The exporter then
II he was not himself an importer, would have to sell his
debentures to an importer who could use them. At the
present wheat tariff rate, a wheat exporter would gel
81 cents bounty per bushel. Tariff revenues would bt
reduced In proportion as these certificates were presented
In payment Of tariff duties on any and all kinds o.
merchandise imports.