The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-08-08

Of its original force Let US consider it in its orig
inal form
1t is a proposal to make the now purely formal
tariff on American wheat really effective; in short
to give the farmer some actual benefit from the tariff
Even those who are opposed to the tariff probably
will agree that so long we have high tariff che
farmer should derive benefit from it, Today ne
is solely victim getting no tariff advantages from
his wheat sales and having to pay higher costs on
most goods he consumes.
What are the essentials of the Moline plan, boiled
down to the lowest terms? Unlike the McNary-
Haugen BILL it is limited to wheat sales exclusively
Today the price Of American wheat is fixed by COM
petition in the world market at Liverpool. This is
due to the fact that produce about Is per cent
more wheat than can be absorbed by American con-
sumers.
This must be sold in the world market This fact
reduces the price of all American wheat to the COM
petitive world price and nulifies the effect of the
tariff of about 40 cents bushel on American wheat
What do the authors of the Moline plan propose9
They suggest that financial corporation buy
the surplus wheat e., any wheat which the regular
market will not absorb at the world price plus the
Accent tariff To state it in practical terms, this
CORPORATION would buy wheat wtsneve it is offered
in the market for less than the world price from
day to day, plus the tariff of 20 cents.
This would make the tariff on wheat really opera
tive with the American farmer. He could sell his
wheat for approximately $140 instead Of 81, if we
assume the world price to be 81. This corporation
which buys the surplus wheat for approximately
81 40 a bushel then would sell it in the world mar
ket for 81.
This obviously means loss of 40 cents bushel
to the corporation on the surplus bought and sold.
But this is about 80 per cent better for the farmer
than selling the whole American wheat crop at 81 a
bushel Further, the loss under the plan would be
assessed against the proper parties, namely, those
who benefit by the increase in the price Of wheat
The Moline plan proposes that this loss sustained
in disposing of the surplus wheat crop be assessed
against the farmers in the form of a sale tax on
all wheat sold. No wheat could be moved to market
unless the sales tax previously had been paid. This
tax on the farmers would be used to finance the
poration It's assessment and collection is the sole
part of the government in the plan.
This sales tax not only would be equitable
method of handling the loss involved in dispoSing of
the surplus crop, but also would be the only really
effective method of checking the overproduction of
wheat in this country. The larger the surplus crop
the higher the sales tax This would bring the pen
atty of overproduction home to the farmer in Ian
guage he could understand
on overproduction is the empty verbal exhortation
of public authorities which has no effect whatever
the millions of individual farmers. The sales tax
would come home to every last one of them. If they
kept their production down to the point where there
was no surplus there would be no sales tax
A fundamental advantage of the Moline plan is its
simple principle and machinery. The government
would be put to ultimate expense, for all cost of
administration could be included in the sales tax.
While giving the farmer the benefit of the wheat
tariff it also throws him the expense of executing
the scheme. The government does not enter directly
into the buying scheme.
There those who object to the plan, on the
ground that the higher price of wheat paid to the
American farmer will increase living costs in our
country. But the authors of the Moline plan an
that this objection can be raised against every
aspect of the tariff.
Why should the farmer be the only one to be
penalized to reduce living costs? Either give him
free trade and let him both buy and sell at the world
competitive market, or else let him profit like other
classes in the special privileges of the tariff system