Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-29
Farm Boards Large Holdings
Present PerpIexing Prob
lem for Executive.
TESS AND WATSON HIT
REEDS ABOLITION PLAN
Republican Committee Chairman.
ship and Vice Presidential Cues
ton Also Brought to Fore.
BY @. GOULD IINCoLN.

By q. GOULD LINCOLN.
President Hoover returns to Washing
ton tonight with problems Of both gov
ernmental and party policy facing him
for consideration.
Outstanding Is the wheat situation,
brought to the front by the announce
ment OF the Federal Farm Board that it
does not intend TO buy wheat Of the
1881 crop. Just what the board win do
with the 10000, 900 bushels Of wheat it
purchased during the last year Is the
burning question, question that the
President viii have to consider seriously.
There Is also the question Of the def
cit which is staring the Treasury in the
face, amounting to some $700, 900, 900.
The demand Is made from Progressive"
quarters that the Federal taxes on in
comes be increased.
Reed Urges Board Abolition.
The wheat white elephant" now held
by the Farm Board, stirred Senator
David A. Reed Of Pennsylvania to de-
clare that the Farm Board should be
abolished
This drew the FIRE Of Republican sem
ators from the agricultural States last
night, including Senator McNary OF
Oregon, chairman of the Senate Com
mittee on Agriculture, and Senator's
FeSs OF Ohio and Watson OF Indiana.
None of these Senator's feel that the
Farm Board should be abolished. The
Progressiyes, among them Norris, Borah
and Nye, are inclined to laugh up their
sleeves at the predicament in which
the Farm Board finds itself along with
the administration whose child the
Farm Board Is
G. G. league, vice chairman Of the
Federal Farm Board, took ofiicial cog
nizance OF the demand for the abolish
ment Of the board by Senator Reed.
league Issues Statement.
Mr.. leagues statement was, in part.
as follows:
Senator Reed was quoted in the
newspapers are saying: Our deficit this
year win be about $750. 100000. Prac-
tically all Of this comes from the money
lost through the Farm Beard and the
money loaned to veterans not Ia as
tress'
ut is probably, true that the differ
ence between the total amount Of money
the Government appropriates for al
purposes and the income from all
sources Is figured as q deficit. It seems
to me, however, that money could not
be counted as lost that has been appro-
priated as q revolving fund to be loaned
to farmers co-opeTatives under the pro-
visions Of the agricultural marketing
act,
Mr.. league said that Congress had
authorized $500, 900 900 revolving fund
to be administered by the Farm Board.
OF this, he said up to March 81, e400,-
0O0, 900 had been deposited with the
Treasury to the credit Of the revolving
- Vuf1
be available until July /. He said that
very few loans are made from the re-
volving fund that are not secured by
facilities or commodities.
No Losses So Far.
''None Of this money" said Mr..
league. "can be counted as lost unless
the collateral Is not realized upon, or
notes representing q part of the loan
from the revolving fund are not COLI
lectible. So far there have been no
losses from these secured loans. It Is
certain that a large part, If not all, Of
the money of this loan VIII be returned
to the Treasury. At the close Of brsi-
ness March 81. the loans aggregated
$462, 233 1926. OF this amount $l73 49,
sO6 had been repaid. The total loans
to the revolving funds on that date
were $289, 050,01e. Interest collections
amounted to $S,021.544."
He pointed out that although Con-
gress had appropriated apart from the
revolving fund 81 5000 for the adj
ministration of the agricultural market
ing act during the first year and that
Of this amount 100000 was not spent
and was returned to the Treasury.
Special Session Doubtful
It would take an act Of Congress
to abolish the Farm Board, and 1t cer-
tai1ly would require the presence Of
Congress to increase Federal tax rates.
There does not seem to be the slightest
prospect of q special session Of Con-
gress at this time. Regular Repub-
lican Senator's insist that the Treasury
will be able to raise plenty Of money
to take care Of the deficit through the
sale of Government securities.
Senator McNary pointed out that the
Federal Farm Board has other functions
Of great Importance, beside purchase Of
wheat for the sterilization Of prices
of that commodity. He insisted that
the talk of doing away with the Farm
Board was absurd. He said that the
Farm Board had been successful in its
operations with farm products other
than wheat. and he added that even
in the case Of its dealing In wheat there
had been considerable benefit to the
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