Evening star., 1932-12-07
|PR|CE BOOST, PLEA
| OF FARM BOARD
Report Tells Congress FutiI.
ity of Sterilization, Sug-
gesting Program.
By the Associated Press.

CONGRESSIONAL actlOn 10 increase the
income of the American farmer by ele-
waiting the general level Of agricultural
prices to q par with other commodities
was advocated today by the Farm
| Board
This multi-pronged problem was as
signed to Congress in special report
, on legislative recommendations which
said the boards stabilization opera
tions were powerless to achieve this
| end.
No hint as to the boards ideas on
| the form Of such legislation was given
except that the process should pay
the costs, II any, on q col tinuous and
| self-sustaining basis" and provide an
effective system for regulating acreage
or quantities sold, or both.
The board also urged that 1t be au-
| thorized to compromise debts now
! and be provided either with additional
| money for the use Of cooperative or
empowered to borrow funds on its own
| bonds or debentures for that purpose.
Net assets Of the boards $500, 900 900
revolving fund were placed at $140,-
000, 900 when all outstanding loans are
appraised on q conservative basis"
Revolving Fund Value.
Except for the necessity Of setting
aside SAB 900 900 to cover the boards
equity in wheat and cotton turned over
to the Red Cross" the report said, ''the
present value Of the revolving fund
, would be $l83, 900 900.
These amounts are left after de-
! Quoting all losses on account OF sta
bilization operations, and setting aside
liberal reserves against possible losses
on loans now outstanding to Coop
erative associations"
Along with the legislative recon-
mendations, the board transmitted to
Congress its annual report, which laid
down a five-fold program for boosting
@ general reduction In international
ricultural debts by agreement among
debtors and creditors
Holding the present low prices Of
farm products must in general be
ascribed to other causes than heavy
surpluses, the board said any remedial
plan should include:
"1. fastening business recovery in
the United States, thereby increasing
returns from products sold in the do
mestic market.
-. Steps to initiate recovery in in
ternational trade, thereby strengthen
ing foreign demand for export prod
ucts.
"3. Readjustment Of taxes. interest,
and principal payments, freight rates
and other fixed charges which enter
into the farmers expenses and now ab-
normally depress the share which he
receives of the final retail price
a. Further strengthening and ex-
panding Of cooperative organization to
reduce the expenses of marketing and
increase the producers share of the
consumers dollar.
"5. Efforts, through cooperative
marketing associations or in other ways,
to secure a better adjustment between
the quantities produced and the needs
Of the market"
stabilixation Falls Short.
Explaining that to 'rhelp raise the
level Of farm incomes, devices other
than sterilization are required" the re-
port on legislation added:
I'm the light Of the experience with
sterilization over the past three years,
the board recommends that any new
legislation be based on the following
two principles, which have been demon
strated by experience to be essential
for effective relief.
Il. prices cannot be raised unless
some one pay the costs. The new plan
must be self sustaining, with o continu-
Gus method Of covering the costs.
Prices Of other products are now 40
per cent above the prices at which farm
products are selling. II the new
method raised prices to domestic con-
sumers to the level Of prices Of other
commodities, that would not be giving
farmers an unfair advantage.
"2. Prices cannot be kept at fair
levels unless production Is adjusted to
meet market demands. Many farm
products are now being produced in
quantities in excess of those which the
market will take. Higher prices, with
out regulation Of production, would
stimulate still more oyerproduction.
ANY method which provided higher
prices and did not include effective
regulation Of acreage or of quantities
sold, or both, would tend to increase
the present surpluses and soon break
down Is result.
ITO be Of lasting help, any plan must
provide . system OF effective regula-
ton, 30 that our millions Of farmers
can plan and adjust their production
on a dependable basis, instead Of com
netting blindlv with each Okhorn