Evening star., 1932-12-21
PRIVATE TRADES"
HIT FARM SUBSIDY
Fear Various Schemes Pro-
posed. for Benefit of
Agriculture.
Special Dispatch to The Star.

Special Dispatch to The Star.
KANSAS CITY, Mo, December 81
NANA).-Why do flour millers,
country elevator operators, large grain
merchants and others marketing farm
products SO strongly oppose all plans
for engaging the Government in meas
UreS for artificial increasing of prices?
Why did they oppose the agricultural
marketing act, particularly its stabil1za-
ton and price insurance features? Why
are they opposed to the debenture plan.
equalization fee plan and the domestic
allotment plan?
Arc they SO selfish and so blind to
the tragic state of agriculture that they
have Willfully set up their own desire
for profit against the well-being of ag-
riculture and the country?
These questions were asked Of Rob-
ert E. Sterling, editor of the North
western Miller. publication recognized
as a world authority on subjects con-
nected with flour milling and the trade
in grain and flour. Mr.. Sterling has
been a vigorous critic of the many
trade in wheat and its products by
pools. quotas, excessive duties. exchange
restrictions and such measures sS the
agricultural marketing act in the
United States and the British wheat
act.
Hits Economic Tricks
In his opinion agricultural prosperity
will be recovered in the United States
only through realization by farm lead
ers and politicians that continued ef-
forts to play economic tricks with the
worlds food can mean only recurring
disasters, that the inevitable result of
price control is further price disaster
and that the more experimental these
efforts the greater the penalty
1T is unfortunate said Mr.. Sterling,
that public opinion has so widely in
terpreted the warnings of the trades
against these measures as wholly in
their own self interests Flour milling
and the grain trades have suffered
equally with agriculture No merchant
can profit handling 25-cent wheat and
1O-cent corn and oats.
Aside from owners of large eleva-
tors. whose profits were for two years
enhanced by the action OF the Federal
Farm Board in buying millions OF
bushels Of wheat and creating unprece-
dented demand for storage space, the
grain trade is in as low stage as any
Cthcr line. Millers selling flour for So
3 b-----cl find it difficult, if not inpos-
s.blo, to Get enough margin to cover
actual W2ge and pov.e-' costs. and are
I,2s!---?C no money or are operating at
No clcmcnt could be more eager to
support Cly moacure, even theoretically
Unsound, which offered the slightest
ch1ncc OF improving the level of prices
without bringing ON other evils more
serious.
Opposition Explained.
why do they oppose these measures?
They know that most. if not all, of the
echemes for agricultural imitation have
little back of them, save the ardent
wish they will be helpful.
"A group of farm leaders. many en-
tirely sincere. but others merely job
holders and false prophets fattening off
the Ills of agriculture by selling quack
cure, are trying to set up price-boost-
ia% cchene-any price-bccsting scheme
BIT preferably ore they have thought
ID. Cooperating are college economists,
Who KNOW q great deal more of the
theories Of money and exchange of
goods than men actually in the trades.
but who have not had any actual eX-
periocce in handling seasonal crops.
storing them, financing them until re-
CURED for consumption and maintain
ing that secure balance and adjustment
IN both domestic and world trade which
1nsures the grower free, open market.
These men propose an excise tax of
SO to 100 per cent on flour, base of the
most staple food, and pass off the ef-
feet upon consumption as of little or
no consequence. They dismiss world
trade in agricultural products, from
which we have derived most Of our
rational wealth, and say the way to
economic Galvction is producing rothing
for GALE, t. go into economic hiberna-
ton and live, perhaps forever, off our
Own fat.
The third group in this wel-mecn-
ir9 cffort is composed Of members of
Congress. The economic philosophy of
most of thesa men, scores Of whom
a fed OF cotton and rarely a hog. is
epitomized in the phrase, something
must be done about it,
Domestic Allotment Plan.
"The scheme now being most discussed
IS anomalous one of placing an un-
preceoented consumption tax on COM
modities Of which we have the greatest
surplus and are producing most. and
giving the already over-producing
grower direct subsidy. This plan has
Oc6il plCtuitU GS IldEIllS alIllOSI lIl-
limited virtues. The sponsors have en-
gagged support OF those making for and
selling things to the farmer by por-
suading them that a subsidy provided
BY taxing consumers CT basic foods will
give agriculture larger purchasing
power. Similarly. they have obtained
help Of owners Of farm mortgages by
the hope that returns from the subsidy
will enable them to recoup their losses
They minimize or wholly disregard the
fact that of the more than six million
farms in the country, onlv part will
benefit through the subsidies. and that
land and security value of millions of
unsubsidized farms will Sink to nothing
They propose that only growers Of
wheat, hogs, cotton and tobacco shall
share in the proceeds Of the excise tax
This means that in the great Northern
and Central States the wheat farmers,
perhaps half million in six Stats.
would be redeemed from disaster by
splitting up nearly half the $500, 100000
flour tax it is proposed to collect from
the millions of workers in mills, fac
tories and mines Ten mi]licns o. these
are unemployed and hundreds of thou
sands are dependent upon the Red
Cross for the bread it is proposed to
tax. We have heard from no proponent
of the plan whether Red Cross flour Is
to be subject to the 50 per barrel tax.
1T is to these things members OF the
much accused private trades object.
There is no profiteering in any line OF
sxxpuse,..Guss, usxrss.