Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-01-18
FARM BOARD MAY
BECOME AN ASSET
Raise in Commodity Prices
Would Turn Operations
Into Budget Aid.
BY DAVID LAWRENCE.

In the search for items to cut out OF
the Federal. budget some of the oppo-
pents of the Farm Board have assumed
that a saving of half billion dollars a
year could be made by abollShlng the
board. Now they have discovered that
this economy already has been made,
and that not more than two million
dollars will be spent under the Federal
marketing act for the fiscal year be-
ginning July l next.
Instead Of a liability. requiring more
funds. the Farm Boards operations
nay turn out to be a revenue asset in
the next fiscal year. This is because
out Of the total Of $500 100000 appro-
priated over a three-year period some
Of the money is still in the treasury OF
the Farm Board and the remainder Is
invested in loans on commodities and
physical facilities. If all this were
Inundated at present market prices, 1t
is estimated that the Treasury would
get back about $25GO0O 900, which, Of
course. under Federal practice, would
be a miscellaneous receipt.
Liquidation Blocked.
Because the dumping of cotton and
wheat held now by the beard is Strenu-
ously opposed by the members Of Con-
erees from agricultural States, who fear
that prices would be depressed by such
action, no plan to liquidate can imme-
diately be adopted. This means that
during tee next Is months, when grad
ual liquidation will have been under
taken, the Federal Farm Board will be
recovering the sums invested in preYi-
Gus years of sterilization operations.
Thus even if it were desired to aban
don the Farm Boards operations, 1t
would be necessary to keep the ma
chinery intact to protect the Govern
ments investment.
The administrative expense Of the
board last year was $3.50 600, and the
new budget calls for approximately the
same amount. There are no items any
where in the Federal budget either I'M
der the Farm Board or under the De-
partment of Agriculture which call for
further purchases of commodities by
Government agencies or further appro
priationS for loans.
Leans Will Continue.
Loans, of course, will continue to be
made cut of the original $500, 900 900
appropriation, and 1t may be that when
the commodities have been sold and
the board has been reimbursed the
marketing organizations will insist on
keeping the receipts intact as a re-
volying fund to be used for financing
loans to them in the regular course of
business instead of in purchases on
the sterilization plan. AS for the lat
ter. the beard has definitely abandoned
sterilization and has announced it will
COnfLe its operations to the making of
loans to recognized co-operativeS, as
provided under existing law.
So the fight on the Farm Board
amounts to this: There is no further
economy to be made on the matter of
large appropriations, and the present
machinery will be required to luiquidate
the existing loans and investments in
commodities This will not interfere
with the attack on the board, whose
operations probably will become a mat
ter Of political debate this year. But
for all practical purposes the Farm
Board expenditure is a thing Of the
past and all monies in the future will
become assets on Uncle Sans books,
and available for use in future budgets
IS a means Of offsetting other expen-
oltures or even making q surplus.
In the years following the war there
were from tire to time items of revenue
realized from the sale Of Government
property which helped to swell the re-
ceipts and aiced in bringing about a
Treasury surplus. If commodity prices
should rise materially in the next two
years, the Farm Boards operations may
actually aid the Federal budget.
tCopyright, 1881