Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1932-12-29
ALLOTMENT Plan IS.
DESIGNED AS GREAT
AGRICULTURE help
WOULD REGULATE PRICES OF
FARM COMMODITIES In
COUNTRY

-
The domestic allotment plan has
been receiving much attention OF
late as one Of the foremost measures
intended to aid farmers In the Unit
ed States. This plan is being backed
by the principle farm organizations
OF the country, and is designed pri-
mariIy to aid producers of wheat,
cotton, tobacco and pork, these be-
Ing characterized as the main crops
vt the nation.
The plan Is said by at least one
we'll known writer to be the most
daring economic experiment ever
seriously proposed in the United
States. 1t is a complicated plan, as
1t would seek to control the pro-
duction of millions Of farmers.
The allotment plan has been the
topic Of considerable discussion by
congressional members, who seem
to be Of the opinion that the house
agricultural committee would in
clnde only wheat and cotton In the
bill, when 1t Is reported.
Should this plan be Of any bene-
fit to wheat growers, for instance,
1t will be necessary to a majority OF
wheat raisers throughout the nation
to approve the plan for their crops.
The federal government would col
lect an excise tax from the process
or, such as milling companies, on
the part which is consumed in the
United States, by human beings.
There would be nc tax on that part
fed to animals or used on the farms,
moi would there be any tax on the
export surplus. The amount OF tax
on wheat would probably be AZ
cents per bushel, the same as the
tariff duty. On the other products
coming under the plan, the tax
would be In varying amounts, pos
sibly s cents a pound on cotton.
Farmers who would share In the
proceeds OF this excise tax, which In
reality would be a bounty on their
products, would first have to agree
to limit their production, by reduc-
ing 1t 10 per cent or more. Tn the
case OF wheat. the federal govern
ment would determine the average
production In the nation during the
past few years. From these figures
the average production In the indi-
vidraal states would be determined,
and a quota under the new plan
would be set. The states would allof
the reduced quota to each county.
and In each county each farmer
would be allotted his quota.
According to sponsor Of the bill,
Senator Peter Norbeck of South Da-
kota, all this alloting would assign
to the farmer Ibis share of the do
mestic consumption. based on the
total domestic consumption Of that
product within the crop year, and
on the ratio Of the product of his
present farm during the last five
years. to the total national output
OF the same period during that per
i0d."
Farmers entering into contracts
with the government, agreeing to
limit his production to the quota as
signed him, would in this manner be
eligible to n bounty on his crop. and
by limiting production. would be
joining In 1.-THE movement to raise the
price OF his Notwithstanding to
the laws of supply and demand.
Consumers would be forced to pay
the bounty In the form Of increas-
ed prices In wheat products and the
government would collect the bonn
~ from the professors Of the grain
The government would then dIstri-
butte among the contracting farmers
the bounty on the number Of bushels |
their certificates show them to be
entitled.
While 1t Is difficult to estimate
how much added revenue this plan
would bring the farmers, economists
believe a fund would be collected IN
fhe amounts OF about for wheat,
5000. GOO. 900: cotton $50, 600, 900:
tobacco. $40. 900, 900; hogs. between
5000. 600. 900 and $49a. 900, 900
Should All these products be inclu-
ded In the plan. 1t may be seen that
1rnroximately three quarters OF a
billion dollars in added revenue
would be available for farmers.
Congress would raise or lower the
amount OF the tax as 1t saw tit. and
could eyen dispense with the boun-
fv ON farm products altogether when
the Prices of the products attain a
tnstifiable price on the markets
without the use Of this plan.