The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-11
Copyright 1882 by United Press)

Copyright 1882 by United Press)
CHICAGO, Nov. ia legislative
program for farm relief which
amounts to a subsidy for the ma
tons farmers has been approved
by Franklin D. Roosevelt, the
United Press learned today. and one
of the early incidents of his admin
istration will be a conference with
farm leaders looking toward its
adoption.
The plan, drafted by a coalition
of farm leaders, economists and ex-
perts on agricultural problems, is
known as the voluntary domestic
allotment plan"
That plan, its proponents admit,
amounts to subsidy for farmers
at the ultimate expense of the con-
sumner. 1t provides for an excise
tax on farm products in which there
are eXportable SURPRISES, to be paid
by the manufacturer or other pro-
ceSSor who prepares the commodi-
ties for human consumption and a
contractual agreement by the farm
ers to limit production of those
commodities.
Subsidy for Farmer
In a booklet outlining the plan,
its supporters state:
In legal sense, the allotment is
subsidy. For this there are nu-
merous congressional precedents,
notably the merchant marine.
AT one time farmers were paid a
subsidy to raise a specied type of
horse for the army. Farmers have
been given subsidies to induce them
to engage in forestation."
The idea, originated in the de-
partment of agriculture several
years ago and modified repeatedly
since by economists and agricultural
experts, is expressed by proponents
OF the plan as intending TO make
tariffs effective on farm products
and to stabilize prices by control of
production"
Based on the theory that protec-
tive tariffs are not effective on inn
portant farm products, the propo-
sal would seek to stabilize prices
at approximately pre-war levels by
limiting production and to reim-
burse the farmer by handing back
to him his share of a tax on his
wheat, corn, cotton, tobacco, or rice
collected from the miller. the
Slaughterer, the cigar manufacturer
or the textile manufacturer.
Five Products Specified
Only wheat, cotton, hogs, tobac-
co and rice are named in the bill as
subject to the tax, since they are
the only important farm staples in
which an exportable surplus now
exists.
The rates provided are: Wheat.
a tax Of AZ cents bushel; cotton.
. cents pound; hogs, 2 cents a
pound; tobacco, 5 cents a pound.
and rice, one-half cent pound.
An estimated 5000, 100000 would
be collected each year, to be por-
toned out to states by the federal
government and finally to the grow
ers, through a system of local bu-
reaus in counties.
Each farmer would share on tha
basis OF his average production of
a given product over the last five
years. Only those farmers would
snare in the allotment who had
signed agreements to limit produce
ton to total established bv q
supervisory committee. The farmer
would be left free to market his
product wherever he pleased.
Inc tax would be collected only
on the portion Of the various prod
ucts used for domestic human con-
sumption. An estimate of the per-
centage of the total crop so used
would be utilized as a basis for dis
tr1bution of the fund.
Specific Case Given
Farm groups hitherto following
many contradictory policies, are
known To have neared agreement on
the voluntary allotment plan.
IN specific case, it was ex-
planned, the plan would work out az
follows:
II farmer Jones in South Dakota
raises an average Of 1000 bushels
OF wheat year, he would receive
an allotment of AZ cents a bushel on
600 bushels from the government.
since domestic human consumption
normally uses 60 per cent of the
total wheat production.
That would amount to $3.50 he
would receive over whatever he cot
1or his wheat at the elevator. The
miller or professor would purchase
at the world price. The federal gov
eminent would collect from him the
tax OF AZ cents a bushel.