The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-26
FARM PRICES
REGULATED BY
MANY NATIONS
Schemes Like Proposed
u. S. Allotment Plan
Are in Effect.
BY HERBERT LITTLE
Times stan Writer

WASHINGTON, Dec. 26.-Plans
for controlling price and production
Of farm products, similar in some
phases to the domestic allotment
plan now before congress, have been
put in effect in several foreign
countries, including Great Britain,
France, Egypt and Holland.
Frances wheat quota system,
most frequently compared with the
processing-t allotment plan, Is
based primarily upon the fixing Of
quotas for the amount of each farm
product which may be imported.
In addition, France regulates the
percentage Of foreign wheat which
millers may use in making flour for
bread.
Frances system was undertaken
chiefly for national defense reasons,
TO make the nation as self-sustain-
ing as possible The quotas and
percentages can be reduced to abb
sorb increases in French production.
Holland Has Unique Plan
The United States on the other
hand has an export surplus of
wheat, hogs, cotton and tobacco
but the allotment plan conceivably
would operate just as efficiently,
because the bounty would be paid
to farmers only on the percentage
of their crop which would be des-
tined for use in this country.
The payment Of the bounty on
each unit-from money collected
from millers and other professors
would be conditioned upon an agree
ment to reduce acreage or produc-
ton in the future.
Holland has an unique hog price
fixing plan in operation. Tags are
issued to hog raisers, and each an
imal sold must bear a tag. Only a
limited number of tags is issued to
each grower. If he desires addi-
tional tage, he must pay Consid-
cradle sum for them. The practical
effect is to prevent him in almost
all cases from selling a surplus.
Great Britain Pays Bounty
For about a year the Netherlands
has fixed also the price at which
domestic wheat may be sold. This
price fixing is aided by restrictions
on the percentage of foreign wheat
which each miller may use in man
ufacturing flour.
Great Britain recently has adopted
what amounts to a bounty on
domestic wheat. Every miller or
professor of imported wheat must
pay a tax on it. This really amounts
to a tariff on wheat, although it
lis not collected at the customs
houses. This tax is used to pay to
the domestic wheat producer the
difference between a price fixed as
profitable to domestic wheat grow
ers and the current average price.
Switzerland and other European
countries also give in effect a bounty
to the domestic wheat producer by
leavying a tax upon imported wheat.
Brazil Fixes Coffee Price
Egypt's basic restriction on the
production of long staple cotton
takes the form of providing that
only certain proportion of the
land on which it can be grown may
be used for that purpose.
Cuba has attempted to restrict
sugar production by providing for
postponing the cutting of the cane,
thereby holding down the new crop.
In Java sugar restriction has
taken the form of decreasing the
amount Of water available to the
irrigated land on which most of the
sugar is grown.
Brazil has tried to control the
price of coffee for almost thirty
years. At present the Brazilian
government is attempting to peg the
price by buying and then destroying
the surplus.