Evening star., 1932-09-20
HUGE l. 5. PAY ROLL
SEEN IN FARM PLAN
Domestic Allotment Proposal
Hits Wage Farmers as
Well, Says Miller.
Py tl,a ted Press

BY the Associated Press
FRENCH LICK, Ind, September 90
Measures which he said would help
maintain balance between agricul-
ture and industry were named here
today by Sydney Anderson. Minneap-
oils miller, in opposing the voluntary
domestic allotment plan. newest form
of farm relief. Mr.. Anderson was
speaker at the convention of the Grain
and Feed Dealers National Association
here.
IF agriculture is producing more
than can be sold and consumed at
fair return to agriculture, substantially
equal to returns obtained for similar
employment Of capital and labor in
industry, one or more of the following
measures seems indicated" Mr.. Ander-
son said. First, reducing production
to an amount which can be purchased
and consumed at profitable price.
Second, expanding foreign markets.
Third, increasing industrial purchasing
power through increased wages and in
comes. Fourth, continuance Of the
trend from the farm into industrial
employment, thus decreasing the num-
Der OF producers and increasing the
number of consumers of agricultural
products.
Methods Have Been Tried.
These measures have been employed
in the past and have served in general
to maintain a balance between agri-
culture and industry. Mr.. Anderson de-
clared. They involve general adjust
ments in both organization and in
duStry," he explained. They are some
times slow. but they work. They leave
the door open to individual opportunity
and enterprise They permit and en-
courage economic adjustments in con-
sequence of free play and economic
laws and forces. They involve no Gov
ernment interference, direction or con-
troll of private enterprise
Interference with these natural
'tarces through Government control of
prices by attempts to equalize condi-
tions by 'robbing Peter to pay Paul
only serves to hold out false hope and
to retard the normal forces which regu-
larly move toward recovery and recup-
Grafton"
An enormous bureaucracy and an in
creased army of Federal pay-rollerS
was predicted by Mr.. Anderson if the
domestic allotment plan becomes law.
He named many objections to the plan,
some of them being: 1T levies tax
Oll OIL lllC IOllouulClo 1Cl tllC SOlC bCAiC-
fit of the producers of wheat, cotton
and live stock. 1t is an attempt to
find a legal method of 'robbing Peter
to pay Paul and to set up the ma
Chinery for doing it in such way that
Peter will not know he Is being held
up The acceptance Of the proceeds of
the tax on the part of the farmer is
voluntary. The payment of the tax by
the consumer is involuntary.
Cuts Wage Garner Down.
'The bill establishes equality for
agriculture by tearing down the pur-
chasing power of the wage Garner to
increase the purchasing power of the
producer of wheat, cotton and live
stock. It is justified by its proponents
as a measure to make the tariff effec-
tive on agricultural products and yet
not now and never has been a tariff.
In principle and objective the do
mestic allotment plan is exactly the
SINE as the McNary- -Haugen bill and
subject to all the objections. 1t diff
ferS only in the method of making the
el!otments to the producers and in ad- |
ministrative detail. The McNary- Haugen
bill was an indirect subsidy. The domes-
tic allotment plan is direct subsidy. i
1t creates no new wealth and no new
purchasing power. 1t opens no new
markets. 1t promotes no new consump-
tion or use.
1T simply accomplishes a transfer. of
purchasing power from consumers to the
agricultural producers of commodities
covered by the bill. This transfer of
purchasing power is particularly unjus-
tifiable now when the indexes of indus
trial wages are at the lowest point in
many years and have suffered decline
approximately equal to the decline in
gross farm income"
Sees no Prosperity Aid.
Industrial, consuming and purchas-
ing power is even more necessary to
agricultural prosperity than isss agri-
cultural consuming and purchasing
power to industrial prosperity, Mr. An
derson argued.
''The domestic allotment plan," he
said. will contribute nothing to the
return of general prosperity
Charles Quinn, secretary Of the
National Association. in his annual re-
port yesterday at the opening Of the
convention, questioned the legality and
efficacy of the domestic allotment plan,
which he said loomed as the next con-
gressional move to aid agriculture.
Cotton Complaint Made.
j. w. Garrow of Houston. who is
chairman of the Economics Committee
of the American Cotton Shippers Asso-
citation, declared the cotton trade Is
willing to stand or fall on the capacity
to serve and to meet changing condi-
tions, but is unwilling to have the Gov
eminent used against it in an effort to
force these changes.
Mr.. Garrow charged that there is
hook-up between the Department of
Agriculture, the Farm Board and the
co-operatives to force all cotton pro-
duced under seed loans into the COOP
erative organizations
individuals who build new houses in