Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-12-05
Allotment for Farm Relief
Proves Pulling to Country

Domestic allotment" which is now
before the country as possible solu-
ton Of the farm problem, Is widely
discussed, with some optimism on the
part of those who believe that it will
be adopted as policy of the new Fed
eral administration. There are some
who hold that the plan is too intricate
to disclose certainty Of success. Bearing
upon the subject is a resolution adopted
at a conference of business leaders at
Chicago, making the statement as to
national needs: "Inasmuch as 1t will
be slow process to negotiate reciprocal
tariff agreements, and make govern
mental debt adjustments in such way
as Immediately to increase exports to
a material extent, We advocate the i'm
mediate development of plan which
will establish a domestic price level for
basic farm products, which Is lar
enough above the world level to re-
establish an equitable price ratio be-
tween farm and industrial prices"
1.-THE voluntary allotment plan" as
explained by the Houston Chronicle,
"visuahzes subsidy for those farmers
who will reduce their production of GER
tain staples now overproduced. The
subsidy would vary, diminishing as
prices mount, the idea being that with
a reward given for acreage reduction
the supply of the staple in question
would decrease, and the price thereby
automatically be advanced. The entire
process would be under the protection
Of a tariff wall. The costs would be
Immediately passed on to the trade in
the commodity affected, the traders be-
ing compelled to pass it on to the gen.
eral public, no payments from the Fed
eral Treasury being contemplated. The
proponents OF this plan argue that 1t
Will accomplish two essential purposes.
increase farm prices, and SO solve all
questions OF mortgages and taxes and
low living standards, and at the same
time produce the required balance be-
tween supply and demand necessary to
maintaining sound conditions"
The plan IS called ''the most plaus-
lble program in this direction by the
Asbury Park Evening Press, which
records that farmers, business men
and statesmen have been free with
their praise" and that many men,
bers OF Congress are enthusiastic" That
paper comments: TT is obviously su-
perior to other farm relief programs,
most of which nullified themselves by
offsetting price increases with increased
production which, in turn, reduced the
price to its former level or below. The
price increase will be paid in the form
OF a Federal tax by the domestic pur-
chaser; 1t will be equal to the tariff on
the product. and it will be distributed
among the farmers by the Government
on pro rata basis. 1t stipulates. how
ever, that farmers enjoying this reward
will agree not to increase production
over their former average, thus pre-
venting crop increases and the price
declines that would be certain to fol-
low
Bernard Baruch, one of the Roose-
welt advisers" according to the Char
lotte Observer, has recommended that
the plan be applied to wheat alone, but
the probability Is that it will be ex-
tended to include cotton and other
commodities. Some Republican leaders
are opposed to it and there might pos
sibly be veto. The bill in its present
shape would empower the Federal Farm
Board to administer the crop allotment
system and provides that the law would
not become effective until 60 per cent
Of the producers of q commodity had
agreed by vote to participate. THE
bounty to be paid for domestically con-
sun1ed wheat would be raised Through
"a tariff adjustment charge on x1,ch
units of the commodity processed. mar
ufactured or distributed for domestic
USE That Is to say, the millers would