The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-12-14
OPEN HEARINGS
ON new KIND
OF FARM AID
Domestic Allotment Plan Is
Favored by Democrat
Chiefs of House.
BY MARSHALL M'NEuLL
Times stan Writer

WASHINGTON, Dec. IA new
variety Of federal price legislation
that would guarantee to farmers of
four products specified sums in adj
dition to current prices is the
essence Of the new domestic allot-
ment plan of farm relief upon which
hearings started today before the
house agricultural committee.
The scheme, evolved out of
numerous farm relief proposals, APP
parently has the support of the
Democratic leadership of the house
Whether it would be approved in
the senate is problematical: a pres
idential veto is probable. Upon its
fate seems to hang the special
session that President-Elect Frank
lin D. Roosevelt's congressional
supporters want to avoid.
The form of the proposal is not
fixed yet, but in a tentative con-
hdential draft Of the bill, said to be
in line with Roosevelts ideas, the
machinery for aiding farmers with
actual money is set up.
Plan Wholly Emergency One
This money would come from
mills, packers and other professors
of wheat, cotton, tobacco and hogs,
but whether they would absorb the
tax of AZ cents a bushel on wheat,
5 cents a pound on cotton, cents
a pound on tobacco and 2 cents a
pound on nogs, or pass it along to
consumers is a matter of contro-
versy.
Some economists believe the pay
ment OF these taxes by the ultimate
consumer is inevitable.
The plan is wholly an emergency
one, intended to make the tariff
effective for agriculture, and would
include all farmers of these prod
ucts within the first year. Later,
if the plan is continued a system
intended to reduce. production is
included in the scheme.
The bill, as it now stands, begins
with a unique and important con-
gressional declaration Of policy on
the agricultural situation, fixing the
farm distress as a problem of ma
tional public interest, and demand
ing agricultural planning and read
justment.
How Scheme Would Work
The bills provisions in the first
year of its enactment would affect |
Mr.. John Farmer out in the wheat
belt or down in the cotton south |
like this:
The secretary of agriculture would |
estimate as nearly as practicable" |
and will proclaim the percentage
OF the domestic production of |
wheat, cotton, hogs and tobacco that |
will be used in the coming year.
For example, John Farmer raises
100 bushels of wheat or 100 bales |
of cotton, and SO per cent of his
is the part for domestic |
consumption.
Mr. Farmer harvests his wheat |
or cotton, and takes 1t to the ele-
vator or gin to sell.
If it's wheat, on each of the fifty |
bushels for domestic consumption |
he receives an adjustment certifi-
cate" valued at AZ cents-the
amount of the wheat tariff.
If it's cotton on each pound he |
receives an adjustment certificate"
worth cents, or $25 bale.
Professor Pays Tax
Eventually, these products reach
the professors, the millers or spin
ners who, under the bill, will be
taxed for adjustment fee-the mil
Ter 40 cents a bushel on wheat, the
cotton spinner 5 cents a pound on
cotton. This tax goes into an "ad-
justment fund" set up in the treas
ury
Within a specified time, and al
lowing a specified percentage for
costs of administering this proposal, |
the producer can cash in his certif- |
icates for their face value.
The idea is for the professors to /
absorb the tax if possible. Advo-
Gates OF the scheme contend they
can do this, pointing to the fact
that the wide fluctuation in the
price of wheat has had practically
no effect upon the price of bread
After the fast year, the secretary |
of agriculture would investigate and |
estimate, and the President would
proclaim that certain reductions in
production are necessary.
Contract on Production
The secretary then would enter
into a sort of contract with pro-
and under this the farmer |
would not exceed his production
quota, which would be thus fixed he |
would be prepared to reduce his /
production if necessary, or he would |
increase it if at the same time he
got another producer to cut down
enough to make up the difference. !
Then the same adjustment certifi- !
cate plan would apply.
The bill endeavors to protect
cotton spinners against "disadvap-
tages in competition" by leaving a |
processing tax of cents per pound |
on silk and rayon. In addition, it !
provides penalties designed to insure
payment of the processing taxes; it |
repeats the sterilization provisions
of the existing agricultural market
ing act: but continues this co-opera-
tive work of the federal farm hOard