The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1933-05-11
Legislation Provides for Price
Increases to Levels in
Prosperous Days
AUTHORIZES INITIATION
Third Section Allows Refinanc-
ing of Mortgages on
Farm Property


prosperity to the American FARMER
was ready for the presidents sigma
ture late Wednesday after final ap-
proval by the senate, according to a
United Press dispatch to The Gazette.
The measure as finally passed does
not include the so-called John Simp-
son amendment which would have
authorized the secretary of agricul-
ture to guarantee fixed prices for
that portion of the farmers crop
which is consumed in the United
States.
Earlier in the afternoon the senate
approved partial conference report
on the bill but stood out for the "cost
of production" feature. Later the
senate receded and approved the re-
port. The first vote on the report of
the senate and house committee in
charge of ironing out differences was
So to %.
President Franklin D. Roosevelt's
bill provided for a return to price
levels of prosperous days but he OPP
posed the arbitrary levels set by the
Farmers Union president. Senator
Thomas Schall, Minnesota Republic
an, attacked the presidents stand
after the vote.
In Three Sections
There are three distinct sections to
the law. The first part is the pro-
duction control and benefit payment
section; the second part is the agri-
cultural credits law; and the third
part is the national financial and cur
rency measure. The first part is adj
ministered by the department Of
agriculture, the second part by the
farm credits administration, and the
third part lies at the discretion of
President Roosevelt and his treasury
aids.
Under the production control section
the secretary may use one or all OF
the following methods: (1) Acreage
reduction of the basic agricultural
commodities by rental and benefit
payments to farmers; (2) payment
of allotment benefits on the domestic
portion of crop in return for agree
ments covering specified crop reduce
ton; or (3) the use of marketing
agreements with professors and
handlers of basic farm commodities
SO that higher prices will go to farm
ers under a guaranteed system of
production control and fair play.
The basic commodities found in the
law are wheat, cotton, field corn, rice,
Al
beets and milk and its products. On
all commodities named except tobacco
and milk the base period for figuring
necessary price levels to reach equali-
ty in farm buying power is 1909-14.
On tobacco and milk products the
base period is from 1928.
$100,0OO,000 on Hand
To meet the cash payments re-
quired to re :mburse farmers for acre
age reductions and crop control to
needful amounts, the federal govern
ment has $1OO,00O,0O0 on hand for
immediate use; but later the sums
paid out of the treasury will be restor-
ed by means of a processing tax.
The agricultural credits section
amends the federal farm loan act and
provides for issuance of bonds for
the redemption and reinancing of
farm mortgages, the reduction Of in
terest and principal and for the
liquidation of joint-stock land-bank
business in an orderly manner.
The third section deals with in
fiation and includes means at the
will Of the president, the secretary
of the treasury and the federal re-
serve system for adjustment Of ma
tional finances and financial policies in
relation to international trade; for the
coinage of money or the issuance of
federal notes, and in general for the
extension of new credit and an elast-
ic monetary system.