The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-05-15
TRADE AGREEMENTS
TO AID AGRICULTURE
ARE BEING DRAFTED
Administrators Seek to Elimin-
ate 'Cut-Throat' Compe-
tition in Markets
WILL DELAY USE OF POWER
Wallace to Go Slow on levying
Processing Tax Because
of Tariff Issue

-~'s
Of Tariff Issue
Washington, May 15.-(F-First ef-
forts to help agriculture under the
new farm act centered Monday about
the drafting of trade agreements to
remove depressing influences on farm
prices which the administrators lay
at the door of "cut-throat COMPETE
ton"
George N. Peek, chief administrator,
moved towards creation Of agreement
number one covering prices and hand
ling Of fluid milk for the Chicago
metropolitan area which he described
as in chaotic state"
Secretary Wallace said that one or
two of the principal powers Of the
act will not be used at the start. One
Of these was authority to levy process
ing taxes and use the proceeds to fl
nance program for acreage retire.
ment as part Of drive for domestic
crop production.
The act provides that when pro-
cessing tax is levied, compensatory
import tax on the commodity or prod
ucts manufactured from it shall 60
into effect simultaneously. This tax
would be. in effect. tariff duty, add
ed to duties already imposed on some
Of the basic commodities in the bill
wheat, cotton, corn, hogs, tobacco, rice
and dairy products. The white house
has taken the position that imposition
Of these taxes might be regarded as a
breach of the recent tariff truce.
Is Selecting Helpers
Wallace will select this week the
chiefs to direct the farm adjustment
program for most Of the basic COM
modities.
Wallace said he Is anxious that
farmers do not expect extensive &C
complishments from the act within a
short time. He said that the problems
to which his administrators will ad-
dress themselves are so involved that
quick results are out of the question.
Because of the effect Of the tariff
truce on the probable use Of process
ing taxes to finance acreage reduc-
ton, he is uncertain as to what can
be accomplished in that direction this
crop year. Even though the tax coulo
be used promptly, he said, there was
no certainty that acreage retirement
could be made effective for 1888 crops
because of the advance in planting
and the time which will be required
to set up commodity councils, explore
the position of each crop and devise
methods to improve their status. He
regards the formulation OF an acre
age-control program covering winter
wheat to be planted this fall as more
likely Of accomplishment.
Henry Morgenthau, Jr, farm board
chairman who will direct the mort
gage relief program, authorized In the
farm act, began conferences Monday
with representatives OF leading insur-
ance companies who jointly are owed
about 5000 900, 900 in farm mortgages
Under the act Morgenthau Is author
lied to refinance up to $1,000 600
in farm mortgages during the mex!
two years.
will Report to Secretary
Representatives of milk producers
and professors from the Chicago area
were instructed by Peek to agree
among themselves and submit the re-
suit to him. /
If Peek and Secretary Wallace find
icfo ut fhav have
power under the act to legalize 1t ana
require its observance.
Meanwhile, Peek conferred inform
ally with several representatives OF
the cotton industry regarding the
possibilities of working out a plan to
improve the price and position Of the
crop this year. No formal action VIII
be taken until after a commodity
council for cotton has been estab-
liShed.
The main approach to improvement
of conditions in the dairy industry
will be through trade agreements, 1t
was explained at the department OF
agriculture, as thousands Of queries
from dairy farmers and others were
received asking for the program on
various commodities.
The exact plan to help the dairy
industry will not be known for some
time. First commodity council COW
ering that product must be set up and
the unusual conditions in the dairy
industry examined and the possible
ties Of aid methods thoroughly ex-
plored.
Because production Of milk can not
be readily translated into terms OF
acreage, as in the case of wheat, con-
troll or reduction of dairying output
can not be handled through leasing
or retiring acreage in other ways.
The department feels that agree
ments covering local situations may
be drawn and put into effect particu-
larry covering fluid products, milk and
cream, and that the more general or
national problems of the industry can
be handled In q similar way but less
promptly.
JAMESTOWN WINS OPENER
jamestown, N. D., May 15.-tP)EI
jamestown won the first baseball
game nlaved here this season nv shut.