Milford chronicle., 1933-05-19

overhead costs caused by cOmpeti-
tion. This section of the Act pro-
vides for substituting cooperation
under government supervision, for
cut-throat competition.
That portion of the processing
tax that is passed on to the consum-
er can not become burdensOme to
him. That portion of the retail cost
of finished article made from
farm product. which goes into the
return to the producer of the raw
material, is very small. In New
York city, for example, when bread
was selling at an average retail
price of 81 cents loaf in 1882, the
wheat grower was setting six-tenths
of a cent for the wheat that went
into the loaf.
Doubling the price of wheat
would have increased the price of
the loaf only six-tenths of a cent.
At the same time, when pork pro-
ducts were selling at a little less
than 1872 cents a pound, average
retail price. the hog producer was
getting less than 7.3 cents pound.
Raising the price of raw cotton
cents a pound would increase the
price of $3.50 cotton shirt not
more than s cents.
The Act gives authority to the /
Secretary of Agriculture to make
public any Information about the |
relation of the processing tax to the
price paid to producers and to the |
retail price of finished products, and
thus prevent pyramiding of the tax
or profiteering at the expense of
consumers.
At the same time that the Secre-
tary of Agriculture is empowered to
take sthese measures for increasing
farmers incomes and balancing pro-
duction against demand, it is con-
templated that there will be vigor-
Gus and definite effort. through
agreements with foreign nations
and otherwise, TO enlarge and i'm
prove the foreign market for Amer
lean farm goods. The trainers of the
Act recognize, however, that inn
proving the foreign market will re-
luire time, since international move
neIits Of the sort are slow. In the
a national emergency ex-
sta and the Act provides means for
Meeting that emergency.
The fixed charges. OF debt and in
crest which th farmer must pay
fave been taken into account under
he Act; The so-called farm mort
,age section Isl administered mot by .
he Department Of Agriculture but
~ the Farm Credit Administration,
argely through machinery of the I
federal land banksaaid the repre-
of the Farms. Loan Conf
missioner in those banks. Specific !
aboutatile provisions Of 4
he section should he obtained from
he Federal land banks.
In brief, this section of the bill! en- 4
bles these banks to issue bonds and
roni the proceeds to reduce. under
ertain conditions. the principal OF 4
arm mortgages and the rate of in 4
crest. and to extend the sine of
ayment. There are. other provisions
pr short-tine and other loans. 4
SPECIFIC details. scope. oi'ganiza- =.
on. and procedure for administer
lg the new. Farm Act are now be-
lg worked out In conferences be-
yeen the Secretary of Agriculture
nd representatives Of producers. :
rocessOrs. distributors, and other :
roups. Until these councils have
ade their recommendation and
ic Secretary has, formulated his :
,gulations, these administrative !
ANS cannot be announced.
The policy of comparatively at :
cking the problem of agricultural )
ljustment to reality, as comprised !,
the Act, is adopted because of all =
But the emergency will >
,ntinue to exist until the policy :.
,comes the permanent policy of
agriculture. 3