Evening star., 1933-01-05
FARM AID DEBATE
! BEGUN IN HOUSE
Emergency Plan of Demo-
Gratis Attacked on Taxa
tion Feature.
By the Associated Press.


An emergency farm relief plan de-
signed to make the dollar signs bulk
larger in the American farmers 1888
income came up for debate in the
House today, with Democratic support
ers hopeful they could beat off attacks
against it. However, there were indica-
tions of bitter urban-rural struggle
Different in virtually every respect
from those perennials-the equalization
fee and export debenture-the House
leadership presented it as one of the
main points of the Democratic program
to start the Nation on the road to
recovery, but a determined opposition
leveled their fire at its taxation features,
which they called giant sales tax"
Amendments to Be Reached.
Representative Rainey, the majority
leader, said there was little chance of
final action before next week. Amend
ments were not expected to be reached
before Saturday, and there will be many
of them.
cotton, tobacco and hogs in order to
pay the farmer bounty was the chief
object Of opposition.
A minority report from the Agricul-
ture Committee, signed by six Repub-
licanS and two Democrats, aSsalled the
adjustment charge as "a magnlf1ed sales
tax upon the necessities of life"
We believe that the imposition OF a |
tax as proposed in the bill which pro- |
vides that such tax shall be distributed |
to a given class of people is unconsti-
tutional," this report said.
Determinations Removed.
It's Democratic sponsors stressed that |
the bill was an emergency measure,
which would not remove all the dis
ordinations from which agriculture
suffers"
Further legislation is necessary" |
Chairman Jones of the Agriculture |
Committee said, with reference to such |
matters as the farm mortgage and rural |
credits situation, unduly burdensome |
taxation upon farm lands, readjust-
ment of our currency system in such a |
way as to make our unit of money more |
truly q measure of existing values, re-
moval of tariff and freight rate dis
ordinations against the farmer and |
restoration of the export market for |
agriculture through reciprocal arrange |
ments and other measures
Vote Likely Next Week.
AS debate began on the measure,
which was generally believed to have
the support of President Roosevelt, |
indications were that final vote would
not be had until the first of next week
Embodying the principles of the |
- III 1~& 49, L.
seek to guarantee the farmers q mini |
mum price by levying and distributing |
to him q processing tax sufficient, to-
gether with the actual market price, to
bring his return to pre-war parity with
industrial commodities.
To gain these benefits, the farmer
would have to agree to reduce his
acreage or production of the four
staples In the measure-wheat, cotton,
tobacco and hogs-by 20 per cent.
The opposition directed its offensive
at the tax provisions, contending the
consumer would be forced to shoulder
a burden mounting into the hundreds |
of millions Of dollars. But Chairman
Jones of the House Agriculture Com |
mittee said the consumer would be
protected.
Some members were ready to demand
that rice, peanuts and dairy products
be included in the proposal. Chairman
Stone Of the Farm Board and Carl
Williams, a member, described the bill
yesterday as ''step in the right direc-
tion," praising especially the provisions
for cutting production.
While the Farm Board members gave
their approval in principle, the indica-
tions grew that amendments would be
numerous. The chief threat to the
measure as it Is now drafted lies, how
ever, in a determination of how hard
its tax provisions might hit the average
consumer.
Protection to Consumer.
In his report to the House, Chair
man Jones said the measure gives |
protection to the interests of the con-
SUmer" because 1t cannot be used by |
the agricultural interests to force con- |
sumers to pay a higher percentage of |
their incomes to farmers than was the |
case before the war"
The Texan said evidence showed
'retail prices of the products con-
cerned need not be greatly advanced |
by the imposition of the adjustment |
charges" and noted that 1913 bread |
prices about approximated those of to- |
day, though wheat then was more than |
twice as high.
With wheat prices as they are this
WINTER, Jones said, there is only /
about half cents worth of wheat in |
l6-ounce loaf of bread and the i'm
position of the maximum tax on wheat |
should at the most increase the price
OF such loaf by less than one cent"
Jones said that with the price of |
live hogs 4 cents a pound lower, the |
price Of ham is cents a pound higher |
than in 1913 and that pork chops also
cost more
Doubling the present price of cotton !
would increase the price of voile, which |
now sells for cents yard, by half |
cent, and the price of cotton shirt |
which now sells for a dollar by two
cents"