The midland journal. (Rising Sun, Md.) 1885-1947, 1933-07-28
National Topics Interpreted


Of them in sixteen
Effect of states, have just Civ
United Action demonstration
of what can be done
by unified action. We have just seen
them sign contracts voluntarily under
which they have agreed with their
government to destroy certain portions
of their growing cotton crop as a con-
certed effort to force prices higher
that their industry may live. Z,
AS result of this action, more than
100000 acres of growing cotton will
be plowed under. That means approx
imately 100000 bales from the po-
tential crop will never be allowed to
attain maturity. It will never be on
the market; it will never be used for
clothing or other fabrication; it is out
of the economic life. Whether such a
course is good or whether it is con-
trary to the laws to which all humans
must respond, Is another question.
The fact is that we who live have seen
a government and people take step
that history must record as epochal.
The farmers are going to be paid for
that portion of the crop which they
destroy. l have the exclusive infor-
nation that the average amount to be
paid them will be close to $3.50. A
great many will receive more because
they are larger producers and some
will get less, but there are thousands
of them who will receive around that
sum in cash. Ali, will receive the addi-
tional benefit of higher price for that
portion of the crop which grows on to
harvest.
am told privately, and I think it
is an interesting fact, that the bulk
of the contracts offered to the secre-
tary of agriculture under the cotton
plan carried estimates by the farm
ers that are proving to be conserva-
tive.
The government, through the De-
partment of Agriculture. is arranging
the scale of payments so that it will
figure out from 81 to 500 per acre.
If farmers land is producing this
year an estimated 100 pounds of cot
ton and not more than 124 pounds, he
will receive 81 for each acre plowed
under From that basis of production,
the payments range upward to $50 an
acre where the production is calcu-
lated at 275 pounds to the acre or
more.
In addition to the plan of payment !
have been describing, there is an op-
tion plan under which the farmer is
given an option on cotton which the
government heretofore has acquired in
the various farm relief programs. The
purpose of the present plan. of course,
is to force the price higher. The cot
ton which the government holds, there
fore, can and will be sold sometime
for more money than it was worth
when the government bought it. An
option is given the farmer by which
he can become the titular owner of
this government cotton in an amount
equal to the amount he agrees to de-
stroy out of this years crop. He can
get this profit instead of the cash
payment available otherwise.
The option plan is based upon pay
acre, and the government makes no
payment on destroyed crops where the
estimate showed potential produc-
tion of less than 100 pounds to the
acre. That is true regarding pay
ments under the cash plan. Which
brings to the fore the real reason there
is payment at all. The government
considers that the farmer is entitled
to return on his land and the pay
ments, whether in cash or optional
holding of old cotton, and gets what
amounts to rental to let it lie idle
insofar as the cotton crop is con-
cerned. He can use it for potatoes
or something else, just so it is not
cotton.
But from whence is the money COM
ing to make these payments and how
is the government
Where Moneygoing to stand such
Comes From a tremendous drain
in order to make
good on its promises to the cotton
farmer and to the wheat farmer who
likewise is soon to sign agreements
not to plant so much acreage this fall
or next spring?
The processing tax is the answer.
The government will collect from the
miller AZ cents in a tax on every
pound OF cotton that goes into mills
for manufacture into the thousands
of uses for which cotton is available.
1t will collect 80 cents bushel on
every bushel of wheat that enters a
mill from which to obtain funds for
paying the wheat farmers ground rent
al if they withhold certain portion
of their acreage from planting in the
next crop year.
1t seems intricate to most of us, but
the Department of Agriculture experts
say it is simple. this method of cal
culating what the farmer is to re-
ceive, whether cotton or wheat. They
explained 1t to me thus: a cotton farm
a