Evening star., 1933-05-11
FARM BILL LEADS
ALL OTHER ACTS
Initiation and Other Parts
Place 1t in Class
by Itself.
BY DAVID LAWRENCE,

Although called 'the farm bill the
measure which has just been made
ready for President Roosevelt's sigma
ture contains more items bearing upon
what is hoped will be a national re-
construction program than anything
passed by Congress since the new ad-
miniStration came into power.
In fact, with the possible exception
of the bill which created the Recon-
struction Finance Corporation no
measure since the war Is as far-reach-
ing In its financial and economic pow
ers as the so-called farm imitation
legislation which has been ironed out
in conference and before another "a
hours will be signed at the White
House.
The new law will give the Secretary
Of Agriculture wide powers over the
principal commodities of the farm and
will give the President the most COM
prehensive power ever given Chief
Executive over the currency and none
tary system and also will be the first
farm mortgages involving perhaps, ST.
000, 100000 in that activity alone.
Eight Billions Involved.
If the possible Government obliga-
tions are added up, it may be said that
the measure involves at least $8,200,-
100000, which is the biggest total ever
contained in a single law in American
history. First, Of course, the President
Is given authority to issue $1,000 000,-
900 in currency. Second, the President
can arrange to expand Federal credit
by the sale of $4,000, ,000, 900 in Gov
ernment bonds Third, Government Sc
curities up to about $4,000. 100000 may
be issued to refinance farm mortgages.
And, finally, about s200,000,00 is made
available through the Reconstruction
Finance Corporation as an aid to
farmers for loans to refinance debts
through compositions with creditors.
The law also would permit the ac-
ceptance of $200,000,000 in silver in
payment for war debts and authorizes
the President to Ak the gold content
Of the dollar as well as remonetize silver
on an unlimited basis.
The President has indicated he will
use his powers sparingly and some per-
haps not at all. But there can be no
doubt that the President is vested by
the measure with control over inf1a-
ton such as never before has been
given the executive branch Of the
Government It is assumed that the
issuance of new currency will depend
expansion program work out. Similarly,
the use of silver to supplement gold is
another policy that Is looked upon as
q last resort rather than an immediate
step.
Held Best Strategy.
The combination Of the farm relief
and imitation powers In one bill was
largely a matter of strategy in pilot
d. A
exact use of the discretionary powers
by the Department of Agriculture is
very much in doubt.
Those who oppose the domestic allot-
ment plan insist it will not operate very
long without material changes and per-
haps abandonment altogether.
Most of the interests who dislike the
plan are counting on their opportunity
to convince the department by actual
practical experience that it will not
work.
But the administration is determined
to experiment with it just as its prede-
cessor tried stabilization through the
Farm Board No estimates are avail
able as to how much money the farm
plan will cost, as very little has been
said about this, but the net cost Of the
Farm Board arrangement was $780,
The Roosevelt administration believes
American agriculture Is worth, from
| time to time, laboratory experiment
of any reasonable amount.
The possibility that rising prices will
make many of the farm allotment pro-
visions unnecessary is counted upon by
administration officials as break"
they may get and thus be saved any big
expense.
All these items will have to be audited
up to June 80, 1884, before the country
will know whether the budget has been
balanced.
Budget Item Necessary.
The farm item IS one Of these that
has not been expected to unbalance the
budget, but undetermined advances,
nevertheless, will have to be made
against collections of processing taxes.
1t has been suggested that $500, 600
may be required for this fund
Money is being spent literally in the
hope of producing a momentum for
, economic recovery and when the con-
gressional campaign Of 1884 comes the
people will decide whether the ex-
penditures have been worth while.
(Copyright. 1933)
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