Evening star., 1933-05-14
FARM PROCESSING
TAX DELAY LIKELY
Roosevelt Orders Wallace to
Submit All Levies Before
Imposing Them.
BY the Associated Press.

BY the Associated Press.
Delay in the use Of the processing
taxing power in the farm relief act as
lever to boost farm prices appeared
certain last night as preliminary activ-
ity to administer the bill began.
President Roosevelt anxious to make
a tariff truce effective for the duration
of the London Economic Conference
starting in June and for the period
prior to that, has instructed Secretary
Of Agriculture Wallace to submit any
plan for processing taxes to the White
House before ordering them into effect
There Is provision in the bill re-
quiring that when any processing tax
Is levied a compensatory import tax"
shall be assessed on imports Of farm
commodities taxed or goods manufac-
tured from them. Originally. the bill
referred to the tax as duty" but this
was changed at the suggestion of the
State Department. The import tax
would be a tariff in effect
The White House is anxious to pre-
vent any misunderstanding on the part
of other natiors that tariffs are being
boosted here while the United States Is
leading the wav in an effort to break
down tariff walls and invigorate inter-
national trade.
While the White House has not
ordered that the use of processing taxes
be abandoned their non-use during the
London Conference. expected to last
several months. NAV have the effect Of
shifting the approach of Wallace's orga-
nization to the farm problem. t
Wallace told reporters yesterday the
methods to be used to better farm prices
and curtail production have not been
<1nfA x,1t I,,,k l.
worked out at commodity meetings in
coming weeks and adopted only after
effort has been made to have them ap-
proved by producers. professors and
dealers. These groups will have repre-
sentation on the commodity councils
he will establish
Wallace yesterday appointed Charles
j. Brand Of Washington. a native of
Minnesota. as co-administrator of the
act with George N. Peek of Moline, Ill.
chief administrator.
Chester Davis, former Montana Com
missioner of Agriculture, is scheduled
for the other co-administrator post
Wallace said commodity chiefs will be
named this week. NJ L. Wilson of Mon
tana State College is scheduled to di-
rect application of the act to wheat.
Wallace, although refusing to say
definitely what course the administra-
ton will take. indicated there is little
prospect Of any acreage curtailment
plan being applied to wheat before VIM
ter wheat planting begins late in the
Summer. Spring wheat planting is
nearly complete
He will confer informally with repre-
sentatives of the cotton industry 'to-
morrow when proposals for trade
agreement covering the chief crop of
the South will be up for discussion.
Subsequently. this years plan for that
crop will be worked out definitely at
formal commodity meetings To what
extent the Smith cotton option plan
will be used will be determined at that
time.
20 Per Cent. Of Area Planted.
Although only about 20 per cent. of
the corn area has been planted. Wal
lace indicated he does not believe
definite plan for that crop can be
worked out which will make possible
acreage curtailment in advance of
planting. He said administration of